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Trade Policy Review Body    
 
* In Original language only/ En langue originale seulement /En el idioma original solamente . 
  
PAPUA NEW GUINEA 
DRAFT MINUTES  OF THE MEETING* HELD ON 8 AND 10 MAY 2019  
Delegations are invited to submit factual corrections, if any, on their own statement to the 
Secretariat ( Mrs Barbara Blanquart: barbara.blanquart@wto.org , or to  tprd@wto.org ) no later 
than 12 June 2019 . 
 
Organe d'examen des politiques commerciales  
 
PAPOUASIE -NOUVELLE -GUINÉE 
PROJET DE COMPTE REN DU DE LA RÉUNION* TENUE LES 8 ET 10 MAI 2019  
Les délégations sont invitées à soumettre  leurs éventuelles corrections factuelles concernant leurs 
propres déclarations au Secrétariat ( Mme Barbara Blanquart: barbara.blanquart@wto.org , ou 
tprd@wto.org ) le 12 juin 2019  au plus tard.  
 
Órgano de Examen de las Políticas Comerciales  
 
PAPUA NUEVA GUINEA 
PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 8 Y 10 DE MAYO DE 201 9 
Las delegaciones pueden enviar a la Secretaría (Sr a. Barbara Blanquart: 
barbara.blanquart@wto.org , o tprd@wto.org ) a más tardar el 12 de junio de 2019  las 
correcciones fácticas que deseen introducir en sus propias declarac iones.  
 
 
_______________  
 
  WT/TPR/W/ 166 • Papua New Guinea  
 
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  TRADE POLICY REVIEW  
PAPUA NEW GUINEA 
DRAFT  MINUTES OF THE MEET ING 
Chairperson: H.E. Mr. Manuel A.J. Teehankee (Philippines)  
CONTENTS  
 
1   INTRODUCTORY REM ARKS BY THE CHAIRPERSON  ................................ ......................  3 
2   OPENING STATEMEN T BY THE REPRESENTAT IVE OF PAPUA NEW GUI NEA ..................  5 
3   STATEMENT BY THE  DISCUSSANT  ................................ ................................ ...............  9 
4   STATEMENTS BY ME MBERS  ................................ ................................ ........................  13 
5   REPLIES BY THE R EPRESENTATIVE OF PAP UA NEW GUINEA AND AD DITIONAL 
COMMENTS  ................................ ................................ ................................ .....................  29 
6   CONCLUDING REMAR KS BY THE CHAIRPERSO N ................................ ........................  34 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies provided 
by Papua New Guinea are reproduced in document WT/TPR/M/387/Add.1 and will be available online 
at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The third Trade Policy Review of Papua New Guinea was held on 8 and 10 May 2019. The 
Chairperson, H.E.  Mr. Manuel Teehankee  (Philippines), welcomed the delegation of Papua New 
Guinea, headed by H.E. Ambassador Joshua Kalinoe; the rest of the delegation; and the discussant, 
H.E. Mr. Martin Kreitus (Latvia).  
1.2.  The Chairperson recalled the purpose of trade policy reviews and the ma in elements of 
procedures for the meeting. The report by Papua New Guinea was contained in document 
WT/TPR/G/387 and that of the WTO Secretariat in document WT/TPR/S/387.  
1.3.  Questions by the following delegations were submitted in writing before the deadline:  European 
Union; United States; Japan; Australia; China; Iceland; and Brazil. The following delegations 
submitted written questions after the deadline: Philippines; Chinese Taipei; Thailand; Canada; and 
the Republic of Korea.  
1.4.  At the time of Papua New Guine a's (PNG) previous Trade Policy Review in 2010, Members had 
complimented it on its prudent macroeconomic policies and structural reforms, which had helped it 
to achieve reasonably strong rates of economic growth, notwithstanding the global financial crisis . 
They had recognized that the economy had become more outward -oriented, owing to structural 
reforms, including trade liberalization, and that its foreign investment regime had generally 
remained open.  
1.5.  For the current Review, as noted in the Secretariat's  report, PNG's economy grew at an annual 
average rate of 5.2% during 2010 -18, driven largely by a surge in liquefied natural gas (LNG) 
exports. Nonetheless, real GDP growth decelerated to an estimated 0% in 2018, mainly due to low 
commodity prices, a major  drought in 2017 and a big earthquake in February 2018. These adverse 
shocks also weakened PNG's external position and created fiscal challenges. As indicated by the 
advance written questions, Members were looking forward to learning more about the PNG 
authorities' response to the downturn, and their assessment of the economic outlook.  
1.6.  With regard to trade policy, at the time of the previous Review, Members had welcomed PNG's 
plans to formulate and implement a comprehensive trade policy, with a view to redu cing its heavy 
reliance on mineral resources and diversifying its economy. Members had also commended PNG's 
liberalization efforts in the telecommunications sector and its Tariff Reduction Programme, which 
had resulted in a fall of the simple average appli ed MFN tariff rate from 20.5% in 1999 to 5.1% in 
2006. At the same time, Members had enquired how trade policy might address the major economic 
challenge posed by the so -called "Dutch disease" effect. More specifically, the appreciation of the 
national cur rency, owing to large inward foreign direct investment in LNG and other mining projects, 
tended to reduce the competitiveness of the non -extractive sectors, thus possibly jeopardizing 
efforts to diversify the economy.   
1.7.  During this Review, PNG adopted its first ever National Trade Policy, covering the period 2017 
to 2032, with the aim of becoming an internationally competitive, export -driven economy built on 
and aided by an expanding and efficient domestic market. PNG's tariff is now based on HS2017, and 
the simple average applied MFN rate stood at 3.9%, down from 5.1% in 2010. Nevertheless, some 
Members noted that PNG had recently raised tariffs on more than 300 tariff lines.  
1.8.  In June 2016, PNG accepted the Protocol Amending the TRIPS Agreement, which took effect 
on 23 January 2017. It also notified its Category A commitments under the Agreement on Trade 
Facilitation (TFA) and deposited its instrument of acceptance of the TFA in March 2018. However, 
PNG was yet to submit its Category B and C commitments unde r the TFA.  
1.9.  The Chairperson drew Members' attention to some additional issues raised by them in their 
advance written questions for this TPR. These included: a poor notifications record; the sanitary and 
phytosanitary framework; planned amendments to the i nvestment regime; the intellectual property 
rights framework and PNG's plans to join certain WIPO treaties; and policies aimed at improving 
essential infrastructure, notably electricity, telecommunications, and transport.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  1.10.   This meeting was a good opportunit y for Members to discuss in greater detail issues of interest 
to them and of systemic importance to the multilateral trading system. The Chairperson was looking 
forward to a productive exchange of views.  
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE OF PAPUA N EW GUINEA 
(H.E.  AMBASSADOR JOS HUA KALINOE)  
2.1.  On behalf of the Papua New Guinea Government, let me first express our sincere gratitude to 
the Director General, Mr. Roberto Azevedo, and the WTO Secretariat for the technical support that 
has been provided to Pa pua New Guinea to ensure the country is able to implement its obligations 
and commitments under the different agreements of the WTO.  
2.2.  We extend our thanks also to the Chair of the Trade Policy Review, His Excellency Manuel 
Teehankee of the Philippines; the discussant, His Excellency Martins Kreitus of Latvia, for his leading 
role in the whole process; the WTO staff for preparing the Secretariat report and Mr. Dan 
Hetherington for working with my delegation to prepare the Government report in compliance with 
Annex 3 of the Marrakesh Agreement.  
2.3.  I would like to extend my apologies, on behalf of the Minister of Trade, Honourable Rimbink 
Pato, for not attending due to other pressing commitments back home.  
2.4.  This is our third Trade Policy Review since joining the WTO  on 9 June 1996. We have embraced 
the TPR mechanism as an important check and balance in the WTO, which promotes transparency, 
accountability and predictability amongst Member countries, including Papua New Guinea, in 
implementing WTO Agreements and Minist erial Decisions.  
2.5.  Let me at this juncture congratulate the WTO and its Members on the 25th anniversary of the 
Marrakesh Agreement and 30 years of the existence of the Trade Policy Review Mechanism.  
2.6.  Papua New Guinea is diplomatically represented from Brussel s, we don't have a Permanent 
Mission in Geneva. 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 Organizat ion because we believe in the important role the WTO plays in supporting 
economic development and in promoting peaceful relations amongst its Members.  
2.7.  Since the last review held between 2010 and 2011, there have been some important changes, 
most notably t he launching of the country’s first trade policy in July 2017. This is a landmark 
achievement for my country. This policy provides a comprehensive framework to enable Papua New 
Guinea to become an internationally competitive, export -driven economy, built o n and aided by an 
expanding and efficient domestic market. The objectives of the new policy are:  
• To signal the country's openness to international partners;  
• To improve market access for exports;  
• To protect consumers through enforced standards and intellect ual property rights;  
• To create a conducive business environment;  
• To identify new export markets and improve access through new agreements;  
• To advocate for the elimination of large subsidies that distort international trade;  
• To ensure that trade -related sectors can access necessary financial services; and  
• To mainstream PNG's small and medium enterprises (SMEs) into international trade.  
2.8.  The other major achievement of PNG over the last two decades has been a 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. In some areas, the Government has fallen short, and these imp rovements 
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.  
2.9.  The years since the last TPR have been  an economically successful time for PNG. We have 
achieved average growth of just over 5%, though growth continues to rely on the fortunes of the 
extractives sector. Growth is expected to return to a similar level once the effects of the drought in 
2017 an d a magnitude 7.5 earthquake in February 2018 have subsidized. 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 manag ement framework, and due 
to an increase in mining and petroleum tax receipts.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  2.10.   Papua New Guinea's hosting of Asia -Pacific Economic Cooperation (APEC) meetings 
throughout 2018 has provided an excellent opportunity for the country to raise global awareness of  
its economic and investment potential. This series culminated in the Economic Leaders’ Meeting in 
November, where a number of commitments were made by leaders including the United States, 
Australia, Japan, to work together with Papua New Guinea to look at  the national electricity grid. We 
hope these commitments will transpire into positive outcomes. This builds on PNG’s success in 
hosting the 8th ACP Summit of Heads of State and Government in 2016 — we place a lot of emphasis 
on the cooperation between APE C states and the EU.  
2.11.   With 80% of Papua New Guineans living in rural areas and engaging in non -monetized 
subsistent agricultural activities, the Government must find ways to promote inclusive growth and 
most importantly equal participation. One of the measu res taken to address this challenge is that 
the Government is currently making amendments to the Investment Promotion Act in order to assist 
MSMEs to become competitive in business activities that tend to be smaller -scale, onshore, and 
where PNG citizens h ave already demonstrated capability. These changes will not affect foreign 
investors in the country, but rather complement and further assist local -foreign partnerships and 
participation.  
2.12.   We do also place a lot of emphasis on mixing the domestic sectoral p olicies towards achieving 
our trading ambitions.  
2.13.   On agriculture, more than four fifths of Papua New Guineans are farmers, whether 
commercially or simply to provide their households with food. So agricultural policy remains a very 
high priority of Governme nt. The main crops that we grow commercially are oil palm, coffee, cocoa, 
coconut, rubber, vanilla and tea. During the review period, agriculture has been guided by the 
National Agriculture Development Plan. Its main objectives are to reduce costs and impr ove quality, 
to increase the incomes of people dependent on agriculture, to improve sustainability and to increase 
the opportunity for women to make decisions in agriculture.  
2.14.   Since 2011, the Government has been working with the World Bank on the Productive  
Partnerships in Agriculture Project, with generous support from the International Fund for Agriculture 
Development and the European Union. This has been a great success, increasing coffee farmers’ 
income by 76%, and increasing cocoa yield by more than 300 %. 
2.15.   On forestry, around two thirds of PNG is covered by forests, and the country is among the 
twenty in the world with the largest forest area. 3.2% of the PNG’s total exports are timber products. 
However, sustainability and value -adding of the forestry res ources in compliance with domestic and 
international standards is a major objective for the Government. We have set a target to reduce the 
rate of harvest of primary forest from 9% to 5% by 2022. The Government’s long -term policy is to 
increase downstream processing of forestry products — since only 10% of logs are currently 
processed onshore.  
2.16.   PNG collaborates with a wide range of international institutions and partners to improve the 
sustainability of the sector, tackle climate change caused by deforestati on and to improve policing 
of illegal logging.  
2.17.   Papua New Guinea’s fisheries are an enormously valuable resource that provides livelihoods 
to many within our population, varying from industrial processing of fish through to artisanal and 
subsistence fishers  across our 600 outlying islands. The Government is deeply committed to the 
sustainable management of these resources and is pleased to note that all of our assessed stocks 
are all currently healthy. The health of fish stocks is maintained not only by the formal legal system, 
but also by traditional community systems of stock management, which have proved very effective 
in protecting coastal fisheries.  
2.18.   The Government is also actively committed to the eradication of illegal, unregulated and 
unreported fishin g. PNG collaborates with a number of partners to conduct joint surveillance 
operations throughout the year, and the Parties to the Nauru Agreement now require all 
purse -seiners to carry observers.  
2.19.   The negotiation of a fisheries subsidy's agreement, to fulf il Sustainable Development Goal 
14.6, is currently the country’s highest priority within the WTO. However, we hope that the WT/TPR/W/ 166 • Papua New Guinea  
 
