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SPARTECA has played a key role in Fiji`s development and in achieving sustainable economic growth. The agreement was signed in 1980 and implemented in 1981. The South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA) is a non-reciprocal trade agreement in which Australia and New Zealand offer duty-free and unlimited access to certain products from Pacific Islands Forum Development Island member countries. The agreement was signed in Tarawa, Kiribati, in 1980, and is subject to rules of origin to address unequal trade relations between the two groups. [1] The textile, clothing and footwear (TCF) industry has been one of the main beneficiaries of SPARTECA thanks to preferential access to the Australian and New Zealand markets. The Agreement entered into force on 1 January 1981. SPARTECA is a non-reciprocal and non-discriminatory trade agreement in which Australia and New Zealand grant duty-free access to all products originating in central reporting countries (with the exception of sugar in the case of Australia). Refer to www.homeaffairs.gov.au/Freetradeagreements/Documents/origin4.pdf for SPARTECA Reference mitt.oceanic.net.fj/wp-content/uploads/2018/10/SPARTECA.pdfHandbook and click on the link for SPARTECA The local textile, clothing and footwear (TCF) industry in Fiji has grown over the past 10 years and is now one of the most important industries in Fiji. In 1997, the TCF industry accounted for 26% of Fiji`s total domestic exports; It contributed about 3.5% of GDP and gave employment to about 18,000 people, or 16% of the total paid workers. The rapid expansion of the TCF industry in Fiji was attributed to the australian government`s abolition of TCF quotas in 1987, which allowed quota-free and duty-free access under SPARTECA, the introduction in 1988 of the tax free Factory/Zone (TFF/TFZ) scheme and the Australian Import Credit Scheme (ICS). Fiji continues to export under SPARTECA and has led to the growth of different sectors. From 2001 to 2014, Fiji`s textile, clothing and footwear (TCF) sector benefited from the SPARTECA TCF scheme, which has since been replaced in 2015 by the Developing Country Preference Scheme (DCPS) in the case of Australia.

In view of the commitment made by the Australian and Fijian authorities to develop a WTO-friendly agreement in place of the ICS, the SPARTECA system (TCF provisions) was developed. The SPARTECA Commission (TCF) concept complements the existing SPARTECA contract and provides for a change in the way local area content (LAC) is calculated for TCF products (products) entering Australia from Forum Island Countries (FICs). Under existing SPARTECA schemes, goods may enter Australia duty-free if the factory cost is greater than or equal to more than 50% of the total ex-works cost for the manufacture of the goods. These agreements are still in place. The SPARTECA program (TCF provisions) allows companies to use surplus local content (ELAC) from certain TCF products eligible for division, in order to meet the 50% salary requirement for products that are not otherwise eligible. ELAC is only derived if the LAC of a product is greater than 70%. Similarly, ELAC can only be used if the LAC of a product is greater than 35% and if a final manufacturing process is carried out within the FIC. The duration of the S-TCF programme is from 1 March 2001 to 31 December 2004. The Australian CSI began in July 1991 as part of a wide range of customs and industrial reforms in Australia. It was introduced as a temporary measure to promote Australian exports of TCF and ceased on 30 June 2000, except in the case of Fiji, where an extension had been granted until October 2000. .

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