PM raises key issues with Chinese Premier in Beijing

Prime Minister, Voreqe Bainimarama has raised some key issues regarding trade, aid and aviation in his meeting with Chinese Premier, Li Keqiang (Ker-jhang) in Beijing.

Bainimarama says Fiji is extremely concerned about the imbalance of the trading relationship with China and the obstacles faced in getting reasonable access to the Chinese market for our goods and services especially compared to our neighbouring countries.

Trade between the two countries has increased from $86M in 2005 to $987M last year.

This is because Fiji is importing a lot more from China than it is exporting. Bainimarama says for every dollar of exports to China, Fiji imports $5.60 worth of Chinese products.

The Prime Minister says a large part of this imbalance is due to the fact that Fiji’s ability to export to China is being severely  hampered by the tariffs that are being imposed on Fijian products. He says these tariffs are not being applied to some of the countries such as Samoa.

Bainimarama told the Chinese Premier that resources such as fisheries face import duties of an average of 14% while exports from the ASEAN countries are duty free. He says this means we have a situation where an Indonesian fishing vessel can fish in Fijian waters and export fish to the Chinese market duty free but the catch of a Fijian vessel from the same waters entering China attracts duty.

Bainimarama also asked China to consider the fact that Australia has given Fiji and other Non Least Developed Pacific countries non-reciprocal duty free access into their markets based on the uniqueness of our development challenges. He says this is a nation that is not as close a friend to Fiji as China has been of late.

The Prime Minister Voreqe Bainimarama has also informed the Chinese Premier that Fiji cannot agree to China’s proposal that would have the effect of steering business away from Fiji Airways.

The Chinese Civil Aviation Administration is proposing that the agreement should allow flights from anywhere in China to Nadi, and also added a provision allowing Chinese airlines to make at least three intermediate stops along the way, as well as points beyond.

Bainimarama says China’s huge passenger capacity and its ability to undercut the fares of Fiji Airways would lure fliers away from Fiji Airways and cause a negative effect on the airline.

He says Fiji Airways currently flies the Nadi to Hong Kong route, three times a week. He adds the airline has made substantial investments in the route to make it viable from a business perspective.

Bainimarama says he would rather implement the existing Air Services Agreement between Fiji and China that would open a Nadi Beijing route for both countries with a code sharing arrangement.