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  agreement we reach will also support two other Sustainable Development Goals. SDG 14.7 aims for 
us to “increase the economic benefit s to Small Island developing States and least developed 
countries from the sustainable use of marine resources”, and SDG 14.B seeks to “provide access for 
small -scale artisanal fishers to marine resources and markets”. We hope WTO Members will continue 
to keep these objectives at the forefront of their minds during their work ahead.  
2.20.   Manufacturing contributes 6% of GDP yet accounts for approximately half of all formal sector 
jobs. Manufacturing growth is a powerful method for increasing formal sector employm ent. In 
addition, because several important sectors in PNG predominantly employ women, it is also an 
important means of enabling more women to move into formal sector employment and reduce the 
disparity with men.  
2.21.   Increasingly, services provide the largest part of the country’s GDP — in 2018, this share had 
risen to 41%. Retail and wholesale trade is the most important subsector.  
2.22.   As another Member has raised in one of their questions, PNG has long been one of the most 
underbanked countries in the world. Howe ver, during the review period, we have achieved a great 
deal to improve financial inclusion, including for women in the first phase of the National Financial 
Inclusion Strategy, 1.2 million bank accounts were opened, representing 15% of the population, 
more than a third of whom are women. The next phase aims to create an additional 2 million 
accounts, of which half will be women. In addition, Australia has generously supported the 
Microfinance Expansion Project, through which 200,000 people have received fi nancial literacy 
training. Almost half of these have been women.  
2.23.   ICT is another area in which Papua New Guinea has lagged many countries but is now taking 
important steps to create opportunities. As a small island developing state, PNG’s remoteness is a 
constraint that we cannot change — but technology can reduce the costs created by our remoteness. 
At present, the country relies on an inadequate fibre optic link to the global internet, relying on 
expensive satellite capacity to make up the shortfall. But b y 2020, the Coral Sea Cable System will 
come into operation, creating a modern link between Port Moresby in Papua New Guinea, Honiara 
in Solomon Islands, and Sydney in Australia. As several Members have implied in their questions, 
the Government will have to consider carefully how to regulate the industry to ensure that the 
benefits of this investment are passed on directly to consumers.  
2.24.   On mining, oil, and gas, the Government’s long -term strategy is to reduce reliance on the 
extractives sector through dive rsification. However, at present extractives are a very important 
source of government revenue, and the project cycle of major initiative has a significant 
macroeconomic effect. We need to manage this moving forward carefully.  
2.25.   Mining in particular has dive rsified since 2011, with exports of nickel and cobalt beginning the 
following year. Prospects for future expansion of the gas industry are strong, and three new projects 
are at an advanced stage of planning.  
2.26.   On trade negotiations, PNG signed an interim Eco nomic Partnership Agreement (EPA) with 
the EU in 2007, to succeed unilateral Cotonou trading preferences. Duty -free access to the EU market 
is particularly important for canned tuna. A large number of jobs in PNG are dependent on this 
agreement, especially  for women. 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. The Government sees this partnership with the EU as a strong example of trade 
cooper ation contributing to long -term economic development.  
2.27.   The Melanesian Spearhead Group comprises Papua New Guinea, Solomon Islands, Vanuatu, 
Fiji and the Kanak and Socialist National Liberation Front (FLNKS) of New Caledonia. Over the last 
26 years, the trad ing relationship between the group has become increasingly close through three 
successive free -trade agreements. In 2016, this integration process culminated in a comprehensive 
agreement on goods, services, investment and labour mobility.  
2.28.   PNG continues to participate in ongoing negotiations at the WTO, including in the negotiation 
of a fisheries subsidy's agreement, despite the fact that the country does not have a Permanent 
Mission in Geneva. 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. We are very WT/TPR/W/ 166 • Papua New Guinea  
 
