Question

Argue the core principles that should be part of trade policy making in Fiji.

Answer 1

Answer -

The economic performance of Fiji is considered well from its second policy review in 2009.It includes structural reforms,balanced macroeconomic policies and open trade system.Its main hurdles in ecomic growth are dependency and trust on trade and tourism,high transportation costs,poor infrastructure ,frequency of natural disaster etc.affected growth.Some additional reforms are necessary to reduce the problems of economy and increase growth in GDP.

It is expected that first Fiji's trade policy launched in July 2015 will help to reduce some of these economic problems. After that economic growth has been increased,transport, insurance, financial activities have been become the main contributor of GDP growth.over the last few years.Simaltaneously decline in poverty level, improvement in human development indicator and expansion in the provision of basic services also included.

The Reserve Bank of Fiji (RBF) conducts monetary policy having objective of protecting foreign reserves and maintain the low level of inflation.For reduction in budget deficit measures are taken brodening the tax base and reducing the tax incentives and tax holidays.

During the last five years Fiji has taken some measures to increase FDI inflows and improve its business environment.Some important and political progress occured since this review period.It enacted some new trade laws like competition, government procurement,SPS measures,standards, agriculture, shipping and intellectual property rights etc.

For formulation and implementation of Fiji's external trade policy ,the responsibility is entrusted to Ministry for Industry,Trade and Tourism (MITT). It is also liable for investment policies,small business development,consumer protection and for all trade negotiations.

The responsibility of acheiving sustainable growth is entrusted to The National Export Strategy (NES) by achieving competetitveness,value adding, encouraging exports,agro budiness, forestry,marine products, information and communication technology etc.