Market diversity a priority

 THE need to diversify the local market to attract foreign investment remains a priority for the Papua New Guinea government, Trade, Commerce and Industry Secretary John Andrias said.

Andrias said that when welcoming over 45 participants who attended a seminar on Pacific Agreement on Closer Economic Relations (PACER) Plus in Port Moresby.

“The need to diversify market entry and access for PNG-made goods and services and to attract multimillion dollar foreign direct investments into the growth areas of our economy remains a priority for the government.”

The participants represented various government departments and agencies as well as the private sector and the civil society organisations.

Andrias said Papua New Guinea was an active participant in global trading system and a party to several regional and international trade agreements. He said the country was determined to fully participate in global value chains and attract foreign direct investment that will underpin our economic expansion and sustainable development.

Andrias said the government was committed to adopting policies that would significantly enhance its participation in regional and international trade.  

There was a strong commitment to address supply-side constraints, expand production capacity and encourage more domestic participation through actively supporting small and medium enterprises.

He said PNG’s participation in regional economic integration was driven significantly by its commercial interests and that PNG would accede to PACER Plus only when there were demonstrable benefits for the country.

Earlier trade agreements such as South Pacific Regional Trade and Economic Corporation Agreement (SPARTECA) had failed to facilitate PNG’s exports to Australia and New Zealand.

For PACER Plus to achieve its objectives and facilitate greater participation of FICs in international trade, the issue of non-tariff barriers had to be comprehensively dealt with and Australia and New Zealand should undertake significant commitments in areas of labour mobility and development assistance.