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  grateful to the Secretariat and donor partners who provide help for capital -based officials to attend 
negotiating sessions an d events such as Geneva Week.  
2.29.   Trade facilitation continues to be an important agenda for PNG. In March 2018, PNG ratified 
the WTO Trade Facilitation Agreement. It held its first formal National Trade Facilitation Committee 
meeting shortly thereafter, and a  work plan was adopted in principle to address the gaps in 
compliance with the Agreement. At the moment, PNG’s TFA Category B and C commitments are 
awaiting the Cabinet's endorsement before officially being notified to the WTO.  
2.30.   On a related issue, PNG’s bi osecurity measures continue to be based on international 
standards and consistent with the WTO SPS Agreement. Import conditions are therefore based on 
import risk assessments to ensure that biosecurity measures do not become unnecessary barrier to 
trade. T here are current efforts by the relevant agency to adopt modern technology to accelerate 
the processing of import and export applications.  
2.31.   On intellectual property, PNG has prepared a National IP Plan to address the national 
challenges of IP. Through the i mplementation of the National IP Plan we envisage the establishment 
of an enabling legal framework to promote IPR, raise awareness and improve enforcement of IPR 
rights.  
2.32.   Our national modernization efforts to facilitate trade and investment have been aimed at 
transitioning from manual paper -based processes to automation. One of the major work streams 
currently underway is to ensure that the Electronic Transmission Bill is passed through Parliament. 
Once legislated, this Bill will provide the legal underpinni ng for electronic data exchange and 
interoperability between trade actors.  
2.33.   In a way of conclusion to pull all of our trade efforts together at the national level, the 
Government has established the National Trade Office through an Policy Decision in 2017. 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. 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.  
2.34.   Let me once again thank the Members of the WTO because of ou r common aspiration to 
achieve free and open trade. I would like to thank the many development partners that have 
contributed to trade -related technical assistance to Papua New Guinea over this period. We look 
forward to continuing this productive partners hip. The Government has included an Annex in its TPR 
report highlighting current priority areas. Thank you.  
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  3  STATEMENT BY THE DIS CUSSANT  
Introduction  
3.1.  I am honoured for this opportunity to take on the role of discussant for the third Trade Policy 
Review o f Papua New Guinea.  
3.2.  I welcome H.E. Ambassador Joshua Kalinoe, Permanent representative of Papua New Guinea 
to the WTO and his colleagues from Port Moresby.  
3.3.  I would like to thank the WTO Secretariat for the comprehensive Report and Papua New Guinea 
for the  Government report. Both were really helpful in my preparations for this meeting.  
3.4.  Please let me recall that as the discussant for this review, I am speaking entirely in my personal 
capacity.  
Wider context  
3.5.  PNG is one of the most naturally beautiful countrie s in the world with a rich natural diversity 
that also extends to its people, with over 800 indigenous languages and cultures. PNG has a 
population of 8.3 million; they are predominantly rural, and many follow traditional lifestyles. PNG 
is rich in natural  resources, including minerals, oil and gas, forests and fisheries. PNG is an open, 
trade -oriented economy with a significant share of merchandise exports. As a small economy with 
limited administrative capacity, PNG values rules -based international tradin g system.  
3.6.  In 2017, PNG adopted its first ever National Trade Policy, covering the period 2017 -2032. It is 
a "home -grown" policy, developed with support from the EU. It also foresees institutional changes 
to separate function of external trade from commerc e and industry by establishing of a National 
Trade Office (NTO). It complements existing strategic development framework of Vision 2050, 
Development Strategic Plan 2010 –2030, the Medium Term Development Plan and other policy 
planning documents for economic  development and macroeconomic stability. PNG has set ambitious 
2030 targets in many sectors, that were very well outlined in the Secretariat’s report.  
3.7.  I welcome PNG’s readiness to engage in the global conversation about maintaining relevance 
of the multil ateral trading system. In recent years, PNG has strengthened its position as a regional 
and international player by hosting several major international meetings, including ACP Summit of 
Heads of State and Government in 2016 and APEC Leaders' Meeting in 201 8. 
3.8.  The absence of a Geneva Mission makes PNG's multilateral participation more challenging and 
involves prioritization of its engagement in negotiations. Fisheries subsidies negotiations are 
currently the top priority, but the PNG also takes great interest  in other topics. PNG also seeks the 
opportunities for officials to participate directly in negotiations on a temporary basis to build the 
experience of its trade staff with a long -term objective of establishing a permanent presence in 
Geneva.  
3.9.  PNG has bene fitted substantially from trade -related technical assistance over the course of the 
review period. In its report, PNG summarizes areas in which trade -related technical assistance could 
be well used.  
Economic environment  
3.10.   PNG's economy has performed reasonab ly well since the last Review. Annual real GDP growth 
averaged 5.2% during 2010 -18, fluctuating from 15.4% to almost zero. Price changes in key export 
commodities, wider economic impact of drought and earthquake, as well as increased LNG 
production contrib uted to such variations. For 2019, the IMF predicts the economy will recover to 
3.8%. PNG has also made notable development progress over the last few years – the GDP per 
capita has significantly increased from USD 1,672 in 2009 to USD 2,556 in 2017. Never theless, 
poverty alleviation still remains one of the country's major challenges.  
3.11.   PNG's merchandise exports almost doubled, mainly driven by increase in exports of LNG and 
other mineral products which now accounts for about half of total merchandise export s. The WT/TPR/W/ 166 • Papua New Guinea  
 
