A trade agreement is an international treaty that sets the conditions for trade in products and services between countries. It defines trade rules and outlines each country’s preferential trade terms, including tariffs, taxes, and investment guarantees.
Importance of Trade Agreements
Trade agreements are important because they facilitate open trade by removing barriers like tariffs and quotas. This can lead to economic growth, job creation, wider market access, and a higher standard of living by promoting a greater variety and affordability of goods and services.
Types of Trade Agreements in Fiji:
A. MSGTA (Melanesian Spearhead Group Trade Agreement)
The MSGTA provides preferential duty rates on goods from participating countries, except for:
- Beverages, Spirits, and Vinegar (excluding certain items)
- Tobacco and manufactured tobacco substitutes
- Mineral fuels, mineral oils, and related products
- Cane sugar
Current Members: Fiji, Papua New Guinea, Solomon Islands, Vanuatu, and the Kanak and Socialist National Liberation Front of New Caledonia.
Requirements:
- Goods must be wholly produced or sufficiently processed in Fiji.
- Exporters must fill in the Certificate of Origin (MSG Form A), authorized by FRCS.
Handbook:
Click on the link to download the MSGTA ROO Handbook.
B. PICTA (Pacific Island Countries Trade Agreement)
PICTA is a free trade agreement among 14 Pacific Island countries, aiming to remove tariffs on most goods, excluding alcohol and tobacco.
Current Signatories: Cook Islands, Fiji, Kiribati, Federated States of Micronesia, Nauru, Niue, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu.
Requirements:
Exporters must complete the PICTA Certificate of Origin (Form FIC1), authorized by FRCS.
Goods must comply with the rules of origin based on 40% local content.
Handbook:
Click on the link to download the PICTA Handbook.
C. IEPA (Interim Economic Partnership Agreement)
The IEPA is a trade and development agreement between the European Union and Pacific countries, providing duty-free and quota-free access to the EU for goods from Pacific States.
Member Countries:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
Requirements:
- Goods must meet the rules of origin under Protocol II.
- Exporters must apply for a movement certificate (form EUR.1) with FRCS.
Fees will be applicable per form /certificate
Handbook:
Click on the link to download the IEPA Handbook.
D. CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora)
CITES is an international agreement ensuring that trade in wild animals and plants does not threaten their survival.
Key Points:
- Legally binding, but countries must adopt national laws to implement it.
- Regulates trade through a permit system for species listed in three appendices:
- Appendix I: Species threatened with extinction (trade generally prohibited)
- Appendix II: Species that may become endangered if trade is not controlled (trade allowed with permits)
- Appendix III: Species protected in at least one country that requests assistance in controlling trade
Requirements:
- Importers must clear goods at their port of export (Nadi Airport, Nausori Airport) or via courier services.
- Verification of goods with a CITES certificate issued by the Ministry of Environment and a letter from the Ministry of Itaukei Affairs.
Last Updated - July 28, 2025