Frank Bainimarama

Wellington, Dec 27 NZPA - Around $10 million worth of dairy exports to Fiji may be threatened by an escalating diplomatic row between Fiji and New Zealand.

Relations hit a low last Tuesday when Fiji's military leader, Commodore Frank Bainimarama, gave New Zealand's acting High Commissioner, Caroline McDonald, a week to get out of the country.

Ms McDonald is due to arrive at Auckland Airport tomorrow afternoon.

New Zealand quickly moved to expel Fiji's acting High Commissioner, Cama Tuiloma, who hours later was also given a week to get out.

Fiji company Rewa Dairy has between $F10 million ($NZD9.74 million) and $F12 million worth of trade with New Zealand at stake if the diplomatic row escalates, the Fiji Times reported.

Around 70 percent of milk powder and butter imported by Rewa Dairy comes from New Zealand.

Rewa Dairy chief executive Savenaca Seniloli told the newspaper he hoped the Fiji interim government's decision would not affect trade between the two countries.

Dean of the Commerce, Hospitality and Tourism Studies at the Fiji Institute of Technology Dr Mahendra Reddy also warned that Fiji be the bigger loser through the expulsion of diplomats, which did not augur well for either nation.

Cdre Bainimarama had ordered Ms McDonald's expulsion because the New Zealand Government refused to grant a visa to the student son of a senior official in Suva.

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