Envoy applauds PNG-Australia trade relations

By ZINA KOIM
AUSTRALIAN high commissioner John Feakes says trade and investments are important aspects of the two countries’ shared history.
Feakes said this during the 69th graduation of the University of Papua New Guinea on Friday in Port Moresby.
“A dedicated effort to grow trade and investment is vital to PNG’s future growth and prosperity because it is trade, not aid, that will benefit most PNG into the future,” he said.
Feakes said, sometimes, Australia was primarily seen as a development partner, however, with the growth of PNG’s economy and its population, the Australian aid programme had declined in importance as a source of resources for PNG’s development.
“At Independence in 1975, the Australian Development Assistance Programme represented about 40 per cent of PNG budget. But today, represents fewer than six per cent. This is a good thing,” Feakes said.
He said Australia’s direct investment to PNG was strong.
“In 2022, investment in PNG stood around A$26 billion.
“To put this into perspective, that is more than Australia’s direct investment in India and is more than what we invest in Indonesia and Malaysia combined.
“And that investment is growing with a notable five year trend growth rate of 8.7 per cent.”
Feakes added that Australian and PNG officials were working to finalise the joint feasibility study exploring options and opportunities for growing their trade relationship.
“Because PNG’s prosperity matters to Australia, it is important to Australia,” he said.
Feakes said that private sector was a key stakeholder in the growing economy.
“Our governments are bound by budgets and policy announcements, the private sector setting can adjust flexibly and quickly to changing market demands and act as the engine room for economic growth.
“While there are challenges and functioning supply chains and infrastructure, connections to markets, outcomes are being realised,” he said.
“We see the export of frozen taro to Australia starting, international cocoa prices are at all-time highs and innovative financing mechanisms via the Australian funding revolving fund is boosting PNG coffee exports one bag at a time.”