Trade deals a ‘loss maker’ for PNG

Papua New Guinea is currently disadvantaged and suffers net losses from all trade agreements that it is party to, according to a cost benefit analysis report.
Secretary National Planning Hakaua Harry, speaking on behalf of Minister Richard Maru, told a trade-related assistance programme symposium last week that the study revealed an alarming need for a review and new approaches in this domain, calling for immediate action on the part of the government.
Harry said the report revealed a mixed picture pointing out the interim economic partnership agreement with the European Union where PNG enjoyed net benefit and an overall trade surplus.
“With the EU technical assistance, we were able to conduct the first cost benefit analysis of all trade agreements to which PNG is a party to and a report was tabled in the National Executive Council and adopted.
“This led to actions rejecting further economic agreements that are non-beneficial such as the Pacer-Plus. The review findings triggered for more actions to develop our capabilities as well as to safeguard to protect ourselves.”
Harry said the timely EU support and interventions provided the means to do all this.
This also complemented the strategic objectives of the medium-term development plan three, especially targeting economic growth activities under the pillars of increased exports, reduced imports, increased revenue generation creating wealth and improving service delivery.
Harry said that for the first time the Government had developed a trade policy 2017 to 2032.
“Through this project together with its relevant strategic implementation plan soon to be approved also progresses towards the establishment of the National Trade Office with its relevant legislations.
“Also, the establishment of the Trade Information Centre provides a one-stop shop for all the trade-related communication, information and national business intelligence.
“An electronic trade agreement management system will be established in the centre.
“Legislation on trade defence mechanisms and other relevant strategies, guidelines and systems necessary in building the capacity of PNG’s needs to be competitive.
“The training and capacity support will be given to the Department of Trade and Commerce and the trade actors under this project.”