PNG eye Free Trade Agreement with China

Papua New Guinea wants to increase trade with China under a Free Trade Agreement but will depend on a feasibility study expected to be concluded in July, this year.  

International Trade and Investment Minister Richard Maru said “we [PNG] are determine to grow and deepen our relationship with China and anchor it through a Free Trade Agreement if our joint feasibility study confirms that it is viable and in our [PNG] national interest to enter into a Free Trade Agreement with China.”

The statement followed a two-hour meeting with Chinese deputy of Commerce Minister Tang Wenhong on Saturday [picture insert], on the sideline of the bilateral discussions held by Foreign Affairs Minister Justin Tkatchenko and his Chinese counterpart Wang Yi.

Mr Maru, a strong critic of Australia and New Zealand Pacific Trade Agreement, PACER Plus; said “whilst we acknowledge Australia for being the biggest investor in PNG with investment valued at over AU$24.8 billion, they hardly buy from us.

“PNG’s exports to Australia in 2022 stood AU$1.6 billion [K3.7 Billion], with over 98% being gold and other precious metals whilst Australia’s exports to PNG stood at AU$95.9 million [K222 million]. Trade has been skewed in Australia’s favor for decades.”  

Statistics shows that PNG enjoys more positive trade with China, and Mr Maru wants to grow the trade between both nations.

“In the past five years, PNG had recorded surplus balance of trade with China, from 2017-2021. In 2020, PNG exported K6.7 billion, imported K2.6 billion and has a trade surplus of K4.1 billion, china is ranked third as top export destination for PNG’s merchandise and also ranked second top import source for PNG.

“This indicates that trade with China is economical. We have realized that our future in terms of exports lies with China. If both Australia and New Zealand have Free Trade Agreements with China and they are the biggest export markets for these two countries, we must also move in this direction.”