garment proposal

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Aust considers Fiji garment proposal

AUSTRALIA has written to Fiji’s Prime Minister Sitiveni Rabuka agreeing to consider a proposal for liberalised entry conditions for Fiji clothing and other exports. In the past, the Australian government has been unwilling to give much ground to Fiji on the issue because of high unemployment in the Australian

garment manufacturing industry. But

signs are emerging that some concessions will be forthcoming.

Fiji exports millions of dollars worth of clothes to Australia duty-free under the South Pacific Regional Trade and Econ omic Cooperation Agreement (SPARTECA). But a requirement for 50 per cent Fiji content in products manufac tured by foreign-owned factories in special tax free zones is an inhibiting factor. Fiji has also pressed Australia to agree to maintenance of its current preferential margin as Australia continues to reduce general tariffs for competing exporters to the Australian market.

Federal Minister for Development Coop eration and Pacific Island Affairs Gordon Bilney met Fiji’s Deputy Prime Minister Filipe Bole on the issue. It was Bilney who sent the letter to Rabuka agreeing to consider his proposals for changes to SPARTECA. The move coincided with a bid by Fiji to raise the issue at the forum in order to increase pressure on Australia.

While other island states can benefit from duty-free access to Australia and New Zealand through SPARTECA, Fiji is the one country with a substantial manufactur

ing industry.

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