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  composition of imports remained largely unchanged across commodity groups. Merchandise exports 
and imports are also highly concentrated geographically.  
3.12.   At the time of previous Review, a major economic challenge was managing potential risks 
from extr active industry boom and its effects on national currency and development of other sectors. 
PNG recognizes that significant challenges remain in this area.  
Trade and investment regimes  
3.13.   PNG has notified its Category A commitments under the TFA in 2016, and  deposited its 
instrument of acceptance of the TFA last year. PNG accepted the Protocol Amending the TRIPS 
Agreement in 2016 which took effect in 2017.  
3.14.   The Secretariat reports that PNG has outstanding notifications in several areas. The 
authorities have re quested technical assistance from the Secretariat in this regard. Lack of 
notifications is also noted in Members’ questions. PNG has regularly submitted tariff data to the WTO 
Integrated Data Base.  
3.15.   PNG has four RTAs in force, encompassing 41 partners (coun ting the EU as 28), Ambassador 
Kalinoe already outlined the advantages that RTAs provide to the country.  
3.16.   PNG's investment regime is generally open. PNG improved its ranking in the World Bank's 
latest Ease of Doing Business report to 109th (from 145th in 20 16). In 2018, changes to legislation 
came into force to create a transparent and competitive process for public private partnership (PPP) 
projects. PNG also grants various tax incentives both to local and foreign investors. Several Members 
enquired about p lanned amendments to the Investment Promotion Act and land tenure regime.  
Trade policies and practices by measure  
3.17.   Taxes on international trade accounted for approximately 20% of fiscal revenue during the 
period under review. PNG has continued implementation of a gradual MFN tariff reduction with a 
simple average of 3.9%, down from 5.1% in 2010. Several Members have noted recent tariff 
increases on certain imports and enquired about suspension of the last phase of tariff reduction 
programme and ongoing evaluation of PNG’s autonomous tariff liberalization. Several Members 
requested an update on the status of the fresh food ban that was imposed in 2015, but mostly lifted 
in January 2016.  
3.18.   As currently PNG has no legal and institutional frameworks of  anti-dumping, countervailing, 
and safeguard measures, some Members enquires about status of draft legislation.  
3.19.   With regard to developments in measures directly affecting exports, unprocessed old growth 
logs are subject to a progressive export tax since J anuary 2018. A ban on exports of round logs is 
scheduled to come into effect in 2020. PNG has notified repealing of an export subsidy provision as 
of 1 January 2015.  
3.20.   PNG's national standards body and TBT National Enquiry Point – National Institute of 
Stand ards and Industrial Technology (NISIT) – was allocated additional resources in 2019 budget to 
increase its personnel and build capacity. PNG has not made any TBT notifications, nor has it been 
the object of any TBT -related specific trade concerns since its  last Review.  
3.21.   The Secretariat report notes that there was little change to PNG's SPS regime during the 
period under review; the legislation in force remains outdated, and a range of capacity weaknesses 
are yet to be addressed. PNG has not made any SPS noti fications nor has it been the object of any 
SPS-related specific trade concerns since its last Review. Members questions in the area of SPS are 
related to implementation of the International Standard on Phytosanitary Measures (ISPM 32), 
transparency and sc ientific basis for biosecurity risk determinations.  
3.22.   In 2018, PNG has introduced a significant reform of public procurement and institutional 
framework is being adjusted accordingly. PNG is not a party or an observer to the plurilateral 
Agreement on Governm ent Procurement.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  3.23.   In 2016, PNG accepted the Protocol Amending the TRIPS Agreement. While no changes to the 
legal and institutional framework governing Intellectual Property (IP) took place during the review 
period, PNG is working on amendments to the existi ng legal framework and new "National IP Plan" 
to enhance the utilization of IP and enabling PNG to meet its relevant international obligations. IP 
enforcement continues to face challenges. Advancing of the protection of traditional knowledge is 
one of the Governments priorities. Several issues related to IPRs, including PNGs plans to join 
international treaties on IP, are raised by Members in their questions to PNG.  
Trade policies by sector  
3.24.   Agriculture accounts for 24% of GDP (including forestry products) a nd 13% of exports. 82% 
of Papua New Guineans farm, whether commercially or to provide their households with food. 
Adverse weather conditions in 2016 -17 contributed to fall in agriculture exports during the review 
period. Agricultural policy relies on a sel f-sufficiency -driven notion of food security using high tariff 
barriers at the border for the targeted products (for example pork, poultry, sugar). The simple 
average MFN applied tariff on agriculture (WTO definition) is 10.1%. Members have raised question s 
on levels of tariff protection in the agricultural sector. PNG is the only Pacific Island that has an 
aggregate measure of support (AMS) entitlement. It has recently submitted its first domestic support 
notification to the WTO.  
3.25.   PNG has extensive and valu able fisheries resources, including around 15% of the world's tuna 
stock. In 2017, marine product exports amounted to 6% of total merchandise exports. Fish and 
fishery products are subject to an average MFN tariff rate of 14.1%, with rates ranging up to 25 %. 
PNG is deeply committed to the sustainable management of its fisheries resources. Ambassador 
Kalinoe already has emphasized the importance PNG attaches to meeting SDG 14.6. Access to the 
EU market via Interim Economic Partnership Agreement (IEPA) facili tated development of fish 
processing industry. On fisheries, Members enquiries concerns conservation of fish stocks; policy 
enforcement, control and surveillance capacity, and on information sharing on fisheries; some 
Members ask about plans to raise licen ce fees for foreign -flagged fishing vessels.  
3.26.   PNG is a globally significant exporter of forestry products. Tropical round logs, timber products 
totals 3.2% of the PNG’s exports. Progressive export tax for unprocessed logs and planned ban on 
exports of round  logs supplemented by a moratorium on the issuance of new logging permits aims 
at reducing of excessive logging and increasing the export share of processed timber. Members were 
interested about PNG’s stance on initiatives for sustainable management of for ests. 
3.27.   Mining, oil, and gas remains an important contributor to the economy with the gas industry 
being the key driver for economic growth in the review period. PNG policy objectives are to double 
mineral exports and encourage downstream processing and valu e adding of mineral and petroleum 
resources. The prospects for continued expansion of the gas industry are strong, with three new 
projects at an advanced stage of planning, promising increased opportunities for downstream 
processing into liquefied petroleu m gas (LPG). Oil production continued to decline during the review 
period. In their questions, Members enquired about mining development strategy, and state 
participation and third -party access policy in oil and gas projects.  
3.28.   In the energy sector, private sector plays an important role in electricity production. About 
half of all electricity is generated by hydropower. Access to reliable, affordable energy sources could 
be instrumental to job creation and rise of national income. Promotion of private -sector  participation 
through PPPs could contribute to development of generation and transmission infrastructure. 
Members have noted PNG’s ambitious objectives for increase in energy production, including 
increased share of renewables in the energy mix. Questions  also were raised on progress in national 
grid financing and development.  
3.29.   The manufacturing sector of PNG has significant importance in employment – about half of 
all formal sector jobs. Specialization in industries where PNG has a comparative advantage an d 
measures to increase the competitiveness and improve the business environment will be 
instrumental for achieving the goal to double the manufacturing sector's contribution to the GDP by 
2025.  
3.30.   The services sector is, increasingly, the largest contributor to GDP with a 41.2% share in 
2018. PNG is a net importer of services, with a deficit of USD 1.3 billion in 2018.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  3.31.   According to the IMF, PNG's banking system is sound, profitable, and well -capitalized. Several 
significant initiatives have been carried out in  the review period to promote financial inclusion. 
Project for financial literacy training is being carried out with the assistance from Australia.  
3.32.   Reform in PNG's telecommunications sector has been praised in the previous Review. 
Competition led to subst antial upgrade in the quality and reach of services and a significant decline 
in cost. However, access to the Internet at a reasonable speeds and international connectivity 
remains inadequate. A new submarine fibre optic cable connecting Port Moresby and S idney is 
expected to become operational by 2020. PNG clearly sees advantages that ITC could provide to 
advance it competitiveness. Several Members raised questions about fair access to the new 
international submarine cable as well as planned regulatory fra mework reforms and measures to 
foster competition in the mobile telephony segment.  
3.33.   The Government is currently preparing e -commerce legislation to create an enabling 
environment for business. This will contribute to the creation of the country's single win dow, in line 
with the TFA. PNG notes that meaningful engagement has not so far been possible in the MC11 joint 
initiative on e -commerce, although the Government aims to follow future developments more 
closely.  
3.34.   In 2013, the National Transport Strategy was p ublished. Improvements in transport 
infrastructure could contribute significantly to development of domestic and international trade. 
Water transportation is important both for the economy and daily life of significant number of PNG’s 
households. High cost  and lack of competition in maritime transport were noted in Members 
questions; Members also enquired about plans to open coastal shipping to foreign operators.  
3.35.   Papua New Guinea acknowledges enormous untapped potential in the tourism sector, 
currently cont ributing 1.8% to GDP. The country's tourism policy is being updated to reach an 
ambition target of 1.5 million visitors in 2030 – almost a twelvefold increase if compared to 2008. 
The Tourism Sector Development Project (TSDP) includes substantial investmen t in infrastructure. 
In this context, Members enquire about incentives for foreign investors to meet the investment 
demands.  
Conclusions  
3.36.   In conclusion, I would like to note that this Review shows that PNG has comprehensive set of 
policies for economic and social development with a clear vision on how trade policy could contribute 
achieving ambitious objectives PNG has set for itself. I beli eve, the new National Trade Policy was a 
very useful tool in the preparation preparation for this Review.  
3.37.   Trade Policy Review also gives a useful opportunity to look at the practical effects of various 
policy measures, as it takes place almost in the middl e of timeframe for Development Strategic Plan 
2010–2030. Some of the challenges that were mentioned in the previous TPR of 2010 we observe 
also today.  
3.38.   In several areas, capacity constraints and lack of funding or administrative resources is a 
particular ch allenge. Throughout the Government report, we see areas where trade -related technical 
assistance and development assistance is being successfully used. PNG aims to improve alignment 
between donor programmes and Government planning priorities.  
3.39.   I trust that this TPR will be useful in assessing the progress achieved and help identify areas 
where more attention is needed. Thank You.  
  WT/TPR/W/ 166 • Papua New Guinea  
 
