By RACHNA LAL and RANOBA BAOA
Government has called on the private sector to look at increasing efforts in Asia by finding markets for more value-added Fijian made and Fijian grown products.
The Permanent Secretary for Industry and Trade, Shaheen Ali, said attention needs to be focused on these sorts of products and not just raw material or primary goods.
Mr Ali was speaking during the Investment Fiji-organised one-day export awareness seminar held at Tanoa Plaza Hotel in Suva.
This seminar in Suva will be followed by another one at the Tanoa Waterfront Hotel in Lautoka on Thursday.
The seminar brought together key speakers from trade facilitation and trade policy-making agencies for stakeholders and the private sector.
Mr Ali said the Asian region has been the most dynamic and fastest growing region in the last 30 years and will remain so for the next 30 years.
“In this regard, we need to be involved in some of the Free Trade Agreements that are currently being negotiated in the Asian region, in order to deepen our integration with Asia,” he said.
“In a nutshell, we need to become competitive or else risk being left outside of the growth hub of the world.”
Mr Ali said last year, the total trade with the Asian region (excluding imports from Singapore) accounted for 19.5 per cent of Fiji’s total trade.
“But this is relatively small compared to the size of the Asian markets and its growing importance,” he said.
“Our exports are concentrated on only a few products, a narrow range of raw materials – fish, woodchip and timber and minerals.”
Trade with the Pacific
Mr Ali said given the progress in the Melanesia Spearhead Group (MSG) Trade Agreement with the removal of import tariffs by Papua New Guinea and Vanuatu, opportunities have opened up for Fijian manufactured products and textile, clothing and footwear.
“We are working on reviving the Pacific Island Countries Trade Agreement to enable better market access for Fijian goods in the rest of the Pacific countries,” he said.
Mr Ali revealed that the 2012 export data indicated that Pacific Island countries, combined, accounted for 22 per cent of Fiji’s total exports or $530 million.
In comparison, Australia, which is Fiji’s largest trading partner, accounted for 15 per cent of Fiji’s total exports or $331 million.
“Fiji’s trade with the Pacific Island countries has increased from less than one per cent of total trade (both exports and imports) in the year 2000 to eight per cent of total trade in 2012,” Mr Ali said.
New Caledonia opportunities
In order to consolidate our position as a regional hub, we need to focus on key emerging markets in the Pacific, like New Caledonia and other French territories.
“New Caledonia may have a small population of 264,000 people, however, it has the highest per capita income (US$32,000), larger than Australia, New Zealand or Japan and is comparable to Singapore and the US,” he said.
Australian exports underperforms
Meanwhile, Mr Ali noted Australia remains our largest trading partner having accounted for 17 per cent of Fiji’s total trade last year.
He however revealed our exports have been underperforming and trade balance with Australia has been worsening.
“For illustration purposes, if gold and garments are removed, the remains exports to Australia is on par with exports to New Zealand, despite fact that the Australian economy is seven times larger than New Zealand’s,” he said.
“More effort is needed to overcome the, at times, unfair non-tariff barriers imposed on our agricultural exports – vegetables, fruits and kava,” he said.
Trade and Development Council
Mr Ali further highlighted why a National Trade and Development Council, which will be chaired by the Minister for Industry and Trade, was needed.
“The council will allow policy makers and practitioners to work together to develop appropriate policies and strategies to grow trade and access to markets and capitalise on new emerging markets,” he said.
The Permanent Secretary for Industry and Trade, Shaheen Ali (left) and Investment Fiji chief executive, Ravuni Uluilakeba, hold the Exporter of Year Awards trophy during the Investment Fiji-organised export awareness seminar at Tanoa Plaza Hotel in Suva yesterday, Photo: RAMA