The Minister for International Trade and Investment, Hon. Richard Maru in his meeting recently with the new Chinese Ambassador to Papua New Guinea (PNG), His Excellency Yang Xiaoguang made a commitment to deliver the PNG-China Free Trade Agreement (FTA) feasibility study report by the end of this month.
Minister Maru said: “This report will determine the viability of an FTA between our two countries. This study has been jointly funded by both the Chinese and the PNG Government at the cost of K1 million each. The final work is now being done to complete the report before it is delivered to both Governments in November. On the process of the PNG side, the report, once it is delivered to me, will be submitted to the Cabinet for deliberation and direction and once that is done, we will proceed from there. If the study finds that it is feasible for us and in our national interest to go ahead with the FTA with China then we will recommend that FTA negotiations must commence in the new year.”
Minister stated that China was fast becoming PNG’s most important trading partner.
“For the past five years, trade between PNG and China has been in the favor of PNG recording surplus balance of trade from 2017-2021. In 2020, PNG exported K6.7 billion to China, imported K2.6 billion from China, with a trade surplus of K4.1 billion. China has been ranked 3rd as top export destination for PNG’s merchandise and also ranked 2nd as 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,” said Minister Maru.
Minister Maru further stated: “After PNG signed the Belt and Road Initiative in 2018, PNG became China’s largest trading partner and investment destination in the region. China aided projects such as roads, bridges, hydropower stations, and have made important contribution to the economic development and people’s livelihood. We are encouraging more Chinese investments in all areas including the Special Economic Zones, mining and petroleum, energy, and fisheries.”
“We are determined to grow and deepen our relationship with China and anchor it through an FTA between our two countries if our joint feasibility study confirms that it is viable and in our national interest to enter into an FTA with China,” added Minister Maru.
