Dion wants integration
The National, Thursday November 27th, 2014
PAPUA New Guinea is committed to greater integration and more trade and investment with Melanesian Spearhead Group members, Deputy Prime Minister Leo Dion says.
Addressing Trade Ministers of MSG nations yesterday, he said the state’s commitment was significant in the government’s contribution of more than K2 million funding allocations towards hosting the 2nd MSG Trade and Investment Roadshow in Port Moresby.
He said serious questions need to be asked about the future of the MSG as a sub-regional trading block.
“For us in Papua New Guinea, this Trade Ministers meeting must decide whether we expand and deepen on the current MSG Trade Agreement.
“The truth in our view is that we (MSG nations) have had mixed success in terms of trading in goods. Our trade volumes with each other with respect are negligible.
“Fiji sells up to K100 million in goods to PNG and K50 million the other way.
“PNG’s sales to the Solomon Islands have declined significantly. PNG only sells up to K4 million in goods to Vanuatu annually.
“While our economic, social, cultural and environmental dynamics present unique challenges for our respective governments and our people, we must appreciate we are part of a bigger global community that is opening up for free trade under a more common market.
“As a member of APEC and especially when PNG will for the first time host to APEC in 2018 and therefore graduate into the league of major developing economies, we are seriously rethinking our position of trade and investment within APEC.
“We are dealing with critical issues such as access to bigger markets, aid for trade especially to improve connectivity and the benefits of competition in reducing the cost of living and the cost of doing business as a global competitor.
“We are seeking to process more of our raw materials including processing all our marine products on shore.”
He said unless members are all committed to greater MSG Trade and Investment, it will become increasingly difficult to justify our partnership under the MSG Trading Block. “For the future, continued tariff and non-tariff barriers must either be removed permanently by a fixed cut- off date and reciprocal trade and investment.”