Trade & Investment
From The Report: Papua New Guinea 2020
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In recent years Papua New Guinea’s trade and investment environment has been characterised by government policies aimed at generating wider fiscal and social benefits from the country’s resource wealth, while simultaneously growing exports and decreasing imports as it develops a broader economic base. Around 86% of exports from PNG are generated by the extractive industries, principally liquefied natural gas and gold. The government is keen to nurture the development of other high-potential segments such as agri-business – particularly given that around 85% of the population is dependent upon agriculture for their livelihoods. Following uncertainty created by the US-China trade war, the global trade and investment environment has been further clouded by the Covid-19 crisis in 2020. Nevertheless, PNG remains a country with rich potential, thanks to its untapped natural resources and strategic proximity to the high-growth markets of Asia. This chapter contains interviews with Scott Roger, Mission Chief for Papua New Guinea, IMF; and Clarence Hoot, Managing Director, Investment Promotion Agency.

Articles from this Chapter

Overview

Local focus: Emphasis on self-sufficiency grows as the government aims to simultaneously increase exports and decrease imports
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In recent years Papua New Guinea’s trade and investment environment has been characterised by government policies aimed at generating wider – and more immediate – fiscal and social benefits from the country’s resource wealth, while simultaneously growing exports and decreasing imports as it develops a broader economic base. Australia remains a key geopolitical partner; however, it faces growing competition from an increasingly assertive China that continues to spread its influence…

Interview

Building trust: Scott Roger, Mission Chief for Papua New Guinea, IMF, on ensuring the country remains competitive post-Covid-19
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Interview:Scott Roger How can the IMF help developing economies in Asia Pacific mitigate the challenges of the pandemic? SCOTT ROGER: Since the outbreak of Covid-19 the IMF has offered policy advice, financial assistance and other support – including virtual initiatives for government officials to improve skills and develop capacity – to all its member countries. The IMF has provided emergency support to seven countries across the Asia-Pacific region, with others expressing interest in…

Analysis

On equal footing: The government focuses on bolstering local production capacity while pursuing bilateral trade agreements
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In recent years Papua New Guinea has moved away from the long-held policy of tariff reductions towards import substitution and self-sufficiency. As the Covid-19 pandemic underlined the vulnerability of international supply chains, efforts to scale up local industrial production and decrease reliance on imported staples are taking on renewed importance. Policy In August 2017 PNG launched the National Trade Policy (NTP) 2017-32 with a view to increasing exports and supporting the expansion…

Interview

Opportunity to grow: Clarence Hoot, Managing Director, Investment Promotion Authority (IPA), on developing local businesses
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Interview:Clarence Hoot What synergies are expected to arise from the recent agreement between the IPA and the National Superannuation Fund (nasfund)? CLARENCE HOOT: In March 2020 the IPA and nasfund signed a memorandum of understanding (MoU) to enable closer cooperation and allow both organisations to share relevant employer database information to ensure that companies which register with the IPA also sign up for superannuation for the benefit of their employees. It also allows nasfund…

Overview

End of an era: How will China’s slowing economy and the Covid-19 pandemic affect emerging markets that have benefitted from financing and development partnerships?
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For the past two decades Chinese consumer demand, production and investment have acted as major growth drivers for the global economy. The country’s presence is now acutely felt across emerging markets from South-east Asia to the Middle East, and sub-Saharan Africa to Latin America. Outbound flows of foreign direct investment (FDI) and international travellers, coupled with robust demand for natural resources, capital and technology, have seen China influence global market dynamics and reorganise trade flows. In 2019 China accounted for $118bn in outbound FDI and sent 166m tourists abroad. It is also the largest export market for countries…