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  4  STATEMENTS BY MEMBER S 
EUROPEAN  UNION  
4.1.  The EU welcomes this opportunity to discuss the developments in Papua New Guinea’s trade 
policies and practices since the previous Trade Policy Review in 2010. The timing of this TPR coincides 
with the third Symposium on Natural Disasters and Trade and the Geneva Week for non -resident 
Members. This provides a good opportunity for small disaster -prone countries to discuss the link 
between trade and disaster resilience.  
4.2.  The EU would like to start by highlighting some of the main positive developments that we 
have seen during the review period.  
4.3.  The EU is encouraged by Papua New Guinea’s increasing openness to international trade: that 
during the review period, Papua New Guinea’s merchandise exports almost doubled from 
USD 5.5 billion in 2012 to USD 9.9 billion in 2017. As noted by the Chair and the Discussant, the 
long-term support from the European  Union and an extensive consultation process have culminated 
in the country's first National Trade Policy in 2017, which will coordinate Government action for the 
next 15 years, covering the period 2017 -2032, with the aim of making Papua New Guinea "an 
internationally competitive export -driven economy that is built on and aided by an expanding and 
efficient domestic market".  
4.4.  The EU also strongly welcomes Papua New Guinea’s leading role towards Pacific regional 
integration, as demonstrated by Papua New Guine a’s hosting last year of the Asia -Pacific Economic 
Cooperation (APEC) meetings.  
4.5.  Papua New Guinea is a very good example of economic development as a result of effective 
EU-Pacific co -operation. The EU is a reliable and major supporter of Papua New Guinea’s  economic 
development and a key partner in facilitating Papua New Guinea’s integration into the global 
marketplace.  
4.6.  Following the signature of the Economic Partnership Agreement (EPA) with the EU in 2009, 
Papua New Guinea’s performance as one of the greate st success stories in EPA implementation is a 
real example for other countries in the region. Papua New Guinea’s cumulative exports to the EU 
more than tripled during 2009 -2011 and then nearly doubled 2012 -2015. The EU highly values the 
collaboration and e fforts of Papua New Guinea towards strengthening our long -term trade and 
investment relations in the framework of the EPA.  
4.7.  The EU attaches great importance to trade and investment as agents of sustainable growth, 
job creation and poverty reduction in Papua  New Guinea. That is why – in the context of the EPA – 
the EU introduced this highly preferential regime enjoyed by the Pacific States since 2008. The EPA 
has occasioned major new investments and thousands of jobs - mostly taken up by women - in 
Papua New Guinea, especially in the fish processing industry. Since concluding EPA negotiations, 
Papua New Guinea has enjoyed duty -free quota -free access for processed fish to the EU market with 
improved rules of origin. As a result, Papua New Guinea has substantial ly increased its processed 
non-originating tuna exports to the EU, which accounted for 16.5% of Papua New Guinea’s total 
exports to the EU in 2015.  
4.8.  The EU is committed to support Papua New Guinea to explore how the EPA success in the 
fisheries sector can be replicated in other priority value chains, such as cocoa, coffee, coconut, 
vanilla, etc.  
4.9.  The EU welcomes Papua New Guinea’s ratification in early 2018 of the WTO Agreement on 
Trade Facilitation and the notification of its category A commitments under t he TFA in 2016, which 
cover some 21% of all notifiable items.  
4.10.   As noted in the Secretariat’s report, Papua New Guinea has made few WTO notifications during 
2010-18 and has outstanding notifications in several areas, including agriculture, import licensing 
procedures, quantitative restrictions, customs valuation, rules of origin, state trading enterprises, 
intellectual property rights, and GATS.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  4.11.   We heard from Ambassador Kalinoe that Papua New Guinea has made efforts in the SPS area. 
Still, the EU encourages Papua New Guinea to improve SPS legislation: there has been little progress 
since the previous TPR in 2010. There is still no notified SPS legislation on import requirements or 
other rules on food, animal or vegetable products, and no internet site with th is information.  
4.12.   We take note that the authorities have requested technical assistance from the WTO 
Secretariat in area of notifications and urge Papua New Guinea to meet its notification requirements 
under the WTO with a view to enhancing transparency and predictability.  
4.13.   Substantial work remains for the Government to implement the National Trade Policy, and to 
operationalise the National Trade Office (NTO), both established in August 2017. The creation of a 
Single Window for traders would considerably simp lify customs clearance and other procedures for 
business and the NTO has to play a key role with regards to coordinating the numerous government 
entities and agencies to ensure that they productively cooperate towards the establishment of this 
important ne w future.  
4.14.   To conclude, the EU welcomes the overall direction Papua New Guinea is taking in its trade 
policy and encourages to continue on this path.  
4.15.   The EU stands ready to provide further substantial technical assistance to Papua New Guinea 
via the 11th Eu ropean Development Fund for the period 2014 -2020, including through a substantial 
€85M new programme for support to rural entrepreneurship, investment and trade in Papua New 
Guinea and a Regional Indicative Programme (€37M) for support to regional economic  integration, 
trade and private sector. Reflections on the next programming period (2021 -2027) of EU - Papua 
New Guinea assistance have started ahead of the conclusion of a new EU -ACP accord to succeed the 
present Cotonou Agreement which will expire next ye ar. The Papua New Guinea’s government will 
in due course be invited to share its views with the EU on this important matter.   
4.16.   The EU submitted a number of questions and we look forward to reviewing the replies. On 
behalf of the EU, I look forward to a con structive exchange of views during this Trade Policy Review 
and wish Papua New Guinea the best of success during its third TPR since joining the WTO. If you 
do well with chocolates in Belgium, you are definitely on the right track and will do well elsewher e 
too. 
UNITED  STATES  
4.17.   We would like to congratulate Papua New Guinea for successfully hosting APEC in 2018 and 
in demonstrating the economic potential, cultural diversity, and hospitality of the South Pacific.  
4.18.   The previous year was also a dynamic one for our bilateral trade and investment relationship. 
In October, U.S. trade officials visited Papua New Guinea to meet with public and private sector 
members to discuss ways in which the U.S. and Pacific Island Forum members can increase trade 
ties through the  U.S. GSP programme. In addition, the U.S. Commercial Service established a 
Partner Post in Papua New Guinea, which provides services to U.S. companies interested in exporting 
to Papua New Guinea, as well as supporting Papua New Guinean companies looking t o invest in the 
United States.  The United States continues to work with Papua New Guinea to explore ways to 
deepen bilateral trade ties.  
4.19.   Since the last Trade Policy Review in 2010, we have seen the development of Papua New 
Guinea’s first National Trade Po licy (NTP). The United States is pleased to see that Papua New Guinea 
has prioritized the implementation of trade facilitation obligations under the NTP. Since the NTP’s 
release in 2017, Papua New Guinea has deposited its instruments of acceptance of the T rade 
Facilitation Agreement (TFA), notified its Category A commitments, and aligned its automated 
customs system with international best practices. However, we would like to draw Papua New 
Guinea’s attention to the next — and very important — step in TFA i mplementation, which is to 
notify definitive dates for Category C commitments by 22 August 2019. According to the Agreement’s 
text, failure to notify in a timely manner will deprive your country of the flexibilities and 
capacity -building assistance availab le to Members under the Agreement, and we want to ensure that 
Papua New Guinea will not lose this important benefit. In addition, we also encourage Papua New 
