THE Australia-Fiji trade and investment relationship continues to strengthen with significant growth across multiple sectors.
Two-way goods and services trade have grown significantly, with Australia ranking as Fiji’s second-largest export destination and third-largest import source.
Nearly 500,000 Australians visit Fiji annually, accounting for about 40 per cent of Fiji’s GDP, underscoring tourism’s key role.
Infrastructure investment reached $AUD 1.6 billion in 2024, up from AUD 1.3 billion in 2019, showing expanding commitments in tourism, financial services, manufacturing, and digital infrastructure.
“Our objective is to support your endeavours to continue to build the prosperity of both of our countries and our peoples,” said Justin Lee, First Assistant Secretary, Melanesian Division, Office of the Pacific, Department of Foreign Affairs and Trade, Canberra.
“And underpinning that objective is our Vuvale partnership, which is the cornerstone of everything that we do between the two countries.”
“Our biggest tool is now the Development Cooperation Program. In this financial year, it’ll be about $AUD 123 million. That’s guided by the Development Partnership plan, which we have with the Fiji government,” he said.
The plans focus on health, education, disaster resilience, infrastructure, and economic reform, and programs such as the Market Development Facility support micro, small, and medium enterprises, promoting inclusive growth.
“We also have the Pacific Horticulture Market Access plus program, which is helping Pacific countries, including Fiji, deal with regulatory aspects of exporting goods, including access for products into new markets.”
Major infrastructure projects and digital connectivity initiatives are underway to support economic growth and resilience.
Over $AUD 150 million committed through the Australian Infrastructure Financing Facility for the Pacific (AIFFP) to transformational projects in Fiji.
Projects include upgrades to Nadi International Airport and development options for Lautoka Port, enhancing trade and transport capacity.
“Building climate-resilient roads and bridges through the Fiji Transport Infrastructure Restoration Project is already going quite well. Already built 8 of 9 bridges and resealed 1.5 million square kilometres of road across.
“We’re taking forward a long-standing project, the Nadi Flood alleviation project, which we hope will become Fiji’s most significant climate adaptation investment, with design and feasibility work commencing this year,” he said.
Addressing trade barriers between the region and improving standards remain priorities to unlock new opportunities and deepen economic ties.
“On financial literacy, amid all of that around the enabling and voice, we recognise there’s still much more to do, including for government, especially on the market access side.
“We acknowledge the issue of kava and exports to Australia is one of great interest and great potential,” he said.
Lee added that they are supporting the Quality Infrastructure Initiative, which is helping to develop regional kava standards by building technical capacity and providing expert advice and equipment to support national standards bodies.
“That works closely aligned with the Pacific’s regional kava development strategy, PACER plus. We also believe it is a good opportunity to continue reducing trade barriers and improving standards.”
“And we welcome Fiji’s renewed interest in joining PACER plus and are happy to continue sharing exchanges and central exchanges on that.”
As Fiji considers joining PACER Plus amid pressure for free trade, the government remains committed to open trade and seeks signals to reinforce that commitment.
Plans to elevate the Fiji-Australia bilateral relationship to a treaty level signal a long-term political commitment to collaboration.
According to Lee, the Prime Ministers of both countries announced their intent to upgrade the VUVALE partnership to a treaty, reflecting deeper political and economic ties.
Negotiations and ministerial guidance will define the treaty’s scope and priorities in the coming months.
The treaty aims to provide a strong political mandate to break down policy barriers and enhance cross-sector cooperation.
He highlighted the treaty’s role in enabling government agencies to address constraints and support business priorities more effectively.
“I think it will give us a very strong mandate to be making policies and addressing policies that can really facilitate much stronger trade and investment ties across the breadth of our relationship,” he said.