Non-tariff products eyed to boost trade with US

By PETER ESILA
PAPUA New Guinea’s total exports to the United States is US$113 million in 2017, of which US$395,000 comes under the Generalised System of Preferences (GSP).
Edward Gresser, assistant US trade representative trade policy and economies, who came under the GSP, said this during a meeting with PNG Government and private sector representatives.
GSP programme is a US government arrangement that enables market accessibility into the United States by focusing on non-tariff products and providing duty free access. Gerrish said the US tariff schedule included 4084 products, including water, wood, most energy and metalic ores, vanilla, coffee, most fresh fish, coral, turmeric, information technology, medicines and medical equipment and aircraft.
He said 3256 products were eligible for GSP benefits including sugar, fresh and chilled taro, ginger, value-added wood products, jewelry, craft goods, most boat parts and boats.
“We hope that the private sector and the Government will have more information about the GSP system and ways PNG can make more use of it,” Gerrish said.
“There might be businesses thinking about products that might be eligible. The high visibility PNG will have in the Apec year will actually bring a lot of businesses here to think about PNG products.
“That may open up new opportunities.”
Gerrish said GSP was a bridge from resource exports to more intensive value-added products.
“For example, in the wood and timber world, PNG has exported a number of logs,” he said.
“GSP provides a way to get some attraction in the US market in plywoods and some types of furniture by eliminating tariffs on those goods.
“Wood products, jewelry, silver necklaces or other value-added products are on the list.
“It is a way for PNG to broaden its economy and add to the natural resource portfolio.”
Gerrish said the next step was for people to take advantage of the programme. “The challenge in US is we have some of the most-efficient and largest and most globally-active retail industries in the world,” he said.
“Those are the people who buy coffee, vanilla. US is buying millions of dollars of rock lobsters from PNG per year. In terms of imports of sea food, we love it in America.
“These are some of the things to try.”