PNG supports trading system

Business

Papua New Guinea has recently told the WTO (World Trade Organisation) Trade Policy Review panel and member state representatives in Geneva, Switzerland, that trade plays an important part in its economic development efforts and the country supports the WTO trading system.
Under the WTO Marrakesh Agreement, periodic review on compliance and implementation of member states on the multilateral trading system is conducted by the Secretariat and the respective member states are required to respond to the findings of the Secretariat and also respond to written questions by other member states on both the Secretariat and respective Member state’s responses.
The Policy Review Report was presented by Papua New Guinea’s Ambassador and Permanent Representative to the WTO in Geneva Joshua Kalinoe, pictured, on behalf of Foreign Affairs Minister Rimbink Pato yesterday.
Kalinoe submitted that since joining the WTO in 1996, PNG has embraced the Trade Policy Review (TRP) mechanism as an important check and balance process, not only for compliance to the WTO requirements but also for PNG to maximise benefits under the multilateral trading system.
“We have embraced the TPR mechanism as an important check and balance in the WTO, which promotes transparency, accountability and predictability among member countries, including Papua New Guinea, in implementing WTO agreements and ministerial decisions,” he said.
“My country fully supports the rules-based international trading system.
“Despite capacity constraints and structural challenges, we continue to strive to adhere to the practices and procedures of our organisation, because we believe in the important role the WTO plays in supporting economic development and in promoting peaceful relations among its members.”
On trade liberalisation, Kalinoe said that PNG over the last two decades has facilitated progressive, unilateral reduction of most tariffs.
“The Government has tried to compensate the private sector for its loss of protection, by raising the standard of utilities, infrastructure and training to match those of its major competitors,” he said.
“In some areas, the Government has fallen short, and these improvements have taken longer than had been hoped.
“Our efforts continue, and as these continue to feed through into more competitive costs for the private sector, we hope to further increase the openness of our economy.”
On economic performance, Kalinoe said since the last TPR, PNG has seen successful performance outcomes to its economy.
“My country has seen economically successful outcomes since our last TPR,” he said.
“We have achieved average growth of just over 5 per cent, though growth continues to rely on the fortunes of the extractives sector.
“Growth is expected to return to a similar level.
“The country has struggled with foreign exchange shortages in recent times, but this will be resolved in 2019 following an increase in external borrowing, within the parameters of our debt management framework, and due to an increase in mining and petroleum tax receipts.”
On other international commitments and obligations, Kalinoe said Papua New Guinea’s hosting of Asia-Pacific Economic Cooperation meetings last year has provided an excellent opportunity for the country to raise global awareness of its economic and investment potential.
In regard to trade relationships and facilitation, Kalinoe said PNG signed an interim Economic Partnership Agreement (EPA) with the European Union in 2007, to succeed unilateral Cotonou trading preferences.
The Cotonou Agreement is a treaty between the European Union and the African, Caribbean and Pacific Group of States signed in June 2000.
He said duty-free access to the EU market was particularly important for canned tuna.
A large number of jobs in PNG were dependent on this agreement, especially for women.
PNG recently concluded negotiations with the UK to ensure that similar arrangements are in place should the UK leave the EU.
“The interim EPA has been accompanied by a broad range of development assistance to enable the country to benefit from the opportunities the agreement provides,” Kalinoe said.
“The Government sees this partnership with the EU as a strong example of trade cooperation contributing to long-term economic development.”
He said another trading arrangement that PNG was implementing successfully was the Melanesian Spearhead Trade Agreement.
Its members include Papua New Guinea, Solomon Islands, Vanuatu, Fiji and the Kanak and Socialist National Liberation Front (FLINKS) of New Caledonia.
“PNG continues to participate in ongoing negotiations at the WTO, including in the negotiation of a fisheries subsidies agreement, despite the fact that the country does not have a permanent mission in Geneva,” Kalinoe said.
“The country relies heavily on the Geneva office of the Pacific Islands Forum Secretariat to represent its interests and keep us updated on
the state of negotiations as they unfold.
“We are grateful to the Secretariat and donor partners who provide help for capital-based officials to attend negotiating sessions and events such as Geneva Week.”
Kalinoe informed the Group that to pull all of PNG’s trade efforts together at the national level, the Government has established the National Trade Office (NTO) through a cabinet decision two years ago.
“The NTO will be the central coordinating agency that will work with all trade actors to achieve PNG’s goal of becoming an internationally competitive, export-driven economy, built on and aided by an expanding and efficient domestic market,” he said.
“The NTO has been assigned the responsibility of mainstreaming international trade into the national development agenda, and to ensure PNG better complies with its international trade obligations and commitments.
“I wish to reaffirm the importance that Papua New Guinea places in the rules-based multilateral trading system.
“This system faces challenges that may be greater than any that we have dealt with before, but it is of particular importance to the most small and marginalised states that we work together to address these challenges head on.”