CARIBBEAN & PACIFIC ISLAND COUNTRIES INVESTMENT POLICIES XIAMEN INTERNATIONAL CONFERENCE & EXHIBITION September 9 th,2006 General Overview of the South Pacific Island Countries Presenter: Mr. Taito Waradi – President of the Fiji Chamber of Commerce and Industry

Introduction  Main focus of the presentation – Cook Is, Fiji, Micronesia, PNG and Samoa  The Pacific is a services oriented economy  Island type – mainly coral & volcanic islands  Major division – Melanesian, Micronesian and Polynesian  Land mass – 4.1sq km – 21sq km (000’s)  Pacific islands countries are still very young nations & can be expected to learn and adapt from time

Economic Statistics  Population – 20 thousand – 5,800 thousand  GDP per persons (US$) –  Literacy rate (2004 est.) – 57% - 99%  Bureau of Statistics contact Fiji - or Samoa - FSM - Cook Is –  Detailed data is available in the country fact sheet

Resources  Melanesia (Fiji & PNG) - mineral, mining, forestry, oil deposits, agriculture, fisheries and aquaculture & tourism  Polynesia (Cook Is & Samoa) - agriculture,fisheries and aquaculture & tourism  Micronesia (FSM) - fisheries

Investment environment  Developing infrastructure/High cost  Developing financial market  Reforming legal and regulatory systems  Reforming state-owned enterprises  Working with the private sector to build dialogue & capacity

Incentives  Sector focused – (tourism,resource based industries)  Emerging industries – AVC, BPO,  Potential exists in the value adding in agricultural products, fisheries, tourism and wood manufacturing sector  Tax exemption on raw materials  Low corporate tax rate  Investment allowance  Government policy conducive to investment  Private sector investment drives economic growth

Economic Policies  Pacific plan to strengthen regional cooperation and integration – October 2005  Look North Policy  Pacific 2020 (published in May 2006)  Establishment of IT Park in Fiji

Success Investment Stories Fiji - Mineral Water - BPO - Tourism Samoa- Tourism,Agriculture Cook Islands - Pearl industry, Tourism, Agriculture PNG- Mining, Coffee Micronesia- Tourism, Fisheries

Challenges  High transportation cost  Remoteness/Market size  Unemployment  Geographical location/remoteness  Market access  Investment – Implementation period

Delivery methods  Trade regimes – 4 components - Bilateral Trade agreement - Melanesian Spearhead Group (MSG) trade agreement - PICTA/PACER - Multilateral  Look North Policy  PIPSO  FCCI/CCPIT (M.O.U)  Fiji China Business Council being established in Fiji

THANK YOU (Cook -