Business Law and Trade Agreements: A Comparative Analysis of Fiji and Vanuatu

Running Head: BUSINESS LAW
BUSINESS LAW
Name Of the Student
Name Of the University
Author’s Note

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LN71 Of Fiji deals with the Fiji Revenue and Customs Service (Information Sharing)
Regulations 2019. It actually proposes to have a broad based growth in both 2020-2021. Such
growth is owing to the major contributions from agriculture, manufacturing, information and
communications, wholesale and retail trade and accommodation and food industries. In 2020
and 2021, it is objected to outstand the production and improve the imports by 4.4 percent and
the exports shall be expanded by 5.1 % underpinned in the increase in exports of all kinds of
goods and services.
Vanuatu is officially the Republic of Vanuatu located as a Pacific Island Country in the
South Pacific Ocean. Vauatu is a signatory to a sub-regional and regional free trade agreements.
The commitment of participation in free trade agreements is deeply rooted in the country’s
national trade policy, which is the framework to various national developments and strategies
related to the same including the Priority Action Agenda. However, it can be explained that
Vanuatu is interested in keeping the free trade mechanism to its national trade agenda because
free trade is known to be the driving force of the increasing productivity of the economy leading
to constant and viable economic growth towards the stability of the market. However, WTO has
been successful in emancipation of free and liberal trade in the respective territories of the
signatories and increase their economic growth through investment opportunities, resource
utilization, market efficiency and other increased employment opportunities. Thus, it can be
explained that the free trade is deeply rooted in the economic system of Vanuatu and the
liberalization of trade is what the policies and various other notices have focussed to work up on
at the international scale. Thus, structural economic factors lay a very important stand on the
economic stand, openness to trade and the size of the informal economy.

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Figure 1.4. Net changes in tax-to-GDP ratios between 2016 and 2017 (Fiji Revenue &
Customs Service (2017),
2016/17 Annual Report)
Percentage point change, by main type of taxes
Different factors have contributed for the huge increment in the tax related GDP ratios of
Vanuatu and Fiji in 2017. However, such increase in Vanuatu has limelighted the tax revenues
which led to the recovery of losses incurred in march 2015 due to the cyclone Pam. Thus, it can
be conferred that the GDP per capita and the tax levels demonstrate that the economies are more
varied and less direct towards its returns. High GDP is a reflection of high Foreign Direct
Investment due to attraction of foreign businesses and investments in the home country