Vanuatu's minister for Trade James Bule has repealed his country's ban on Fiji biscuits.
The Daily Post reports that Fiji's High Commissioner to Vanuatu, Inoke Kubuabola confirmed that Mr Bule has signed the repeal order.
The biscuit ban saga has been going on since last November and had threatened to escalate into a major trade war between the two countries.
Fiji had threatened to retaliate to the ban by banning Vanuatu kava imports.
However, Mr Kubuabola said that Fiji is satisfied that the issue has been sorted out.
He refuted claims that Harry Punja of Flour Mills in Fiji contributed funds towards government politicians and had pressured Fiji to take action against Vanuatu.
Last year Fiji imported F$5m worth of Vanuatu kava compared to Vanuatu imports of Fiji biscuit worth F$1.9m.