Minister Maru says PNG–NZ trade and investment must improve
Papua New Guinea [PNG] and New Zealand [NZ] have many opportunities to improve their trade and investment relationship.
Minister for International Trade and Investment, Richard Maru, made this clear when he spoke to a visiting delegation from the New Zealand–PNG Business Council. The delegation is in the country to look for new business partners, explore investment prospects, and strengthen economic ties.
Minister Maru said PNG exports goods worth about US$15 million [K63.9 million] to NZ, while NZ exports US$150 million [K638.6 million] to PNG. He said PNG accepts this trade imbalance but wants NZ to help through aid for trade so PNG producers can meet NZ’s strict biosecurity standards and export more goods.
The Minister said he was disappointed that NZ has made very little investment in PNG over the last 50 years.
He said there are many sectors where NZ can invest, especially in chicken and dairy industries, which support PNG’s plan for downstream processing, more exports, and reducing imports.
He said: “NZ is our long and enduring friend, and we will go all out as a government to support their investments in PNG.”
He also noted that Australia is currently PNG’s biggest investor, with more than AU$27 billion [K75.1 billion] invested and is “very aggressive.”
He said NZ must decide whether it wants to remain a small player or become a major investor in PNG.
Minister Maru said now is the best time to invest, with the Papua LNG project starting next year, Wafi-Golpu Mine progressing, and about ten new resource projects coming up. PNG expects steady 5 percent economic growth for the next 20 to 30 years.
He said PNG does not want regional trade deals like PACER Plus but prefers a Comprehensive Economic Partnership Agreement [CEPA] with NZ.
He urged NZ to begin CEPA talks next year. He also raised concerns about the lack of direct flights between the two countries, saying better connectivity is needed for business links to grow.
Minister Maru said it is time for both countries to review their relationship and take bold steps to strengthen trade and investment.