Hon Prime Minister,

Deputy Prime Minister and Minister for Finance, Strategic Planning, National Development and Statistics, Hon. Prof Biman Prasad,

Charge D’affaires, Australian High Commission, H.E John Williams,

Australia-Fiji Business Council President, Allison Haworth-West,

Fiji-Australia Business Council President, Vera Chute,

Respective CEOs,

Ladies and Gentlemen,

Bula Vinaka and good morning to you all.

I am delighted to join you all this morning on this important day, as we congratulate our friends in Australia and wish them a Happy Australia Day.

 

For me personally, I have a long history with Australia and it has been my second home. I pursued my undergraduate studies at the University of the New South Wales and after graduating I lived and worked in Australia with Price Waterhouse Coopers (PWC) before returning home to Fiji. Therefore, January 26 remains an important date in my calendar, having lived in Australia for many years and still connected with my friends.

 

I acknowledge and thank the Fiji-Australia Business Council for organising this event today.

 

Ladies and Gentlemen,

Fiji and Australia have shared a strong and enduring bilateral relationship, with extensive investment and trade ties. Through the Vuvale Partnership, we have further strengthened our partnership and elevated it to the next level. Yes, people of Fiji and Australians are family.

 

As all are aware that Australian tourists continue to be the largest source of foreign arrivals.  In fact, Australians have played a crucial role in our tourism recovery following the opening of our borders in December 2021.Just last month we welcomed over 42,000 Aussie visitors to our shores – the largest monthly figure on record.

 

Ladies and Gentlemen,

Australia continues to be one the largest sources of foreign direct investments (FDI) in Fiji, and we have seen a strong rebound in investment from Aussie companies since borders reopened. In the previous financial year there were over 40 registered investment projects from Australia across 10 different sectors valued at over $56 million. We continue to see a number of investment projects in the pipeline come from Australia across a broad range of sectors including education, renewable energy, green technology, ICT infrastructure, business process outsourcing to name a few.

 

Ladies and Gentlemen,

Fiji has all the necessary ingredients to be a key economic player and the regional outsourcing hub. Our renowned culture of hospitality and resourcefulness, combined with our strategic location and world class internet connectivity, means that it is well positioned to deliver exceptional value for clients.

 

Australia is Fiji’s second largest and most diverse export destination and we’re seeing more opportunities to export niche, high-end premium products to the Australian market. Since the trial for the commercial importation of kava in Australia began in December 2021, Fiji has exported nearly 50 tonnes of kava worth over $4 million and has over 150 registered kava exporters. We hope that full commercial exportation of kava might start soon.

You can now see Fiji Kava products, such as powders and tablets, in the mainstream retail market in Australia, including retailers such as Chemist Warehouse and in over 300 Coles stores nationwide. There are opportunities for other ‘in-demand’ and emerging products such as ginger, bongo, chillies, mahogany timber as well as beauty and skin care products.

 

The Coalition Government’s main aim is to increase Fiji’s trading volume by diversifying Fiji’s exports so that it is spread across a large number of products. In order to do this, it is vital to build competitive advantages, and this is possible by redirecting incentives and initiatives, in areas that we are good at. This will include initiatives and programmes to build capacities in MSMEs to engage in cross-border trade.

 

Ladies and Gentlemen,

With the Ministry’s name placing an emphasis on the MSMEs, Micro, Small and Medium Enterprises including Co-operatives, we are focusing on creating an enabling business environment, in collaboration with the relevant MSME partners. We would like to see our MSMEs grow – from Micro to Small and further to Medium and most importantly, be export ready and tap into the export markets like Australia.

 

MSMEs and Co-operatives are the engine of change and growth. They provide much needed support to large enterprises who are exporting through the small holder concept. Thus, the positive ripple effects are evident in the development of Fiji’s economy.

 

Ladies and Gentlemen,

A perfect investment and trade climate requires   streamlined business processes. Since I have taken up office, I have been meeting with countless businesses and potential investors in various sectors. I am well aware of the bottlenecks and challenges in doing business in Fiji. And these bottlenecks have made it difficult for MSMEs to actively participate in trade, especially exports.

It is my priority — to remove bottlenecks and make doing business easier in Fiji.

 

I am working very closely with other Ministers to address these cumbersome regulatory and administrative issues, so we can provide an enabling business environment for investors.

 

Ladies and Gentlemen,

Trade is the main engine and driver for economic growth. The trading environment has significantly evolved over the years. The tensions we are now seeing in the international trading system have been building over decades.

What is important to understand is there are two types of trade barriers – (1) tariff barriers and (2) non-tariff barriers. We have witnessed over the years that with the commitments to reduce tariff barriers such as import duties, countries are increasingly implementing non-tariff barriers, which have become a significant challenge to trade.

 

Market distortions remain significant in key areas of global trade. For example, agro-food products overall face higher trade barriers than industrial goods. They are more likely to face non-tariff barriers, such as biosecurity and quarantine requirements, at the border than an industrial product like a refrigerator.

 

Ladies and Gentlemen,

Whilst traditional trade agreements have ensured liberalization of tariffs, there are very limited agreements that actually look at addressing non-tariff barriers. It is no secret that trade costs associated with non-tariff measures are estimated to be more than double that of tariffs. Looking ahead, the Ministry of Trade is actively negotiating the Indo-Pacific Economic Framework (IPEF). The IPEF is a novel and landmark initiative led by the United States that looks to facilitate cross-border trade, and address these non-tariff barriers, and trade logistics issues. Fiji and Australia, both IPEF Partners, are working very closely in addressing important issues and challenges of the 21st century. IPEF, more so than any other traditional free trade agreement, will also leverage Public-Private Partnership and Business-to-Business initiatives and has an opportunity to deliver FDIs and technology transfer.

 

Ladies and Gentlemen,

As a country bursting with potential, Fiji is aptly positioned now more than ever to capitalise on these to create   trade and investment, which will lead to employment, revenue generation. Our growth will be led from within by harnessing our vast human capital – our people.

 

Ladies and Gentlemen,

The Australia-Fiji Business Council links are so important, because it builds confidence and promises economic benefit for our people. This is why it is so important for us to continue working together.

So as we make progress together and bring to fruition our shared aspirations, we must use this event to identify clear priorities that require our commitment.  I thank the many businesses present here this morning for showing their commitment towards building our nation and capitalising on these New Opportunities.

 

I must say, everyone here is important in embracing Fiji’s development and unlocking the talent of our people.  Let us seize our future and delve deeper into these New Opportunities to secure a better future and one where we can achieve more together.

 

Ladies and Gentlemen,

With these words, I wish you all a fruitful event and am certain that Fiji and Australia have even better days ahead in terms of economic development and prosperity.

 

Vinaka Vakalevu and Thank you.