Fiji fears force deal with EU to save sugar industry

Viability hangs on interim EPA

By Samisoni Pareti

August 2014

Fears of the collapse of Fiji’s multi-million dollar sugar industry prompted its government late last month to opt for an Interim Economic Partnership Agreement (IEPA) with the European Union.
Investigations by Islands Business magazine had shown that once Fiji’s sugar exports to the EU market are taxed, Fiji sugar will be deemed unviable which would probably lead to the collapse of the entire industry of 24,000 growers and their families as well as the hundreds more who work in the Fiji Sugar Corporation’s four sugar mills.
The ramifications of such an economic fallout will be disastrous, something the Fijian Government of Prime Minister Frank Bainimarama can ill afford on the eve of its September 17 general elections.
Our investigations show that Fiji’s sugar currently fetches around €400 Euro (AU$570) in the EU market. Once our current trade agreement under Lome lapses, Fiji’s sugar will automatically cop duty of €339 per tonne. This leaves Fiji with a mere €61 per tonne in revenue, rendering the entire sugar market unviable.

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One thought on “

  1. This is the problem when you have thugs ruling a nation. Your institutions are changed and abolished senselessly, they also become subserviant to the thugs (judiciary, police etc), your state resources are abused, borrowings made without mandate of citizens, salary paid from family accounting firm, no report and audit of public finances, continued drain of tax funds to men with guns, wholesale transfer of land, natural resources and even national industries to the control of outside bidders! The thugs will do whatever it takes for them to continue ruling the country. The elections is already scandalous! They will also sell national assets and sign trade agreements if it protects their aim of remaining in power. This EPA on sugar export is a glaring example.

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