Envoy concerned about big drop in exports to US

Dionisia Tabureguci
Fiji's total export to the United States declined by nearly 20% in the first seven months of this year compared to the same period in 2004.

Figures released by the US Department of Commerce showed that total exports from Fiji to the United States for January-July 2005 dropped to US$90.3 million from US$117.5 million in 2004, a decrease of US$27.2 million or 19%.

The decline is due largely to a significant reduction in garment exports which dropped to US$16.2 million from US$48.7 million, a drop of US$32.5 million or 67%.

The reduction in garment exports stems from the expiry in December 2004 of the bilateral agreement covering garments between Fiji and the United States.

Under the agreement most of the garments exported to the US from Fiji enjoyed preferential access into that market.

Without the preferences, Fiji garments are unable to compete successfully with garments exported to the US by more efficient and low cost countries like China.

The decline in total exports to the US is a matter of concern to Fiji's Ambassador to the United States, Jesoni Vitusagavulu, who took up his appointment in August this year.

“I'm concerned about the drop in exports because it is not a temporary decline but a permanent one unless we take quick corrective measures to reverse the trend”, said Ambassador Vitusagavulu.

“The United States”, he said, is Fiji's second largest export market and a drop of the magnitude experienced would have a telling impact on total export earnings.

He added: “The drop is particularly concerning because exports to other countries like Australia and the United Kingdom are falling or are projected to fall”.

Vitisagavulu says his office will concentrate its activities on reversing the downward trend in exports to the United States.

The ambassador said there is very little that can be done to reverse the decline in garment exports as it will be very difficult if not impossible for the US to reinstate preferences Fiji once enjoyed.

“Activities need to focus on expanding export of other products to a level sufficient to offset the gap left by garments, “he said.

He remarked that filling the void left by garment will not be easy because it is expected to increase to US$50 million by end of the year.

He said that Fiji should encourage the expansion of exports of tuna loins from PAFCO, fresh fish, Fiji water, wood products like furniture's from Pacific Green Industries, Pure Fiji products, and root crops and vegetables as they have the best potential to fill the void left by garments.