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Dec
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SPARTECA is a non-recurring, non-discriminatory trade agreement in which Australia and New Zealand grant duty-free access to all ICC products (excluding sugar in the case of Australia). The South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA) is a non-reciprocal trade agreement in which Australia and New Zealand offer unrestricted and free access to certain products from the developing countries of the Pacific Islands Forum. Signed in 1980 in Tarawa, Kiribati, the agreement is governed by rules of origin aimed at addressing unequal trade relations between the two groups. [1] The textile, apparel and footwear (TCF) industry has been a major beneficiary of Sparteca due to preferential access to the Australian and New Zealand markets. The agreement came into force on January 1, 1981. See www.homeaffairs.gov.au/Freetradeagreements/Documents/origin4.pdf for the sparteca reference mitt.oceanic.net.fj/wp-content/uploads/2018/10/SPARTECA.pdfHandbook and click on the link for SPARTECA SPARTECA has played a key role in Fiji`s development and achieving sustainable economic growth. The agreement was signed in 1980 and implemented in 1981. In view of the commitment made by the Australian and Fijian authorities to develop a WTO-friendly regime in place of the ICS, the SPARTECA (TCF regulation) programme has been developed. The Sparteca Regulatory Concept (TCF) complements the existing Sparteca contract and provides for a change in the way the local area content (LAC) is calculated for TCF (products) products entering Australia from Forum Island Countries (FICs). Under existing SPARTECA agreements, goods can enter Australia duty-free if the authorized cost of the plant is greater than or equal to 50% of the total starting plant cost of producing the goods.

These rules are still in effect. The local textile, apparel and footwear (TCF) industry 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 provided about 18,000 people, representing 16% of the total paid labour force, in employment. The rapid expansion of the TCF industry in Fiji was attributed to the abolition of CWT quotas by the Australian government in 1987, which allowed quota-free and duty-free access under Sparteca, the introduction of the Factory/Tax-Free Zone System (TFF/TFZ) in 1988 and the Australian Import-Credit Scheme (ICS). Fiji continues to export under SPARTECA and has led to the growth of various sectors. From 2001 to 2014, the textile, clothing and footwear (TCF) sector benefited from the SPARTECA-TCF programme, which was replaced by the Developing Country Preference System (DCPS) for Australia in 2015. The SPARTECA (TCF rules) system allows companies to use the excess local content (ELAC) of certain sparteca-eligible TCF products to meet the 50% content requirement in otherwise unqualified eligible products. Elac is derived only if the LAC of a product exceeds 70%. Similarly, ELAC can only be used if a product`s LAC is greater than 35% and a final manufacturing process is carried out in the CIF.