Australia Reaffirms Tariff-Free Access for Pacific Island Goods Amid Global Aid Cuts

WORLD

By: Lusia Pio

5/22/20251 min read

Australia’s Foreign Minister Penny Wong has reaffirmed her country’s commitment to maintaining tariff-free access for Pacific Island exports, amid growing regional concern over rising global tariffs and reduced aid flows.

Speaking in Suva at the Pacific Islands Forum headquarters, Wong declared, “Forty years of tariff-free access into Australia has helped contribute to the prosperity of the Pacific. And I can promise you today, that will not change.”

Her statement comes after the United States imposed steep new tariffs on key Pacific nations—32% on Fiji, 22% on Vanuatu, and 30% on Nauru.

Fiji’s primary exports, such as bottled water, sugar, and fish, play a vital role in its economy, and the move sparked concern among regional leaders.

This address marked Wong’s first international speech since the Labor government’s re-election, during which she also highlighted Australia’s enhanced development commitment to the region.

“The Pacific is facing growing challenges, from climate change, cuts to global aid and rules under strain,” she said.

Australia has pledged a record A$2.1 billion (US$1.35 billion) in Pacific development assistance and committed to allocating 75 cents of every aid dollar to the region.

Wong will also visit Vanuatu and Tonga during her Pacific tour.

Fiji’s Prime Minister Sitiveni Rabuka previously voiced concerns in Washington regarding the U.S. aid freeze earlier this year.

Australia, the Pacific's largest aid donor, continues to position itself as a reliable partner amid China’s expanding influence through security and infrastructure ties in the region.