shaky economic world

Fiji holds her own in a shaky economic world

In 1975, a year described as characterised by uncertainties on the international trade scene in the wake of world-wide recession, Fiji scored a plus. She held imports at close to a “no increase” level, while exports, including re-exports, rose by 15% compared with 1974.

However, Fiji still had a substantial adverse trade balance.

Total imports in 1975 were valued at $220,967,000, 0.7% high er than 1974, while exports and re exports were valued at $142,293,- 000. The adverse trade balance of $78,674,000, was $16,907,000 lower than that of 1974. Thus, there was a substantial increase in foreign reserves and an improvement in the overall balance of payments account with the rest of the world.

The major sources of imports re mained with the traditional sup pliers Australia, the UK and New Zealand. But Australia’s share of the trade dropped from 30.3% in 1974 to 28.9%. The UK gained a bigger slice of the market 13.4% against 9.9% in 1974, while NZ also improved from 11.2% in 1974 to 12.1%. Goods of Japanese origin fell from 17.9% of the total in 1974 to 15.7% in 1975, reflecting a general decrease of the import of duty-free goods which act as a tourist magnet.

The bulk of export earnings were from a narrow range of primary commodities, most of which are sold under special negotiated prices. In 1975, sugar was sold to the UK/EEC under a special arrangement and brought record receipts.

In 1975, sugar exports earned an all-time high of $94,718,000, at an average value of $383.85 a ton, compared with 254,000 tons in 1974 at an average of $263.46 a ton.

Mainly because of new links with the EEC, under which most sugar went to Europe, there was no sugar left for the US, which was a useful market for about 15 years. Under the Lome Convention, the UK paid Fiji $75,631,000 for 170,814 tons of Fiji raw sugar, which was 69.5% of total exports.

Receipts for coconut oil dropped.

Exports of 15,800 tons were worth $5,064,000, at an average of $320.45 a ton. In 1974, 14,000 tons realised $761,93 a ton.

Gold exports were relatively static 68,756 fine ounces worth $8,584,000 in 1975 and 68,890 fine ounces worth $8,621,000 in 1974.

Fiji enjoys a favourable overall trade balance in her export trade with other groups in the Pacific. In 1975, exports to other groups were valued at $12,745,832 ($13,729,572 in 1974) while imports were worth $483,279 ($904,085 in 1974).

The figures for the trade with the various groups were, 1974 figures in brackets: Exports American Samoa, $786,549 ($1,423,103); Solomon Is lands, $53,638 ($129,961); Cook Is lands, $695,069 ($987,854); French Polynesia, $229,437 ($116,538); Gilbert and Elice Islands, $1,181,- 613 ($1,106,247); Line Islands $99,221 ($126,063); New Caledonia, $207,764 ($281,544); Papua New Guinea, $92,700 ($24,- 192); New Hebrides, $1,031,177 ($1 ,240,072); Niue, $704,426 ($361,990); Tonga, $3,066,901 ($3,620,421); Western Samoa, $4,- 059,586 ($3,728,917); Wallis & Futuna, $237,601 ($368,035); Other, $300,150 ($214,605).

Imports American Samoa, $19,249 ($6,551); Solomon Islands, $5,482 ($2,849); Cook Islands, $5Bl ($7,221); French Polynesia, $275 (—); Gilbert & Ellice Islands, $3,816 ($2,110); Line Islands, ($1,035); New Caledonia, $3,142 ($2,932); Papua New Guinea, $156,1 14 ($46 1 ,422); New Hebrides, $8,785 ($4,577); Niue, $2,479 ($328); Tonga, $200,088 ($322,82 1); Western Samoa, $83,109 ($66,21 1); Wallis & Futuna, $159 ( —); others, $26,- 028).

Fiji has a small trade in manufac tured products with neighbouring Pacific Islands. Exports of manufac tures to those groups in 1975, while down generally on 1974, still had a useful role in the economy of a developing country like Fiji. These exports in 1975, with the 1974

figures in brackets, were: Biscuits, $473,000 ($622,000); cigarettes, $19,000 ($49,000); cement, $588,- 000 ($504,000); paints, $190,000 ($239,000); clothing, $58,000 ($76,000); corrugated sheets, $38,000 ($264,000).

There were a number of changes in the composition of imports. Food and manufactured goods decreased significantly, while the value of petroleum products, machinery, transport equipment, and chemicals, mainly fertilisers, rose.

There was a marked decline in the import of goods classed as “tourist goods”. These were worth $17,779,- 000 on 1975, compared with $23,- 829.000 in 1974. It has been esti mated that, on an average, about 90% of tourist goods are sold across the country to visitors to Fiji. The added mark-up constitutes Fiji’s in visible exports, and is the major component offsetting the visible trade deficit.

Along with the drop in value of “tourist goods” there was also a marked downturn in the number of visitors. However, there was an esti mated increase of 16% in total tourist earnings, attributed almost wholly to inflation.

A fairly significant proportion of imports, consisting of capital goods and raw materials, was allowed in at a rate lower than the prevailing rate of duty in line with the government’s policy of encouraging growth in ex isting industries and attracting fur ther investment. The value of those imports in 1975 was $29,359,000, or 13.2% of total imports.

Two or three years ago it was con fidently predicted that fish exports would be second to sugar in value.

The value of fish and fish prepara tions was $213,501. The value of re exports of fish in 1975 was $1,466,- 288. As the cannery at Levuka did not start operating till 1976, fish ex ports are not likely to show substan tial increase till trade figures for 1977 are available. • Being an associate member of the European Economic Com munity has its advantages for Fiji. In a recent coconut oil price com pensation payout, she received $l,- 514.000 instead of the $1.4 million originally approved by the EEC.

The money, paid under what is known as the Stabex scheme, is to cover the fall in receipts Fiji re ceived from coconut oil sales.