Bishop discusses trade relations

 AUSTRALIA is Papua New Guinea’s largest trading partner with Australian investment in the country worth more than $A19 billion – almost equalling Australia’s investment in China.

Foreign Affairs Minister Julie Bishop said it was an example of the push on foreign investment Australia was doing in countries in the Asia and Pacific region, including PNG. 

She said it covered areas of military, capacity building, economy and trade.

Bishop was addressing members of the Lae Chamber of Commerce and Morobe government during a luncheon at the Lae Yacht Club.

Bishop said the relationship with PNG in the past 40 years was based on aid which had seen A$520 million coming in yearly. This would now be changed to economic partnership.

She said the Government must compliment foreign investment by improving its infrastructure and its capacity.

“Yes we are the 12th largest economy in the world and 53rd largest population, we are facing challenging times with the global economy not recovering the way some would like,” she said.

“And in Australia we have to make sure that we create an environment that grows our economy and ensure prosperity.”

Bishop said PNG would benefit from trade agreements but should change from its approach just like the Australian government had done.

“Foreign investment is essential to drive economic growth, Australia was built on direct foreign investment.

“The private sector is the fundamental driver of economic growth.”