Guinea to provide indicative and definitive dates for Category B commitments to ensure full 
implem entation of the Agreement.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  4.20.   Regarding import permits, we note that Papua New Guinea partially lifted its moratorium on 
the issuance of permits for fresh produce and uncooked poultry in 2016, but we continue to have 
concerns about the scientific basis for th e remaining prohibitions as well as the origins of the 
moratorium. During this review, we look forward to hearing from Papua New Guinea on when 
Members can expect the full official repeal of the moratorium as well as additional information on 
the scientifi c basis and the process that Papua New Guinea took to determine the moratorium.  
4.21.   On intellectual property, we welcome Papua New Guinea’s efforts to develop a National IP 
Plan and align its existing legal framework with the WTO TRIPS Agreement. Recognizing t he 
challenges Papua New Guinea faces in IP enforcement, taking these and other steps to ensure a 
robust intellectual property system would support the development of creative and innovative 
industries and be an additional driver of Papua New Guinea’s econo mic diversification efforts.  
4.22.   In closing, the United States wishes to thank the delegation of Papua New Guinea for its 
efforts in this review, its attention to our questions and its important leadership role as APEC host 
in 2018.  We look forward to further  cooperation with Papua New Guinea on trade matters bilaterally 
and here at the WTO.  
JAPAN  
4.23.   PNG has achieved 5.2% annual economic growth on average during this review period. 
However, due to the effects of a number of natural disasters and economic factors,  economic growth 
in PNG has been weakened recently. Therefore, we expect PNG to make further efforts in opening 
up its economy in order to attract foreign investment and develop competitive environments for 
business.  
4.24.   In this regard, as the second largest source of total Foreign Direct Investment (FDI) in PNG, 
Japan appreciates the country’s open investment regime, which has surely contributed to the 
improvement in its ranking in the World Bank’s Ease of Doing Business report from 145th in 2016 
to 108th in 2018. In addition, we appreciate that the Investment Promotion and Protection Treaty 
between Japan and PNG has been enforced since 2014.  
4.25.   Also, as its third largest trading partner, Japan appreciates PNG’s adoption of its first National 
Trade Policy.  
4.26.   There are, however, areas that can be improved on. Even though PNG has developed a 
competition regime that is applied to SOEs in competition with private firms, in some of its sectors 
SOEs have huge market power and private firms are crowded out. Enforcement o f IPRs is also a 
significant challenge in PNG. There have, however, been no changes to the legal and institutional 
framework for IPRs during this review period. It is important to achieve some progress in these 
areas, in order to strengthen and diversify i ndustries in PNG that would contribute to enhancing 
competitiveness in its heavily LNG -dependent export sector.  
4.27.   PNG is an original WTO Member. We appreciate its long -time commitment to the multilateral 
trading system, even though it is a non -resident Membe r. PNG, for example, accepted the Trade 
Facilitation Agreement (TFA) in March 2018 and the Protocol Amending the TRIPS Agreement in 
June 2016. We would also like to express our appreciation for the dedicated efforts made by PNG as 
Chair of APEC in 2018.  
4.28.   At the same time, PNG is not a party to either the Government Procurement Agreement (GPA) 
or the Information Technology Agreement (ITA). We recognize that PNG has improved its 
government procurement frameworks. In this context, we encourage PNG to consider joining the 
GPA as this would contribute to further decreasing its fiscal deficits through fostering a transparent 
government procurement environment. PNG can also be considered as one among many MSMEs for 
whom the digital economy has the potential to prov ide increased opportunities to join the global 
market. In order to fully unleash the potential of electronic commerce, it is therefore important for 
PNG to enable access to the global market by improving its digital infrastructure. In this regard, we 
encou rage PNG to consider joining the ITA. We also hope that PNG will participate in the Joint 
Statement Initiative on Electronic Commerce in the WTO.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  4.29.   In addition, there are other areas that can be improved on. Particularly, we recognize that 
PNG has made few notifications to the WTO. We therefore encourage PNG to further strengthen its 
efforts in the area of notifications.  There is also room for improvement in the area of TBT and SPS 
measures. We believe that such efforts will definitely contribute to fosteri ng a predictable and 
transparent business environment.  
4.30.   Furthermore, the services sector is now the largest contributor to PNG’s GDP. Therefore, we 
are convinced that this sector holds great promise for the future growth of PNG. In order to further 
strength en competitiveness in the services sector, it is important for PNG to review its GATS 
commitment.  
4.31.   In conclusion, we are sure that PNG will be well placed to continue pursuing open, transparent 
and non -discriminatory markets by observing its commitments to  the WTO. We wish PNG a 
successful and productive TPR and look forward to hearing of further progress regarding its trade 
and investment policies at its next TPR.  
AUSTRALIA  
4.32.   Australia was pleased to have assisted PNG in preparing for this important Trade Po licy 
Review.  
4.33.   Firstly, congratulations to PNG for delivering a vibrant and successful APEC 2018. PNG 
showcased its business, investment and tourism potential throughout its APEC year, and 
demonstrated its increasing economic leadership in the Pacific.  
4.34.   Australia and PNG share deep historical bonds and a close understanding, in addition to 
substantial trade and investment links.  
4.35.   PNG is an important trading partner for Australia with two -way trade amounting to over 
$6 billion in 2017 -18.  Australia provides d uty free access to almost all products originating from 
Forum Island Countries, including PNG, under SPARTECA.  
4.36.   Australia has many major investments in PNG with foreign direct investments (2017) of over 
$16 billion with over 4,400 Australian companies doing  business with PNG. We continue to promote 
further investment into PNG.  
4.37.   We appreciate PNG’s support for the multilateral trading system. Despite not having a Geneva 
based Mission, PNG has engaged in important initiatives and negotiations in the WTO.  
4.38.   Austra lia highly values PNG’s constructive engagement in the WTO fisheries subsidies 
negotiations as part of the Pacific Group, and we look forward to continuing to work collaboratively 
towards a successful conclusion of these important negotiations in December this year.  
4.39.   We welcome PNG’s ratification of the WTO Trade Facilitation Agreement in 2018. We welcome 
the implementation of a procedure for the pre -arrival processing of cargo manifests. We encourage 
PNG to develop its plans to implement a single window and  other trade facilitation measures.  
4.40.   We encourage PNG to improve on its record of WTO notifications. Submitting notifications is 
a core obligation for all Members and is an important transparency measure. We note PNG has 
sought assistance from the WTO Secre tariat is preparing its notifications and we encourage 
continued communication with the Secretariat on this matter.  
4.41.   Australia places importance on strong economic engagement and continues to work closely 
with PNG in support of its economic cooperation pri orities. We welcome PNG’s plans to prepare 
e-commerce legislation, and look forward to working with PNG to support its engagement with 
international processes and negotiations through our Aid for Trade programs (including through the 
World Economic Forum’s  Facilitation 2.0 program, E -commerce Aid for Trade Fund and Indo -Pacific 
Digital Standardisation Initiative).  
4.42.   We strongly encourage PNG to reinstate its Tariff Reduction Program and maintain a stable 
and predictable regulatory environment that welcomes foreign investment. Policies that seek to WT/TPR/W/ 166 • Papua New Guinea  
 
