New policy eyes imports, exports

Business

By SHIRLEY MAULUDU
THE purpose of the country’s first National Trade Policy (2017-2032) is to maximise exports and imports, Commerce and Industry Secretary John Andrias says.
He said the policy aimed to identify trade issues both domestically and internationally.
“You look at balance of trade account, when export earnings is less by volume and by value, and you import more, then you have a deficit balance of trade,” Andrias told The National.
“It also relates to the outflow of foreign exchange and other things too.
“When jobs are exported to other countries, they employ people, the people pay tax to their government and so forth.
“When we try to export, we have to have the capacity and we have to have the type of product that meets international standards.
“The services will also have to meet international standards. That is where competitiveness is developed.
“So through this policy, we have identified all intervention areas for the government to see and provide specific strategies so that we can safeguard Papua New Guinea’s interest.
“The latter outcome would be the net foreign exchange earnings, the net employment creation and improvement in living standards.
“Trade affects everyone right down to the village farmer who exports coffee or cocoa to the world market.
“He will also be affected by price fluctuations and so on.”
Andrias said the challenge now would be to be grow the economy to meet the obligations of the policy.
“We have to grow the capacity of the economy – the productive capacity,” he said.
“We have to increase the GDP not only through the primary sector but also through the secondary sector like manufacturing, and tertiary, which are the services sector where you look at finance, transportation and accounting services.
“When they talk about GDP, it’s basically the output of the economy. It involves the residents, both foreign and locals, and total productive capacity of the economy.”