Chair – Excellency, Mr. Saqer Abdulla Al-Moqbel, Kingdom of Saudi Arabia’s Permanent Representative to the WTO,
Discussant – Excellency, Mr. George Mina, Australian Permanent Representative to the WTO,
Excellencies,
WTO Secretariat,
Ladies and Gentlemen,
Opening remarks
Bula Vinaka and good morning to you all.
I bring warm greetings from the Government and people of my country Fiji. It is a pleasure to be here at the World Trade Organisation (WTO).
The Fiji Government welcomes the 4th Review of Fiji’s Trade Policy by the WTO, and I am pleased to be here today to present and discuss Fiji’s trade and investment policies and our future development aspirations.
As Fiji’s Minister for Trade and Deputy Prime Minister, on behalf of Fiji and her people, I extend warm greetings and sincere gratitude to engage in this crucial dialogue that underpins the very essence of our nation’s economic growth and prosperity.
At the outset, I would like to acknowledge the WTO Secretariat for the comprehensive report. I would like to also thank His Excellency, Mr. Ambassador George Mina, of Australia for taking up the role of the Discussant for Fiji’s Trade Policy Review.
Fiji has provided written responses to all the advanced written questions, as well as those questions that were submitted past the deadline. We received over a 100 questions and we attempted to answer them all in a short space of time. We thank all the WTO Members for their insightful and constructive questions, as well as their engagement throughout this process, including your presence here today.
Significance of trade
Trade has long been the lifeblood of Fiji’s economic growth and development, ingrained deeply within the fabric of our society. From the fertile fields of our farmers to the skilled hands of our artisans, from the creativity of our entrepreneurs to the inviting warmth of our hospitality industry, Fiji’s trade landscape blossoms, driven by a collective determination to connect with the world and showcase the richness of our culture and products. It is through trade that we expand horizons, open new opportunities, and foster innovation.
Our dependence on international trade is not merely a choice. It is a necessity shaped by the unique geographic, demographic, and economic factors that characterise Fiji. With a relatively small yet vibrant domestic market, we understand that our pathway to progress lies in our ability to embrace global connections, harnessing the potential of international trade and supply chains to fuel our economy and uplift the livelihoods of our people.
Importance of Rules Based Multilateral System
This is why Fiji acknowledges the critical role of the World Trade Organization (WTO) in facilitating a rules-based, transparent and equitable global trading system. As we navigate an increasingly interconnected world, the WTO remains instrumental in ensuring that all nations, regardless of size, can participate in international trade on fair and just terms. This is why we need a strong rules-based multilateral trading system.
As we embark on the review of our trade policy, we look forward to engaging with all the WTO members in the spirit of cooperation, with the hope that this review will be an opportunity to strengthen Fiji’s trade and economic policy and in the process create a stronger, fairer, and more prosperous global trading environment for all.
Vulnerability and Challenges
Chair, Excellencies, Ladies and Gentlemen,
Those that were present during Fiji’s last Trade Policy Review in February 2016, would recall that during the presentation in this very chamber, Fiji was in the grips of the strongest tropical cyclone ever to make landfall in the Southern Hemisphere. Tropical Cyclone Winston, a Category 5 cyclone, caused extensive and widespread destruction to our homes, schools, hospitals, and critical infrastructure, costing us about one third of our Gross Domestic Product (GDP).
Since our last review, Fiji has encountered even more frequent cyclones and floods that have tested the resilience of our economy and our people. Climate change remains a formidable adversary, with cyclones and hurricanes of increased frequency and intensity wreaking havoc on our infrastructure and agriculture, hindering our economic progress. Our experience with natural disasters and climate change has served as a stark reminder of the importance of integrating climate resilience into our trade policies.
The COVID-19 pandemic further exacerbated these challenges, posing unparalleled health and economic crises for our nation and our citizens. The Pandemic, apart from bringing suffering, shut down our tourism sector and as a result our economy endured one of the highest contraction of GDP in the world.
Economic Recovery
Chair, Excellencies and Ladies and Gentlemen
With the new Government taking office in December last year, Fiji is well on the path of recovery. Our economy grew by 18.6% last year and a further 8% this year, and is forecasted to continue on the growth path by 3.8% next year, despite global challenges of dampened growth in our major trading partners and continuing crisis plaguing the world economy.
One of the most pressing obstacles we are confronted with in international trade is the escalating impact of non-tariff barriers faced by Fijian traders. These barriers impede the smooth flow of goods and services, disproportionately affecting the livelihoods of our communities engaged in trade. Addressing these issues is crucial for Fiji, to ensure fair and equitable participation in the global marketplace.
In the face of these adversities, Fiji remains steadfast in its commitment to formulating robust policies and strategies to navigate the complexities of global trade. As part of our economic diversification agenda, we are supporting industries that have proven to be resilient during the COVID-19 crisis.
Apart from Tourism, there is intense focus by the Fiji Government on Renewable energy, green and blue solutions such as recycling, Commercial Agriculture and aquaculture with strategic local or foreign investors, Manufacturing especially in renewable spaces and niche products, the fast-growing BPO sector, Education and ICT/Data Warehousing opportunities.
New Trading Arrangements to Address new Concerns
To address the rising challenges of non-tariff barriers, Fiji is engaging in constructive dialogue and collaboration with our trade and economic partners, seeking mutually beneficial solutions that facilitate smooth trade and investments flows, promote job creation and sustainable development.
One example of such an engagement is Fiji’s participation in the Indo-Pacific Economic Framework (IPEF) for Prosperity, which aims to fuel economic activity and investment, promote sustainable and inclusive economic growth through negotiation of 4 key pillars: (1) Trade; (2) Supply Chains; (3) Clean Economy; and (4) Fair Economy (Tax and Anti-Corruption).
