veiled blessing
p. 43 · Read in the full issue
The decline of Sparteca ... a veiled blessing
THE gradual erosion of the benefits of the South Pacific Regional Trade and Economic Co operation Agreement (Sparteca) could be a blessing in disguise for Fiji.
Both Australia and New Zealand are opening up to world trade by reducing general import tariffs, and this will
narrow Fiji’s advantage.
“Rather than mourning the demise of our Sparteca preferential access we should begin to eradicate the barriers to trade that still exist between our two countries (Fiji and Australia) and to build a freer trading environment,” said Berenado Vunibobo, Fiji’s Minister for Trade and Commerce.
Speaking at September’s Fiji-
Australia/Australia-Fiji Business Coun cils (FABC/AFBC) meeting in Fiji he
predicted: “Trade patterns will be based more closely upon relative areas of competitiveness and Australia may be come a less important trading partner for Fiji than at present.”
He suggested that the Fiji-Australia trade relationship long-term may be come part of a wider regional free trade bloc encompassing Fiji, Australia and New Zealand, and later other Pacific islands. Sparteca covers Australia and New Zealand and the Forum Island countries Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Papua New Guinea, Solomon Islands, Tonga, Tuvalu, Vanuatu and Western Samoa.
Sparteca has given Fiji manufacturers opportunity to test their products in an overseas market, build up business con tacts, and learn from international com petition. Largely due to the Tax Free Factory Scheme, Fiji also has a manufac turing sector capable of taking advan tage of Sparteca a drawcard for many investors to Fiji.
However, Fiji’s Finance and Economic Planning Minister Josevata Kamikamica
said in a recent interview with PIM that he too expected Sparteca’s influence on trade development to diminish.
Australia, Fiji’s main trading partner under Sparteca, introduced the Australia Industry Plan in March. It will reduce the tariff levels on most imports into Australia to five per cent by 1996, and therefore the value of the duty free access that Fiji goods receive in Australia. It signals the end to most of the trade
advantages currently enjoyed by Fiji
under Sparteca. It could reduce the importance of Australia as a export market for Fiji, and signal a beginning for Fiji to diversify their export market.
Certainly Vunibobo and Kamikamica are eager to see this happen.
Vunibobo said the country needed to look now at steps to facilitate the move toward freer trade, for example removal of the non-tariff barriers.
Fiji wants to diversify its sources of supply, broaden its range of import providers and look further afield for markets. It still enjoys preferential access to Australia and New Zealand, but it is looking at the future now. □