FOREWORD For Fiji to successfully achieve its vision of peace and prosperity, with all citizens sharing in the fruits of development, we must devise and implement policies and initiatives to enable us to reach our goal. The Government is taking a critical step towards this with the development of an all-encompassing strategy to make Fiji a competitive exporter in a highly challenging global environment. The theme of the new strategy is, “A DYNAMIC AND COMPETITIVE EXPORTER FOR PROSPERITY THROUGH A NATIONAL PARTNERSHIP”. This reflects our faith and confidence in an approach that sees all stakeholders working together in formulating and implementing national development policy. Our country is at a critical point in its development. Having successfully overcome a major national crisis, we are now committed to creating a better Fiji for every citizen, based on economic strength and stability. Over the past five years the country has made good progress in building a more flexible, more competitive and more market--friendly economy. The job market is in recovery. But we cannot be complacent. There are more challenges to be addressed now, than ever before. These include the erosion of preferential trade arrangements under the South Pacific Regional Trade & Economic Co-operation Agreement (SPARTECA) and a reduction in the price paid for our sugar by the European Union. There has been a sharp increase in fuel prices. Our trade deficit has widened. Economic growth has slowed, and there is still not enough new investment. It is clear that we must act now to address these issues. The National Export Strategy document identifies 13 specific areas requiring attention. It also outlines their respective objectives, strategies and performance indicators, as well as the agencies responsible for spearheading implementation of the necessary measures. Some strategies call for additional financial input. Many will need major new infrastructure, regulatory changes, capacity building, improved research and development, or institutional re-engineering. i The successful implementation of Government’s policy initiatives demands our collective and total commitment. The assistance and support of our development partners, both bilateral and multilateral, will be critical. There must be better co-ordination of the specialised resources provided by them to the different executing agencies. I take this opportunity to express my gratitude to all who have contributed to the preparation of Fiji’s new export strategy. My very special thanks go to members of the private sector for their invaluable insight and assistance. May I also, on behalf of my Ministry and the Fiji Government, offer sincere thanks to the Commonwealth Secretariat, and the International Trade Centre, for their support throughout. Finally, I am of the firm belief that the National Export Strategy will prove to be an effective launch pad for Fiji’s future prosperity. May God Bless Fiji. HON. ADI SIVIA QORO Minister for Commerce & Industry ii Abbreviations and Acronyms Government Ministry of Agriculture MA Ministry of Commerce & Industry MCI Ministry of Curative Health Services MCHS Ministry of Education, Youth & Sports MEYS Ministry of Energy & Mineral Resources MEMR Ministry of Environment ME Ministry of Fijian Affairs, Lands & Provincial Development MFALPD Ministry of Finance & National Planning MFNP Ministry of Fisheries & Forests MFF Ministry of Foreign Affairs & External Trade MFAET Ministry of Home Affairs & Immigration MHAI Ministry of Information & Communications MIC Ministry of Justice MJ Ministry of Labour & Industrial Relations MLIR Ministry of Public Enterprises & Public Sector Reform MPEPSR Ministry of Public Utilities & Infrastructure Development MPUID Ministry of Tourism & Transport MTT Ministry of Women, Social Welfare & Housing MWSWH Office of the Solicitor General SG’s Office Public Service Commission PSC Fiji Islands Bureau of Statistics FIBOS Learning Institutions Fiji Institute of Technology FIT Fiji School of Medicine FSM Fiji School of Nursing FSN The University of the South Pacific USP Training & Productivity Authority of Fiji TPAF Government Commercial Companies (GCC), Statutory Bodies, International Organisations, and Others African Caribbean and the Pacific ACP Agricultural Landlord & Tenant Act ALTA Agricultural Marketing Authority AMA Alternative Dispute Resolution ADR Alternative Livelihood Programme Project ALP iii Amalgamated Telecom Holdings Limited ATH Asian Development Bank ADB Audio Visual Industry AV Industry Business Process Outsourcing BPO Capital Markets Development Authority CMDA Central Business District CBD Chief Executive Officer CEO Civil Society Organisations CSO Commerce Commission CC Commonwealth Secretariat CommSec Duty Suspension Scheme DSS Economic Management System EMS Economic Partnership