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  protect the domestic market, by reducing competition, can be unintentio nally harmful to consumers 
and ultimately economic growth. The benefits of trade liberalization and foreign investment are well 
established and key to supporting higher rates of economic growth, employment and living 
standards.  
4.43.   We thank PNG for providing r esponses to our written questions and will review them carefully.  
4.44.   We wish PNG a very successful Trade Policy Review.  
CHINA  
4.45.   China notes with pleasure the relatively sound macroeconomic performance of PNG during 
the review period, with an annual average growth rate of 5.2% between 2010 and 2018. Several 
important efforts by the PNG Government contributed to this success. Regardi ng macro -economic 
policies, China appreciates the unremitting work of the PNG Government to control its inflation and 
fiscal deficit. Regarding trade policies, PNG maintains relatively low tariff rates. It launched its first 
National Trade Policy in 2017, with the aim of becoming "an internationally competitive export driven 
economy that is built on and aided by an expanding and efficient domestic market".  
4.46.   Meanwhile, China notes with concern that extreme poverty, inadequate infrastructure and 
skill gap are  still undermining the development of PNG in the long run. The economy of PNG relies 
heavily on the export of natural resources, making it vulnerable to fluctuations of global commodity 
prices. More efforts on the diversification of economic structure woul d contribute to sound and 
sustainable development of PNG in the future.  
4.47.   China and PNG enjoy sound economic partnership. PNG is the largest trading partner, 
investment destination and project contracting market of China in the Pacific island region. China is 
also one of the largest trading partners and sources of FDI of PNG. Our bilateral trade reached 
USD 3.62 billion in the year 2018, growing by 27.5%. Our import from PNG reached USD  2.83 billion, 
growing by 37.2%. By the end of 2017, the aggregated inves tment of China to PNG reached 
USD 2.1 billion, and the total value of newly -signed project contracts reached USD  690 million in 
2018.  
4.48.   PNG is making remarkable progress in improving its business environment, yet more efforts 
are still needed. In this regar d, we would like to make the following suggestions.  
4.49.   First, regarding visa and labour policy. The new visa policy of PNG implemented earlier this 
year makes it almost impossible for Chinese business visitors to get a multi -entry business visa. The 
duration for a single -entry business visa is only 30 days. The application fee for a three -year working 
visa is about USD 4000 -5000, and it usually takes 1 -3 months to get a work permit in PNG. It would 
be very helpful if PNG could kindly consider providing more fa cilitation to foreign investors and 
business visitors in this regard.  
4.50.   Second, regarding administration process. We urge PNG to reduce the time and costs for 
relevant administration approval process and customs clearance, thus creating a more enabling 
business environment for foreign investors and traders.  
4.51.   Third, regarding public security. We urge PNG to make more efforts to protect foreign 
investors and visitors from violent crimes.  
4.52.   China appreciates the support of PNG to the Belt and Road Initiative. PN G is the first country 
in the Pacific island region to sign the Belt and Road Cooperation MOU. During the Second Belt and 
Road Forum for International Cooperation, which was held in Beijing last month, Prime Minister Li 
Keqiang and Prime Minister Peter O'N eill witnessed the signing of the Belt and Road Cooperation and 
Implementation Plan between the two countries. We look forward to further cooperation between 
the two countries in the coming future under this Initiative. We are also ready to cooperate with 
PNG closely at the WTO, with a view to upholding the development dimension, helping all developing 
Members to participate in and benefit from the multilateral trading system and global trade.  
  WT/TPR/W/ 166 • Papua New Guinea  
 
