"I am simply asking the unions to think again about whether maintaining a trade ban against Fiji is the wrong way to go in trying to get some change there."
Mr Goff said that while the CTU might have good intentions, the Government was reluctant to use economic sanctions with the Fijian economy almost ready to collapse.
"If it does collapse there are some people who will totally lose their livelihoods, with not much as a social-security system to fall back on," he said.
"That will only generate new anger and frustration, much of which could be directed towards the Indian community."
Mr Goff said a trade ban on Fiji would also heavily affect small Pacific nations such as Tuvalu and Kiribati, which directed most of their trade through Fijian ports.
He said the trade ban could also have legal consequences for the CTU.
"They should bear in mind that strikes for political reasons are not lawful and someone could take legal action against them.
"It is not the sort of thing that is initiated by politicians, but it could come from someone who has had their business interests damaged. I will be reiterating that to the CTU this week."
Mr Goff said the Government's line with "smart sanctions" - sanctions against individuals, boycotting Fijian rugby teams and suspending the country from the Commonwealth - was the best way to get the message through without ruining people's livelihoods.
In another development, the Sydney Morning Herald has reported that New Zealand and Australian judges are considering mass resignation from their senior roles in the Fiji courts.
This comes after the resignation of Sir Gerard Brennan, the former Australian Chief Justice, from the Bench of the Fiji Supreme Court.
The Department for Courts could not be reached for comment last night.
Lord Robin Cooke of Thorndon, a member of the Privy Council, is believed to be among those in judicial circles unhappy at the violation of Fiji's constitution by the coup-makers and also by the obliging manner taken since by Fiji's Chief Justice, Sir Timoci Tuivaga, towards the interim military Government.
Sir Timoci has been heavily criticised in judicial circles for drafting the military Government a decree to restructure Fiji's justice system, which includes wiping out the Supreme Court.
There are concerns that such a move could cripple Fiji's justice system, which relies heavily on foreign appointees.
George Speight talks to IRN's Barry Soper
(10 min).
