"A regime which displays such a total disregard for basic human rights, democracy and freedom has no place in the Pacific Islands Forum," said its chairman, Toke Talagi.
Fiji's rejection of fundamental principles like "the full observance of democratic values" and the defense and promotion of human rights had given the Forum no alternative, he said in a statement.
Talagi said he had "considerable sorrow and disappointment" in confirming Fiji's immediate suspension from "full participation" - but the diplomatic and economic bloc had stopped short of expulsion of the military regime, said Talagi, who is also premier of the South Pacific micro state of Niue.
The suspension bars Fiji's leader, ministers and officials from taking part in any Forum meetings or events, and cuts Fiji out of development funding until a democratic government is restored, he noted.
On Friday, Fiji military ruler, Commodore Frank Bainimarama, continued to defy international pressure to announce elections, confirming that he would not hold them for at least five years.
That set the stage for his country's ouster from the Forum, which had given Fiji until Friday to announce elections for 2009 or be suspended from the group.
"I think we made it quite clear that is not going to happen," the military chief told Australia's Sky News television in an interview broadcast Friday. "There will be no elections until September 2014."
Bainimarama ousted the ethnic Fijian-dominated government in a 2006 coup and installed himself as prime minister. He has vowed to rewrite the constitution and electoral laws to remove what he says is discrimination against the country's large ethnic Indian minority before holding elections. Critics say he shows little sign of being willing to give up power.
"You've got a dictator up there now who doesn't want to listen to anybody else other than himself," New Zealand Prime Minister John Key told Radio Dunedin on Friday, ramping up his rhetoric against the regime.
"My view is that they will be automatically suspended from the forum and I think you may see similar reaction from other bodies like the Commonwealth," he added, referring to a group of 53 countries that are mostly former British colonies.
Australian Foreign Minister Stephen Smith agreed, saying Bainimarama's lack of action meant the country's suspension would take effect Saturday.
"Fiji has shown no intention to return to democracy and on the contrary has torn up its constitution," Smith said.
Fiji President Ratu Josefa Iloilo announced in early April that elections would be delayed until 2014. He also suspended the national constitution and fired judges who had declared the military government illegal. Emergency laws were also imposed on the media to curb expressions of dissent.
Bainimarama said Friday that the censorship laws would be extended when they expire later this month.
"We want this calm to continue for a while," he said. "It's irresponsible reporting that undermines" calm.
Bainimarama said within two weeks he would announce a five-year timetable for reforms leading to the 2014 elections.
"We have to get rid of racism in the country in the next five years," he said, referring to long-standing conflicts between indigenous Fijians and ethnic Indians. Bainimarama is an indigenous Fijian.
He also called for Australia and New Zealand to be expelled from the Pacific Islands Forum, saying they were putting undue "pressure on the Pacific Islands and that's not how we operate."
New Zealand Foreign Minister McCully said Thursday that foreign aid to the impoverished country had already slowed, and the European Union had frozen hundreds of millions of dollars in funding to help restructure Fiji's sugar industry, a key export income earner for the severely weakened economy.
AP jaf
