Further to discussions at last year's Pacific Islands Forum with Prime Minister Qarase of Fiji, I am pleased to announce that Australia has decided to extend the lifespan of the South Pacific Regional Trade and Economic Co-operation Agreement (textiles, clothing and footwear provisions) as part of our efforts to support Fiji industry.
In extending the scheme, the government also recognises the interests of Australian industry in continuing to supply fabric to Fiji.
The scheme, which facilitates duty free access to Australia for textiles, clothing and footwear products manufactured in Forum island countries, was due to expire on 31 December 2004.
It will now be extended until 31 December 2011, with a review of the scheme's effectiveness to be carried out in 2007.
Textiles, clothing and footwear is the second largest industry in Fiji, employing some 20,000 people, many of them women. The extension of the scheme will provide some assurance to those workers and companies as they adjust to the competitive international trade environment.
The government, in consultation with the Fiji Government and relevant industries in both countries, will continue to discuss other possible measures to help create a more viable textiles, clothing and footwear sector in Fiji.