• Persistent Blacklist: Despite sweeping reforms, Fiji remains on the European Union’s list of non-cooperative tax jurisdictions as of December 2024.
• Transparency Troubles: Key issues include not joining major global tax transparency bodies and maintaining preferential tax regimes.
• High-Level Alarm: Permanent Secretary for Trade, Shaheen Ali, raised these concerns at the Pacific-EU Parliamentary Assembly in Brussels.
• Recent Reforms Fall Short: Even after joining the Global Forum on Transparency in December 2023, Fiji’s status remains unchanged.
• Call for Fair Play: Ali urges EU stakeholders to consider the unique challenges faced by small island developing states.
• New Partnership Hope: The Samoa Agreement offers a 20-year framework for deeper cooperation between the EU and Pacific partners.
In a candid address at the Pacific-EU Parliamentary Assembly in Brussels, Permanent Secretary for Trade Shaheen Ali laid bare the challenges that keep Fiji ensnared on the EU tax blacklist—a status that has shadowed the island nation since 2019. Despite considerable efforts to overhaul its financial transparency and regulatory frameworks, Fiji’s tax woes persist.
Why the Blacklist?
Fiji was blacklisted by the EU for several critical reasons:
• Global Transparency Gap: The country was not a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes.
• OECD Oversight: It had not signed the Organisation for Economic Co-operation and Development’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
• Preferential Regimes: Fiji’s favorable tax policies for exporting companies, ICT incentives, and concessionary tax rates for regional or global headquarters have drawn intense scrutiny.
• Missing BEPS Framework: The nation is not part of the Inclusive Framework on Base Erosion and Profit Sharing.
Even after joining the Global Forum in December 2023 and ramping up efforts to strengthen financial transparency, Fiji’s reputation has not yet recovered in the eyes of the EU.
A Plea for a Level Playing Field
Speaking at the DPAC, PS Ali expressed cautious optimism: “We are hopeful that this will change soon with continued progress.” He urged EU stakeholders to adopt a realistic and fair approach that recognizes the unique challenges facing small island developing states in the Pacific. According to Ali, the road to economic resilience for Fiji—and similar nations—requires understanding and cooperation rather than blanket sanctions.
A Beacon of Hope: The Samoa Agreement
In his address, PS Ali also welcomed the Samoa Agreement, a new 20-year partnership framework between the EU and the Organisation of African, Caribbean, and Pacific States (OACPS). Signed in 2023, this agreement has replaced the long-standing Cotonou Agreement and aims to foster deeper cooperation, sustainable development, and a robust trading system. “We stand ready to collaborate with our Pacific partners and the EU to address these challenges,” Ali declared, emphasizing that true progress depends on a united effort.
What Lies Ahead?
As Fiji continues to work tirelessly on its reform agenda, the question remains: Can these changes finally lift the tax blacklist stigma and unlock new economic opportunities? With the EU watching closely, the coming months will be critical in determining whether Fiji’s efforts will translate into a renewed international reputation and a fairer tax framework for small island states.