In May this year, the IPEF partners substantially concluded negotiations on the Supply Chain Pillar. The IPEF Supply Chain Agreement is a first-of-its-kind international agreement, which aims to increase the resilience, efficiency, productivity, sustainability, transparency, diversification, security, fairness, and inclusivity of their supply chains through both collaborative activities and individual actions taken by each IPEF partner.
To overcome the multifaceted challenges facing Fiji, we recognise the vital role that support and assistance from our trade partners play. We remain committed to fostering and strengthening regional and international partnerships to unlock new trade opportunities and promote sustainable economic growth.
Fiji Government priorities
Chair, Excellencies, Ladies and Gentlemen,
I wish to emphasise the priorities that lie at the heart of our newly elected Government’s vision for economic growth and building resilience through international trade.
Economic diversification
Fiji recognises that a diversified economy is vital for stability as it allows us to be less susceptible to external shocks. While we recognise the contributions of our traditional industries, such as agriculture and tourism, we are committed to exploring new sectors and avenues for economic expansion. By promoting investments in renewable energy, ICT, BPO, manufacturing, film making and other creative industries, and other emerging sectors, we aim to reduce over-reliance on specific industries and create a more resilient economic landscape.
MSME Development
The backbone of Fiji’s economy lies in our vibrant community of Micro, Small, and Medium Enterprises. We view MSME empowerment critical to fostering inclusive growth and reducing income inequality. Through targeted capacity-building programmes, improved access to finance, and enhanced market linkages, we seek to nurture our MSMEs’ entrepreneurial spirit and enable them to thrive in both local and international markets.
Improving the business and trade facilitation environment in Fiji
Fiji has undertaken significant efforts to improve the business environment and enhance trade facilitation within our nation. Recognising the crucial role of a business-friendly climate in attracting investment and promoting trade, Fiji has implemented a range of reforms to streamline processes, reduce bureaucracy, and foster an environment that encourages entrepreneurship and innovation.
Additionally, Fiji is taking substantial steps in modernising our trade facilitation environment, with the assistance of International Organizations such as UNCTAD and the World Bank, and International Plant Protection Convention.
As an island nation, the efficient movement of goods and services is paramount for Fiji’s trade competitiveness. Our commitment to trade facilitation encompasses streamlining customs procedures, enhancing port infrastructure, and leveraging technology to expedite cross-border transactions. By reducing trade barriers and simplifying administrative processes, we strive to create an enabling environment that encourages trade and investment.
WTO Agreement on Fisheries Subsidies
Chair, Excellencies, Ladies and Gentlemen,
Allow me to highlight the paramount importance of the conclusion of the second wave of the negotiations on the fisheries subsidies agreement for Fiji. As a nation deeply connected to the ocean, fisheries play a vital role in our economy, food security, and cultural heritage. Thus, the successful conclusion of these negotiations holds significant implications for our nation’s sustainable development and environmental stewardship.
During the WTO 12th Ministerial Conference, recognising the urgency of addressing the challenges faced by our oceans, Fiji led the charge, on behalf of the Pacific nations and the ACP, in seeking an outcome on the Agreement on Fisheries Subsidies.
Fiji’s commitment to the cause goes beyond words. We have tabled a comprehensive proposal followed by a text, for the negotiation of the remaining issues on the Agreement on Fisheries Subsidies. Our proposal seeks to strike a balance, taking into account the diverse interests and circumstances of all member states. We stand resolute in our commitment to driving the negotiations on the remaining issues forward and earnestly seek the support and partnership of our fellow WTO members, with a view to conclude negotiations by MC13 in February 2024. Fiji’s Permanent Mission to Geneva is reaching out to members to socialise the text and answer any questions that members may have on it.
Chair, Excellencies and Ladies and Gentlemen,
Fiji notes that there have been many questions from Members regarding our outstanding notifications to the WTO. Rest assured that Fiji’s inability to meet its notification obligations is independent of Fiji’s commitment to WTO. One of the primary challenges in meeting WTO notification requirements is capacity constraints, inadequate data, and competing priorities, such as addressing pressing domestic issues.
In response to the capacity limitations, Fiji is actively engaged in developing capacity and working with development partners such as the UNDP and the New Zealand Government, in addressing these capacity gaps.
Chair, Excellencies and Ladies and Gentlemen,
We have also received several questions raised regarding women participation in business and cross border trade. Fiji recognises the importance of promoting women empowerment in employment, business entrepreneurship, and cross border trade. Fiji has adopted gender mainstreaming in the National Budget process, and line Ministries play a critical role in encouraging more women participation in business, entrepreneurship, company boards and in cross border trade.
We also received questions on the environment and our role in the international and multilateral forum. As stated earlier, Climate Change continues to pose an existential threat to Fiji. We call on the entire WTO membership to ensure that through responsible and sustainable trade we are able to mitigate the effects of climate degradation and environment exploitation. Our unique ecosystem and biodiversity helps us maintain livelihoods for our rural and maritime communities and supports our largest industry, Tourism. Thus, Fiji’s advocacy of environment and climate change is a matter of our survival.
Conclusion
Chair, Excellencies, Ladies and Gentlemen,
As I round up my remarks this morning, on behalf of my delegation, I wish to express our gratitude for the opportunity to engage in this constructive process. I also extend our sincere appreciation to all members for their valuable questions, contributions and feedback. Those contributions will be instrumental in shaping our future trade policies.
Fiji is committed to multilateralism and remains determined in preserving and furthering the basic principles and objectives that underpin the multilateral trading system. Having a fully fledged Mission in Geneva, is testament to our commitments, even though it is challenging for a small island nation to have a presence in Geneva and allocate resources.
Thank you for the opportunity to present our Trade Policy review and we look forward to a productive and constructive conversation.
Vinaka and thank you.