How did changes in European Union sugar prices affect Fiji’s sugar industry?

Reforms to the European Union sugar pricing structure in the early 21st century significantly impacted Fiji’s economy by reducing the income the country generated from its sugar exports.1

As the EU was the primary market for Fijian sugar—supported by preferential trade agreements such as the Lomé Convention and the Cotonou Agreement—these pricing changes forced the local industry to undergo major structural reforms. To remain viable, the industry had to focus on initiatives aimed at increasing productivity. These economic shifts, combined with the growth of the garment industry and tourism, ultimately led to a decline in the relative importance of sugar to Fiji’s overall economy.1