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Brief - Garment Industry
Brief - Garment Industry
One of the most thriving sectors within Fiji's growing economy is manufacturing. This includes the
manufacture of textiles, garments, footwear, sugar, tobacco, food processing, beverages (including
mineral water) and wood based industries. The sector employs approximately 26,000 workers and is one
of the nation's growing sector. Fiji made products has made substantial progress in the international
trading arena such as Pure Fiji, Fiji Water, Pacific Green Furniture and FMF Foods Ltd to name a few.
Fiji offers a highly trained and skilled labor force that is both cost effective and productive. Our utilities
that support the manufacturing Industry is both sound and efficient making Fiji one of the cheapest
countries in which to do business. With its sound infrastructure and ports facilities, Fiji again offers a
distinct advantage to the Asia Pacific region in comparison to other Pacific Countries. As per the Economic
and Fiscal Update Supplement to the 2018-2019 Budget Address, garment industry is at an average of $55
million on the gross domestic product by sector between 2013- 2020. The garment industry grew rapidly
after the introduction of the Tax-Free Factory/Tax Free Zone (TFF/TFZ) scheme in 1987.
SPARTECA
The TCF Sector previously traded to Australia through SPARTECA trade arrangement, which was in effect
from 1981 as a non-reciprocal trade agreement. Subsequent to SPARTECA and due to the change of tariffs
and trade practices, Australian government introduced for Fiji S-TCF scheme to assist the TCF sector in
Fiji.
Garment import tariff in Australia in the early 80’s was over 40%. In the past 30 years, the margin of
preference under SPARTECA has eroded, as garment import tariff is now only 5%. The emergence of new
low cost Asian countries like Bangladesh, Vietnam, Thailand and Cambodia has provided increased level
of challenges and competition for Fiji. China continues to be a major competitor. Furthermore, Australia’s
bilateral trade agreements and free trade agreements with various countries and least developed
countries like Bangladesh, given 25% local content have severely impacted trading under SPARTECA, S-
TCF scheme and the DC status.
The TCF Council of Fiji exists to represent members and advance the best interests of the industry in Fiji.
Membership is by annual subscription and includes factories of varying size and expertise, with an elected
Executive Committee providing oversight for the Council.
The Council’s mandate is to foster the continued development and prosperity of the Fiji TCF industry. The
strategic vision for the industry’s long-term sustainability requires active engagement with a wide variety
of stakeholders. This extends from the Executive level of government in Fiji and abroad, to international
industry specialists, various NGO’s and social interest groups, through to industry suppliers, local factories
and trade unions.
The interests of member factories, their staff and customers is supported not only through such
engagement, but also via efforts to secure resources able to support continuous improvement in
production and management practices and ongoing market development activities.
The Council acknowledges its responsibilities as the representative of an industry that is a major employer
and source of export revenue for Fiji. We are committed to ensuring all members operate within the
principles of gender equity and inclusion, fair and ethical treatment of employees, the maintenance of
safe working conditions and respect for our environment. All council members must have successfully
undertaken an independent Social Accountability audit in order to maintain active membership status.
The “Make it in Fiji’ awareness campaign which has been made possible through the marketing grant
provided by the Fiji Government. Fiji’s niche market targets for high volume manufacturing, quicker
delivery lead-times, good communication, close proximity to Australia and New Zealand. The campaign is
trying to capitalize on these advantages. The Textile Clothing and Footwear industry is striking it out on
its own with a campaign that shows Fiji can produce its own clothing lines and footwear brand.