PNG will maintain its opposition to the Pacific Agreement On Closer Economic Relations Plus says Richard Maru

Papua New Guinea's stand not to be part of the Pacific Agreement On Closer Economic Relations Plus [PACER Plus] will remain.    

Minister for International Trade and Investment Richard Maru said the country will maintain its position of the last 10 years to not be part of PACER Plus.

He made this known to the new Australian High Commissioner to PNG John Feakes in their first meeting recently.

PACER Plus introduced by Australia and New Zealand at the Pacific Islands Forum [PIF] Leaders Meeting in 2019, is a regional trade agreement for member states of the PIF to encourage and increase regional trade.

Majority of the member states of PIF are signatories to the regional trade pact but PNG opposed when Minister Maru was then Minister responsible for Commerce, Trade and Industry a decade ago. 

In a media statement released on Thursday, Mr Maru said “I want to make it very clear to the Australian Government that PNG is not interested in the PACER Plus because Australia hardly buys from PNG with trade skewed in Australia’s favor for decades.

“PNG’s exports to Australia in 2022 stood at AU$1.6 billion with over 98% being gold and other precious metals whilst Australia's exports to PNG stood at AU$95.9 million.

“So as far as we are concerned, it is pointless to negotiate a PACER Plus Agreement. We would rather go into a new comprehensive economic trade and investment bilateral partnership with Australia which also captures other areas of benefits to PNG given such a vast trade imbalance, like employment of skilled Papua New Guineans, investments in non-extractive sector, and other benefits that we can get from this partnership apart from the trading of goods.

“The PNG-Australia Bilateral Trade Assessment is a priority activity for us with the final report to be released soon by Centre of International Economics. We will also be officially announcing our new Honorary Trade Commissioner to Australia at the end of this month in Brisbane. We want to find potential Australian investors through our Honorary Trade Commission to come and invest in our non-extractive sectors like forestry, fisheries, agriculture, and the tourism sector etc.”

But Australia continues to be an important trading partner to PNG.

“Australia is PNG’s largest trade partner with bilateral trade of over AU$6 billion in 2022 and is a major investor in PNG with investment valued at over AU$24.8 billion in 2022. We are very grateful for this,” Mr Maru said.