PNG finalising study on free trade agreement with China

PAPUA New Guinea is in the process of finalising a feasibility study to determine the possibility of concluding a free trade agreement with China, according to PNG Ambassador to China Don Sawong.
Addressing a recent Pacific trade investment promotion event in Shenzen, China, Sawong said the two countries were urged to conclude the joint feasibility studies to start the process of concluding a free trade agreement.
While providing updates at the event, Sawong said a few agreements and memorandum of understandings (MoU) had been signed recently between the two countries that were important and relevant for facilitating trade, investment and economic cooperation between the two countries and included the air services agreement; the feasibility study for a free rrade agreement; the one belt one road initiative, establishment of Bank of China representative office in PNG; and, the protocol on fisheries agreement.
“These specific agreements and MoUs reflect the changing dynamics of our relations with China, and I intend to ensure that these commitments are fully implemented,” he said.
“Our airline, Air Niugini is committed to commencing direct service flights to Shanghai as soon as final details are agreed upon by both authorising agencies.
“The implementation of this service will assist and promote the development of tourism in PNG which will also complement the MoU on immigration and visa arrangements entered between the two countries during president Xi’s state visit in November 2018.”
He said the Bank of China representative office established in Port Moresby this year was a positive development, not only for PNG but the Pacific as a whole.
“This office is essential when dealing with financial services, involving Chinese investors to PNG and the Pacific region as a whole.
“In all, about 77 PNG exporters have been identified and registered with the Chinese authorities under the fisheries protocol and our exporters will export fisheries and marine products directly to the Chinese market soon.”
Sawong noted that PNG’s total estimated value of exports with its trading partners grew from US$34.566 billion (K118.87bil) in 2018 to US$38.53 billion (K132.5bil) last year while its trading relations with China alone was worth around US$2.3 billion (K8bil).