Honourable Chair,
Excellencies and Hon. Ministers,
Senior Trade Officials,
Bula Vinaka, Good morning, Good evening to you all from Fiji.
At the outset, I would like to acknowledge the briefing and presentations provided by the Deputy Director General of the World Trade Organization (WTO) and the European Commission’s Executive Vice President and Commissioner for Trade.
Excellencies and Hon. Ministers,
It is vital that the WTO delivers outcomes that are concrete and beneficial for all members. The WTO 12th Ministerial Conference (MC12) is taking place against an unusual trade context stemming from the Covid-19 global pandemic, which has eroded socio-economic development gains and undermined years of progress.
The decisions at MC12 will signal what the future holds for WTO. Therefore, it is critically important that any decision taken at the MC12 has the interest of all members at the core, especially, the small and vulnerable economies.
For small island developing states (SIDS) like Fiji, conclusion of a fair and equitable Fisheries Subsidies Agreement, with adequate flexibilities for SIDS, is crucial. The negotiations on a Fisheries Subsidies Agreement have dragged on for over two decades, whilst unsustainable, industrial fishing continued to drain fish stocks. This exploitation of “our fisheries resources” has been fuelled by subsidies to powerful industrial fishing fleets. Depriving subsistence and artisanal fishers from their rights to food security.
It is also important to note that the text is still being revised and the new draft will be made available tomorrow. We look forward to the revised text having addressed many of the Pacific concerns and provide hope that the agreement will be adequate protection and at the same time flexibilities for small and vulnerable states.
Excellencies and Hon. Ministers,
In terms of the reform of the multilateral trading system, the WTO reform should take into account the specificities of smaller members. There should not be any additional burden to the existing commitments placed on small state members. The SIDS have unique needs, and are at most risk of being left behind by the multilateral trading system.
In Fiji’s view, the reforms should enable the WTO to be development-oriented and inclusive, with a special account of the interests of SIDS. Approaches to flexibilities, such as Special and Differential Treatment, need to be tailor made and based on objective criteria to enable fulfilment of development needs in accordance to a countries development status and aspirations.
The reform proposals should seriously take into consideration the development challenges of SIDS, who face the imminent threat of climate change that have the potential to wipe away years’ worth of development and economic growth.
The WTO’s focus should be on assisting developing countries to build trade-related capacity, increase the competitiveness of micro, small and medium enterprises (MSMEs) and expand trade opportunities.
Excellencies and Hon. Ministers,
In terms of the Pacific ACP trade relations with the EU, there are currently four Pacific ACP Countries that are parties to the EU-Pacific Interim Economic Partnership Agreement (IEPA).
Excellencies and Hon. Ministers,
The Pacific ACP states were negotiating a Comprehensive EPA with the EU, which was suspended in 2016, by the EU for a period of three years. At the 2020 and 2021 Pacific ACP Trade Ministers meetings, the Ministers recalled the culmination of this suspension period, and sought the EU’s position on the continuation of negotiations on the Comprehensive EPA.
Like with other regional EPAs, the Pacific IEPA also contains contentious and unresolved issues that were supposed to be addressed through the Comprehensive EPA.
The provisions on trade in goods have caused much difficulty and continue to do so for our region. The ‘contentious’ issues have significant economic and political consequences for our development.
The IEPA was supposed to be an interim agreement, pending conclusion of the Comprehensive EPA.
This year, as the Chair of the Pacific ACP Trade Ministers Meeting, I wrote to the EU Trade Commissioner, seeking the EU’s position on the Comprehensive EPA.
In response, the EU conveyed that it is committed to build on and support the implementation of the existing IEPA, with the possibility of broadening and deepening its scope and geographical coverage.
Excellencies and Hon. Ministers,
However, the EU is failing to acknowledge the outstanding and contentious issues in the goods agreements. We experienced erosion of trade preferences that were traditionally enjoyed, due to reasons such as Brexit, dismantling of sugar preferences, heavy subsidies provided to EU domestic sugar and beet producers, and rising freight costs, to name a few.
In addition to this, the EU through special committee meetings is taking away the very few important flexibilities, which were agreed in the rules of origin of the IEPA.
It is to be noted that the IEPA has not provided additional market access opportunities for Fiji, nor has it significantly increased our exports to the EU. In fact, our exports have remained stagnant.
The EU is more interested in expanding their own benefits, rather than addressing the continued concerns of the Pacific ACPS. In fact, the expansion of the IEPA without addressing the remaining contentious issues, and to include services, trade and sustainability will be detrimental to the Pacific ACPS.
The inclusion of development cooperation is a bait for the Pacific ACPS to agree to the unfavourable terms of expanding the agreement.
Chair, Excellencies and Hon. Ministers,
Does this mean that the EU is going back on its promises after the European Commission repeatedly highlighted its commitment to negotiate a comprehensive EPA? And defended the interim agreements as stepping stones towards full regional agreements.
Chair, with these words, I thank you for providing me the floor.