Papua New Guinea National Trade Policy 2017 - 2032.

The PNG National Trade Policy lays down strategies to become an internationally competitive export-driven economy that is built on and aided by an expanding and efficient domestic market. The timeframe of this policy is 15 years covering the period from 2017 to 2032. The purpose of this policy is to maximize trade and investment by increasing exports, reducing imports on substitute goods, and increasing Foreign Direct Investment that generates wealth and contributes to growing the economy. The main objectives of the PNG National Trade Policy are as follows: (i) to send a strong signal to the international community that PNG is open for business; (ii) to expand market access, inclusive of negotiations of terms that will result in market presence for PNG’s products and services in foreign markets, thereby sustaining trade surpluses on both the merchandise and services accounts; (iii) to protect consumer welfare through strengthened enforcement of intellectual property rights and ensure national standards and compliance measures are respected; (iv) to create an environment in PNG that is conducive for doing business and increasing employment; (v) to identify markets where PNG can receive a cost advantage for products of strategic interest and create secure, predictable market access conditions through trade agreements; (vi) to advocate for the elimination of large scale subsidies provided by trading partners that distort international trading prices on products of strategic interest to PNG; (vii) to mobilize resources to finance needs of the trade and trade-related sectors; (viii) to mainstream the small and medium enterprises into trade deals by negotiating clear terms of establishment of foreign firms in PNG’s markets in sectors of strategic interest through goods and services scheduling commitments.
This policy promotes a dynamic and vibrant private sector that is globally competitive, capable of seizing opportunities in new and emerging markets in addition to traditional markets. The policy measures include creating an enabling environment for private sector growth and development; creating platforms to facilitate public-private partnerships to enhance private sector participation in trade policy formulation, decision-making and implementation, and regular dialogue and information sharing; and enacting legislation, inclusive of safeguards to privatize State-Owned Enterprises in order to encourage competition and facilitate private sector investment in key sectors of the economy. The small and medium enterprises will be provided with opportunities to grow, develop and reap the benefits of trade liberalization as PNG implements the various trade agreements that it is party to. Efficient product development will be created and export of local products to the targeted markets will be promoted in order to increase international trade, diversify the economy and ensure that PNG’s goods are globally competitive.
PNG's economy will be transformed from one dependent on the non-renewable sector, particularly mining and minerals sector to the renewable sector: agriculture, fisheries, forestry, eco-tourism and manufacturing, with the aim of achieving sustainable development. With regards to mining, oil and gas sectors, downstream processing and value adding of mineral and petroleum resources will be promoted. A vibrant and competitive integrated agriculture and food sector will be promoted to enable them to compete evenly against imports to promote food security, rural development and poverty alleviation. Special Economic Zones will be established to promote development of the agri-manufacturing industries. The local stock-feed industry will be supported to supply the poultry and livestock industries. PNG agri-food industries will be protected against unfair trade practices such as dumping and subsidies, and import surges. Price stabilization funds will be reintroduced to protect farmers against agriculture commodity price downturns. Adequate national standards will be established for production and processing agri-food products of importance to maintain food quality and safety along the supply chain.
The growth of sustainable forest industry and downstream processing activities will be promoted in the country to increase jobs in the forestry sector. The linkages with other government agencies, interntional organizations, private sector and non-governmental organization will be increased to encourage information linkages. The transparency will be achieved on international trade of forest and wood products. In marketing and promotion of wood products, measures will be taken to maximize in-country returns and to minimize transfer pricing in the log export trade. Domestic processing of forest products will be encouraged wherever this is economically and financially viable. Further growth and development of the fisheries industry will be supported to maximize the returns on its resource, in terms of jobs and export earnings. Marine industrial zones will be established, including expediting the establishment and operation of the Pacific Marine Industrial Zone (PMIZ) to maintain its competitive position in current and future export markets. Export restrictions will be maintained to encourage downstream processing and value adding onshore. Free Trade Agreements will be concluded with trading partners to gain competitive advantages for PNG’s fish exports.
This policy also contains objectives and measures in relation to environment; labour standards; gender and social inclusiveness; consumer welfare, health and safety; compliance with standards and biosecurity; bilateral, regional and multilateral trade agreements; institutional capacity building; dispute settlement mechanism; trade remedies; research and development.