Agreement EPA Effective Rate of Protection ERP Electronic Commerce E-Commerce European Investment Bank EIB European Union EU Exclusive Economic Zone EEZ Export Credit Finance ECF Export Finance Facility EFF Fijian Affairs Board FAB Fiji Audio Visual Commission FAVC Fiji Chamber of Commerce & Industry FCCI Fiji Development Bank FDB Fiji Ecotourism Association FEA* Fiji Electricity Authority FEA Fiji Forest Industries Limited FFI Fiji Hardwood Corporation Limited FHCL Fiji Hotel Association FHA Fiji Human Rights Commission FHRC Fiji Integrated Tax System FITS Fiji International Telecommunications Limited FINTEL Fiji Islands Backpackers Association FIBA Fiji Islands Hotel & Tourism Association FIHTA Fiji Islands Quarantine Services FIQS Fiji Islands Maritime Safety Administration FIMSA Fiji Islands Revenue & Customs Authority FIRCA Fiji Islands Trade & Investment Bureau FTIB Fiji Investment Corporation Limited FICL Fiji Medical Association FMA Fiji National Export Strategy FNES Fiji Pine Limited FPL Fiji Pine Trust FPT Fiji Ports Corporation Limited FPCL iv Fiji Sugar Corporation FSC Fiji Sugar Marketing Company Limited FSMCL Fiji Islands Visitors Bureau FVB Fiji Women’s Crisis Centre FWCC Foreign Direct Investment FDI Foreign Investment Act FIA Free Trade Agreement FTA General Agreement on Trade in Services GATS Gross Domestic Product GDP Hazard Analysis Critical Control Point HACCP Hotels Aid Act HAA Human Resource Development HRD Information and Communication Technology ICT Information Technology IT Information Technology and Computing Services ITC International Sanitary and Phytosanitary ISPS International Trade Centre ITC Meetings Incentives Conferences & Exhibitions MICE National Centre for Small and Micro Enterprise Development NCSMED National Export Strategy NES National Export Strategy Design NESD National Trading Corporation Limited NATCO Native Land Trust Act NLTA Native Land Trust Board NLTB Pacific Agreement on Closer Economic Relations PACER Pacific Island Countries PIC Pacific Island Countries Trade Agreement PICTA Public Private Partnership PPP Public Sector Investment Programme PSIP Pure Obtainable Cane Sugar POCS Research and Development R&D Reserve Bank of Fiji RBF Rules of Origin RoO Secretariat of the Pacific Community SPC Short Lived Investment Package SLIP Small and Micro Enterprises SMEs Society of Fiji Travel Agents SOFTA Southern Cross Cable Network SCCN South Pacific Regional Trade and Economic Co-operation SPARTECA Agreement South Pacific Stock Exchange SPSE SPARTECA-TCF Scheme S-TCF Scheme Strategic Development Plan SDP Sugar Cane Growers Council SCGC v Sugar Commission of Fiji SCF Sugar Technical Mission STM Summit Working Group SWG Technical Assistance TA Temporary Studio Zone TSZ Textiles, Clothing & Footwear TCF Tropic Wood Industries Limited TWIL Value Added Tax VAT World Trade Organisation WTO vi TABLE OF CONTENTS Page No. Foreword ................................................................................................................................ i-ii Abbreviations ........................................................................................................................iii-vi Executive Summary .............................................................................................................ix-xii Chapter 1 Introduction To, And Rationale for the Export Strategy .......................................1 - 4 Chapter 2 The Strategy Design Process and Principles ......................................................5-9 Chapter 3 An Assessment of Export Performance ...........................................................10-33 Chapter 4 Government Policy and Strategy in Support of Export Development ...............34-43 Chapter 5 Cross Cutting Issues .........................................................................................45-51 Chapter 6 The National Export Strategy : The Way Forward ............................................52-54 Sugar ...................................................................................................................54-59 Forestry ...............................................................................................................60-68 Marine Products ...................................................................................................69-76 Agro Business ......................................................................................................77-91 Garments .............................................................................................................92-94 Mineral Water ......................................................................................................95-98 Tourism .............................................................................................................99-104