Towards Free Trade in the Pacific? The Genesis of the ‘Kava‐Biscuit War’ between Fiji and Vanuatu

Abstract

AbstractContemporary movements towards trade liberalisation have influenced economic development in Pacific island states, where opportunities for growth have always been restricted. The new free trade, centred on comparative advantage, is especially challenging for countries producing sugar, where diversification is difficult, and for the smallest states where trade options have always been limited. New regional trade agreements have been introduced in the Pacific as a step towards global free trade, but have emphasised trade rivalry and conflict, characterised by the ‘kava‐biscuit war’ between Fiji and Vanuatu, rather than complementary trade and cooperation. Movement towards free trade poses acute problems for island states, yet international agreements have not recognised their particular disadvantages, and continue to stress benefits that are nowhere apparent in the Pacific.