UN Convention to assist in improving Fiji's International trade contracts

The United Nations Convention on contracts for the International Sale of Goods contribute significantly to introducing certainty in commercial exchange, decreasing transaction costs and facilitates the ease of trading across borders.

This was highlighted by the Ministry of Foreign Affairs, Deputy Secretary Policy, Esala Nayasi to the Parliament Standing Committee on Foreign Affairs and Defence.

He says the convention is to provide a modern, uniform and fair text of law for contracts for the international sale of goods, reduce barriers in international trade and promote the use and development of international trade.

Nayasi says the convention governs the international sale of goods between private businesses excluding sales to consumers sales of services and sales of specified types of goods.

He says it will give enormous confidence to foreign investors and traders to enter into commercial arrangements with Fijian based businesses.

Nayasi says once the convention comes into force in Fiji, all contracts for the international sale of goods concluded between a party having it place of business in Fiji and a party having its place of business in another contracting state will fall under the scope of application of convention.

He says the domestic sale contracts will not be affected by the convention and they will continue to be regulated by the current provisions of the Act.