Honourable Speaker of Parliament, Turaga Bale na Tui Cakau,
The Honourable Prime Minister,
Honourable Deputy Prime Ministers,
Honourable Leader of the Opposition,
Honourable Cabinet Ministers and Assistant Ministers,
Honourable Members of Parliament,
Your Excellencies, High Commissioners, Ambassadors and Members of the Diplomatic Corp,
 
The People of Fiji who may be listening to this Broadcast through Walesi or livestreaming or listening on Radio today.
 
Bula Vinaka and Good Morning to you all.
 
Adhering to our Commitments and Securing our Markets
 
Mr Speaker Sir,
 
I rise to inform this august House that your Coalition Government is acutely attuned to our beloved countries trading  and market access needs. In this case we are securing our market access into the European Union (EU).
 
This was the reason we recently sought Cabinet endorsement for the implementation of the Market Access Commitment under the Interim Economic Partnership Agreement (IEPA) between the European Union (EU) and the Pacific States.
 
This decision sir reflects Fiji’s ongoing commitment to strengthening our trade relations with the EU and safeguarding the interests of our key export sectors.
 
Mr Speaker Sir,
 
The IEPA has a long history. And the previous Government will well remember it.
 
The European Union has historically provided unilateral trade preferences to the African, Caribbean, and Pacific (ACP) region under the Lomé Convention since 1975.
 
Due to the pressure from the World Trade Organisation (WTO) to bring in WTO rules consistency to the preferences that were provided by the EU to the ACP, the Lomé Conventions was replaced by the Cotonou Agreement in 2000, with the objective aligning EU's trade agreements with WTO rules.
 
Thus the concept of Economic Partnership Agreements were born. Each of the ACP Regions began negotiating EPAs from the year 2000. Formal negotiations between the Pacific and the EU began in 2004.
 
The WTO deadline for the EU and the ACP was 8 years, to conclude WTO compatible EPAs by 2008. None of the ACP Regions were able to meet this deadline, including the Pacific.
 
Given that preferences were coming to an end in 2008, those ACP countries with significant export trade with the EU had the option of initialling an Interim EPA to maintain their trade preferences.
 
Fiji and PNG chose to take this route in November 2007, to protect their sugar and fish exports respectively. The initialled IEPA still had outstanding and contentious issues, which was the reason the Comprehensive EPA negotiations with the Pacific continued.
 
Fiji signed the IEPA in 2009, and with the Comprehensive EPA negotiations stalled due to differences in the position on fisheries management issues in the Pacific, Fiji provisional applied[1] the IEPA in July 2014.
 
This was done to ensure that Fiji could continue to export its products, particularly sugar, to the EU. The decision to provisionally apply was also made due to the EU’s decision to withdraw preferences for those ACP countries that had signed and not ratified the IEPA.
 
Whilst Fiji had provisionally applied the IEPA in 2014, Fiji had not implemented the provisions of the IEPA, including reducing and eliminating duties as per Fiji’s market access commitments.
 
The IEPA allows us to send our products to the EU without paying duties or tariffs. In return Fiji has to make similar commitments (what’s known as reciprocity in trade).
 
As part of an essential pillar of the IEPA (market access commitments), Fiji agreed to allow certain products from the EU to be imported into Fiji duty free. Key items, however, were excluded from this commitment to protect Fiji’s revenue and developing industries (what’s known as the exclusion basket).
 
Mr Speaker Sir,
 
Since its signing, Fiji has benefited from this arrangement, particularly in the sugar sector, where the EU member countries collectively accounted for a maximum of 90% of our total sugar exports.
 
Despite challenges, such as competition and fluctuations in global sugar prices, the EU market has been a consistent and reliable destination for our exports, contributing significantly to our foreign exchange earnings and providing employment opportunities for our people.
 
The IEPA has opened opportunities for Fijian businesses to export goods such as tuna, ginger, mineral water, garments and kava, with exports to the EU reaching a peak of $132.4 million in 2022.
 
Mr Speaker Sir,
 
If we do not reciprocate, there is a danger that preferential or duty free access into the EU for Fiji goods under the IEPA may be stopped, threatening the present volume of exports.
 
Thus, implementing our market access commitments under the IEPA is crucial. This means Fiji needs to open its market to goods from the EU under the terms of the IEPA. This involves removing tariffs (taxes on imports) on certain products, making it easier for goods from the EU to enter Fiji’s market.
 
Mr Speaker Sir,
 
To ensure that the tariffs committed for elimination under the IEPA are effectively removed, Fiji will take several important steps.
 
This includes establishing a dedicated team to oversee the implementation of these tariff changes, ensuring they are applied correctly and efficiently.
 
To support this, we will develop clear and straightforward guidelines that will help both customs officials and businesses understand and follow the new rules.
 
Additionally, we will review and, if necessary, update process documents to ensure it aligns with the agreement.
 
We recognise the importance of awareness, which is why we will conduct training sessions and workshops for customs officers, trade officials, and other key stakeholders.
 
These sessions will equip everyone involved with the knowledge and skills needed to implement the tariff removals effectively. To keep businesses and the public informed, we will provide clear and accessible information through our Ministry’s website and direct engagement with business groups.
 
Mr Speaker Sir,
 
As we move forward, we will continuously monitor the process to ensure the tariff eliminations are having the desired positive impact on our economy. This will allow us to address any challenges that may arise promptly.
 
Finally, we will maintain ongoing communication with the EU to resolve any issues that might come up during the implementation, ensuring that this transition is as smooth and beneficial as possible for Fiji. Through these steps, we are committed to fulfilling our obligations under the IEPA while supporting the growth and development of our economy.
 
Mr. Speaker Sir
 
Due to astute negotiations by Fiji’s Trade Team, Fiji’s market access commitment has been reduced from 80 percent to 75 percent, through technical amendments made in the last few years.
 
This translates to Fiji removing tariffs on 4,916 individual lines for imports originating from the EU. Currently, fiscal duties on 32 percent of these lines are already zero at the MFN level, meaning Fiji needs to liberalise duties on the remaining 43 percent.
 
Implementing reduction in import duties on the remaining 43 percent is estimated to result in a revenue loss of approximately $737,000 per annum. This estimate is based on the average of import duties generated over the past six years, specifically on the tariff lines Fiji has committed for elimination under the IEPA.
 
The current benefits in trade far outweigh any revenue loss that may eventuate due to elimination of tariffs on EU goods. We presently export goods such as tuna, ginger, mineral water, garments (life jackets) and kava to the tune of  $132.4 million in the year 2022.
 
In addition, after our decision to implement the IEPA, the global sourcing provisions for canned or processed tuna or fish will be activated by the EU, as part of their commitment. These flexible rules of the IEPA will allow Fiji to source fish from approved foreign flagged vessels (outside of our EEZ), process it onshore and export duty free into the lucrative EU market as Fiji fish. Fiji may enjoy similar success as PNG by utilising global sourcing provisions.
 
Mr Speaker Sir,
 
This partnership remains vital for Fiji's economic growth and development. It aligns with our broader trade and development objectives, particularly in terms of diversifying our export base and reducing our reliance on a limited number of trading partners.
 
The implementation of the IEPA market access commitment marks a significant step forward in strengthening Fiji’s trade relations with the EU.
 
By implementing these, Fiji not only safeguards its existing market access but also opens new opportunities for growth in the fisheries sector through the global sourcing provision.
 
The Ministry remains committed to engaging with the EU to ensure that we continue to benefit from this important partnership.
 
Thank you, Mr Speaker Sir.