Fiji is a strategic location for Vanuatu trade in goods and services as a close market for its goods and services trade which makes an advantage for Vanuatu. Both countries are seen as being in the centre of trading connecting the big economies in the Pacific region including Australia and New Zealand to the world in communication and transportation (by air and sea) routes. Despite the imbalance of merchandise trade between both countries which seen Fiji as the third country of Vanuatu merchandise imports lest Vanuatu seen its advantage on the niche market.
International trade in both goods and services plays a major role in Vanuatu’s economic trade and development. Vanuatu’s international trade (exports & imports) contributes significantly to the country’s GDP, demonstrating Vanuatu’s continuous dependency on trade for economic growth and development. With that in mind Vanuatu trade policy and trade related policies advocates on Vanuatu comparative advantages on its goods and services in order to increase trade using existing trade frameworks in the region taking advantage to increase its trade.
Vanuatu is a member to the World Trade Organisation (WTO) in 2012 and is obliged to its international trade rules and principles. The international trade rules encourage regional integration implementing reciprocal trade preferential rules that are of advantage to its partners within the same region. The regional economic integration policy is manifested in the region that have seen Vanuatu becoming a member to the Pacific Island Countries Trade Agreement (PICTA) including Trade in Services, the recent Pacific Agreement on Closer Economic Relation Plus (PACER+) trade agreement signed in 2017 and the revised Melanesian Spearhead Group trade agreement (MSGTA).
These Preferential trade arrangement policies have been negotiated by governments in the region to reduce or remove tariffs or duties on goods traded across each country with the view to expanding trade and market in the region. Vanuatu comparative advantage on its merchandise trade related products, services, investment and labour movement is based on its niche market taking advantage utilising the trade arrangements.
The mission stance to pursue this interest and linking opportunities to private sectors through its connection and collaboration effort in achieving the government sustainable development goals. The mission is aim at pursuing the development cooperation on trade signed between Vanuatu and Fiji focusing on specific sectors of trade and development into the future.
For further information regarding the regional trade agreements, you can access or download a copy of the agreement here
- Melanesian Spearhead Group Trade Agreement
- Pacific Island Countries Trade Agreement (PICTA)
- PICTA Trade in Services Agreement
- Pacific Agreement on Closer Economy Relation (PACER) Plus
Other trade and trade related information can be downloaded on these websites: