US, China cooperation vital

By DALE LUMA
PNG will generally benefit from a return to greater trade cooperation between China and the United States, says Institute of National Affairs executive director Paul Barker.
He told The National that at the end of last year a new trade deal was negotiated between China and the US to take effect from the start of this year.
“PNG will generally benefit from a return to greater trade cooperation, and adherence to rules rather than confrontation and uncertainty and encouraging enhanced trade,” Barker said.
“By contributing to lower economic activity, notably in China, where much of PNG exports go, the trade war between the two countries over the past two years has had some impact on PNG.
“The Chinese economy has however been restrained by different factors including high domestic debt as well as restrained international demand contributing to lower demand and prices for a range of global commodities which PNG exports.
“However, the trade uncertainty had provided some opportunities to PNG, with China looking to alternative and nearer sources for some commodities than the US.
“PNG should always be up to speed with political, trade, climate, defence, but also innovation, health and related issues involving the big regional players, notably China and the US, together with Japan, India, Australia and our South East Asian and Pacific neighbours.
“They provide changes and risks, but also opportunities, for trade and investment, cooperation.
“PNG is in the solid position of trade and to cooperate with all its neighbours. But it needs to enhance its position and be less of a passive supplier of raw materials.
“It needs to enhance further value from its goods and services, and better safeguard its natural resources and environment for a more sustainable future.”
, for the enhanced welfare and livelihoods of its current and future population.”