As Fiji began 2026, its merchandise trade deficit – exacerbated by rising import demand – remained a focal point for policymakers and economists, with particular attention on the bilateral trade relationship with Australia, one of Fiji’s most significant commercial partners.
Latest official data show Fiji running a sizable trade deficit, a persistent feature of the economy where imports of goods consistently exceed exports. A combination of strong domestic demand for capital and consumer goods, alongside limited export capacity, continues to weigh on the merchandise balance as the country enters the new year.
Australia remains one of Fiji’s principal markets for both exports and imports. According to bilateral trade statistics compiled through the end of October 2025, Fiji exported AUD 21 million worth of goods to Australia while importing AUD 54 million from Australia in that month alone, resulting in a monthly trade deficit of AUD 33 million in merchandise with its neighbour. While this reflects only a snapshot, it underscores the broader pattern of Fiji’s trade imbalance with Australia: Australia routinely exports more to Fiji than it imports.
Over the broader calendar year, Australia has been a key importer of Fijian goods, including agricultural products and textiles (with Fiji’s exports to Australia valued in the hundreds of millions of US dollars in recent years) but Fiji’s imports from Australia remain substantially larger in value terms. Historical data indicate Fiji imported roughly US$479 million in goods from Australia in the latest comparable period, underlining the scale of the deficit outside seasonal statistical fluctuations.
The composition of this trade imbalance reflects structural issues well known to economists: Fiji’s limited manufacturing base means it depends heavily on imports of machinery, vehicles and consumer goods from Australia, while its own export base dominated by sugar, fish and agricultural commodities, has struggled to expand rapidly enough to narrow the gap.
For 2026, the continuing merchandise deficit underscores the importance of export diversification strategies and value-addition in key sectors. Fiji’s policymakers are likely to push for enhanced regional trade arrangements, improved supply chain linkages and sustained cooperation with Australia to bolster export capacity and competitiveness.