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  ICELAND  
4.53.   On the occasion of the 11th Ministerial Conference in Buenos Aires, more than 120 WTO 
Members and Observers launched a joint declaration on trade and women’s economic empowerment 
that aims inter alia at sharing best practices and working together at the WTO to remove barriers 
for women’s economic empowerment and increase their participation in trade. This declaration is 
the fruit of the Trade Impact Working Group that was established under the auspices of the 
International Gender Champions – Geneva, that is now co -chaired by Botswana, Iceland and the 
ITC.  
4.54.   The Secretariat report, prepared for this trade policy review, mentions that gender and 
inclusiveness are among the integral components of trade policy in PNG. The trade policy review 
provides an excellent opportunity to share best practices in this field, an d we welcome the 
information provided in this regard in the government report of PNG. As the report shows, Papua 
New Guinea has interesting best -practices and experiences in the field of trade and gender to share.  
4.55.   Iceland submitted advance written questio ns on the participation of women in the economy 
of PNG and on initiatives that are being undertaken to make economic growth more inclusive. We 
wish to thank PNG for the responses to our written questions. We will review the answers thoroughly 
and request c larifications as necessary during the course of this TPR. The answers are very useful 
as we implement the joint declaration and gather best practices which we will present at MC12.  
4.56.   Iceland appreciates PNG's active engagement in the WTO and their continued support for the 
multilateral trading system. We wish the delegation of Papua New Guinea every success for their 
third trade policy review.  
BRAZIL  
4.57.   Let me first congratulate Papua New Guinea for its commitment to the WTO and to this 
exercise, which can be mo re demanding for non -resident Members. Brazil takes positive note of the 
average rate of 5.2% of economic growth and of the increase in GDP per capita since the last review. 
At the same time, we also acknowledge the recent deceleration in GDP growth due, a mong others, 
to low commodity prices.  
4.58.   With regards to the participation of Papua New Guinea in the multilateral trading system, we 
congratulate the Government for having ratified the Trade Facilitation Agreement and for having 
accepted Protocol Amending th e TRIPS Agreement. Concerning notifications, we note with 
appreciation that Papua New Guinea has notified — for the first time — its domestic support 
commitments covering the years of 2013, 2014, 2016 and 2017. We thank Papua New Guinea for 
this contributi on to the WTO monitoring pillar, and we encourage the Government to continue with 
this valuable exercise.  
4.59.   Turning to the bilateral front, trade relations between Brazil and Papua New Guinea can be 
further strengthened. Bilateral trade are concentrated on t ools, on the Brazilian side, and on vanilla, 
on the side of Papua New Guinea. In this regard, Brazil has submitted a few questions to Papua New 
Guinea and we are thankful for the replies. They will be reviewed by our Capital and they will certainly 
contrib ute to a greater understanding of the trade policy of Papua New Guinea and will underpin 
efforts to further stimulate bilateral trade.  
4.60.   Let me conclude by expressing again our appreciation for the engagement of Papua New 
Guinea with this exercise and by wis hing to the delegation a very successful Trade Policy Review.  
PHILIPPINES  
4.61.   The Philippines and Papua New Guinea (PNG) enjoy longstanding diplomatic relations. The 
Philippines first established a Consulate -General in Port Moresby in 1974 and upon the indepen dence 
of Papua New Guinea in September 1975 the Philippine consulate in Port Moresby was upgraded to 
an embassy making the Philippines one of the first countries to formalize diplomatic relations with 
Papua New Guinea.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  4.62.   Recently, to further enhance trade and economic relations between our countries, the 
Philippine Department of Trade and Industry signed a Memorandum of Understanding with Papua 
New Guinea’s Ministry of Foreign Affairs creating a Joint Economic and Trade Co mmittee (JETC). The 
Memorandum was signed at the sidelines of the APEC Summit in Port Moresby in November 2018. 
The JETC serves as a mechanism to exchange information on trade, investment, eco -nomic issues, 
relevant laws, regulations and policies between o ur two economies. It also serves as a platform to 
explore and identify sectors where cooperation may be expanded and intensified and for measures 
and recommendations aimed at the expansion and diversification of trade and investment.  
4.63.   Agriculture as well as  oil and gas exploration, and exports of processed good, electronics, 
machinery and equipment, packaging materials, and appliances are among the major economic 
interests of the Philippines in Papua New Guinea.  
4.64.   The Philippines recognizes PNG’s National Trad e Policy 2017 -2032 adopted in 2017, which 
provides a comprehensive framework for action to expand their trade over that period. It also 
includes the institutional transformation being conducted by the Department of Commerce and 
Industry, separating externa l trade from commerce and industry functions. The review period was 
a significant time for PNG’s trade policy as MFN tariffs were gradually reduced and completed in 
multiple phases between 1999 and 2017.  
4.65.   PNG has been a member of the WTO since 1996 and rem ains a non -resident Member, handling 
WTO matters through its mission in Brussels and the WTO Pacific Islands Forum Representative 
Office in Geneva established in 2004. Despite the absence of a physical Mission in Geneva, PNG 
remains committed to the multil ateral trading system recognizing the crucial role of WTO in fulfilling 
the Sustainable Development Goals. PNG ratified the Trade Facilitation Agreement in 2018 and 
accepted the Protocol Amending the TRIPS Agreement in 2016. It has yet to join the Philippi nes and 
other Members and sign on to the Information Technology Agreement.  
4.66.   We thank Papua New Guinea for its replies to our questions. My colleagues in Manila are 
reviewing the replies.  
4.67.   In closing, the Philippines looks forward to further enhancing the m utually beneficial economic 
relations between our countries in the bilateral, regional, and multilateral fora.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.68.   Bilaterally, the value of two -way trade between our two sides amounted to 832. 77 million US 
dollars in 2017, but declined to USD 671.28 million in 2018, which was largely due to smaller 
importing value of Liquid Natural Gas (LNG). As we learnt from the report produced by Secretariat, 
the development of LNG has propelled the gas indu stry to become the key driver of PNG's economic 
growth since 2014 -2015, where Foreign Direct Investment has taken an important part. My 
delegation is interested in exploring if the Government of PNG have any further plans to liberalize 
the mining sectors f or attracting more foreign investment. We are also interested in having better 
understanding if the Government review the FDI restrictions periodically and which measures in 
place have been offered as incentives to foreign investment.  
4.69.   PNG has extensive and  valuable fishery resources ranging from inland river fisheries, 
aquaculture, coastal and reef fisheries and large -scale deep -water tuna fishing. As a Member with 
major interests in sustainable fisheries, my delegation is interested in knowing how PNG cont rol and 
monitor the fishing capacity of foreign fishing vessels operating in its EEZ (for example, quantity of 
fishing vessel or operation period). Other measures taken by the National Fishery Agency (NFA), 
including the Catch Certificates required by mark et states, the sanitary control of the fishery 
exported to EU and fishing vessels rent by PNG under RFMO Charter Arrangement are of our 
concerns. It will be highly appreciated if PNG could address such concerns and reply to our written 
questions we provide d in advance.  
4.70.   My delegation noticed PNG has a strong interest in participating in current fishery negotiation 
and intends to preserve its policy space to develop a commercial fishing fleet. It will be also 
appreciated if PNG can share its subsidy policy fo r foreign -flagged commercial fishing vessel.  
4.71.   In conclusion, we wish PNG a constructive and successful Trade Policy Review.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  THAILAND  
4.72.   Thailand and Papua New Guinea have enjoyed growing bilateral trading relations. We are 
pleased to highlight that total trade  between our two countries have more than doubled since the 
last review, expanding from USD 199 million in 2010 to USD 437 million in 2018. Thailand hopes 
that our bilateral trade will continue to grow to further strengthen economic relations.  
4.73.   Thailand not ably welcomes the commendable macroeconomic performance of Papua New 
Guinea, with the economy growing at an annual average rate of 5.2% between 2010 and 2018. 
Moreover, GDP per capita increased from USD 1,672 in 2009 to USD 2,556 in 2017.  
4.74.   Thailand is pleas ed to read in the Secretariat's report that in 2017, Papua New Guinea adopted 
its first ever National Trade Policy, covering the period 2017 to 2032. We hope that this policy will 
contribute to sustainable and resilient economic growth in the country. In a ddition, we welcome 
many achievements by Papua New Guinea during the review period, including the legislative 
developments in public -private partnership and government procurement frameworks.  
4.75.   On the participation in the WTO, we welcome Papua New Guinea’s n otification of its Category 
A commitments under the Agreement on Trade Facilitation (TFA) in 2016 and notification of its 
acceptance of the TFA last year. Papua New Guinea also accepted the Protocol Amending the TRIPS 
Agreement in 2016.  
4.76.   Papua New Guinea ha s faced challenges in making timely notifications due to lack of capacity 
and tight limitations on its representation in Geneva. We take note from the Government report with 
appreciation that the Government devoted considerable administrative resources to its notification 
requirements and has been proactive in seeking assistance from the Secretariat. We hope that Papua 
New Guinea will be able to improve its notification compliance under the WTO agreements to 
enhance transparency in the government's trade po licy. 
4.77.   Regarding tariff, Papua New Guinea's average applied MFN tariff fell from 5.1% in 2010 to 
3.9% in 2018. However, according to the Secretariat report, applied tariffs on 23 tariff lines appear 
to exceed bound rates. Thailand is interested to seek clar ification from Papua New Guinea in this 
regard.  
4.78.   In this review, Thailand submitted questions covering specific aspects of trade and economic 
policies of Papua New Guinea, including the Investment Promotion Authority, customs valuation, 
import permit exemp tion for agricultural products, and fisheries sector. Thailand would like to thank 
Papua New Guinea in advance for written responses.  
4.79.   In conclusion, we wish Papua New Guinea a successful outcome in this Trade Policy Review.  
CANADA  
4.80.   Canada joins others in welcoming the Papua New Guinea delegation to Geneva. We are 
pleased to participate in Papua New Guinea’s Trade Policy Review and we would like to express our 
appreciation to the Government of Papua New Guinea and the WTO Secretariat for the high quality 
of their reports. We also appreciate the importance of participating in the trade policy review process, 
which is a vital function of the WTO’s leadership role in facilitating and safeguarding trade.  
4.81.   Canada has a positive relationship with Papua New Guinea a nd is proud to work with Papua 
New Guinea through both the Canada Fund for Local Initiatives and multilateral programming. Our 
relationship is centered on mutual interests such as sustainable development, gender parity and 
capacity building. Canada is curr ently engaged in initiatives supporting water supply infrastructure, 
rural and remote communities, gender equality, and improving educational training facilities. These 
projects are contributing to inclusive economic development and addressing environmenta l 
challenges in the country.  
4.82.   Since its last Trade Policy review in 2010, Papua New Guinea has suffered major droughts 
and severe earthquakes which affected economic development and created fiscal challenges.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  4.83.   In the face of many challenging circumstances,  I welcome Papua New Guinea’s commitment 
to the multilateral system supporting a rules -based structure for international trade and commerce. 
Broad and comprehensive policy reforms together with trade liberalization are key to the long -term 
development, eco nomic growth and prosperity of Papua New Guinea.  
4.84.   I would now like to take this opportunity to highlight areas where Papua New Guinea has 
taken significant steps toward improving its economy.  
4.85.   First, Canada would like to congratulate Papua New Guinea for its  successful hosting of the 
Asia-Pacific Economic Cooperation (APEC) forum in 2018. We commend Papua New Guinea for its 
leadership in promoting inclusive growth, new approaches to address the digital economy, and a 
stronger Multilateral Trading System durin g its APEC host year. Canada was pleased to support these 
efforts and will continue to work with Papua New Guinea and other APEC partners to advance free 
trade and regional economic integration.  
4.86.   Second, Canada is pleased that Papua New Guinea ratified the Trade Facilitation Agreement 
and has provided a notification regarding its category A commitments to the WTO.  
4.87.   Despite this progress and these promising initiatives, there remain areas which would benefit 
from further attention on the part of the Government . We are concerned by Papua New Guinea’s 
108th rank on the 2019 World Bank Ease of Doing Business Index, and particularly the 140th rank 
on trading across borders, the 142nd rank in resolving insolvency, the 143rd in starting a business 
and the 173rd rank in enforcing contracts. Improving performance in these areas will facilitate 
commercial activity and contribute to economic growth.  
4.88.   Canada also notes that Papua New Guinea is subject to category 1 administrative measures 
with respect to its contribution to  the WTO. We encourage Papua New Guinea to submit its 
contributions to the organization as soon as possible.  
4.89.   Taking into consideration the importance of the economic and regulatory environment for 
trade, Canada stresses the importance of timely notificati ons by Papua New Guinea. We encourage 
Papua New Guinea to file its outstanding notifications, including in areas such as agriculture, import 
licensing procedures, quantitative restrictions, and intellectual property rights.  
4.90.   Canada has submitted written qu estions with respect to Papua New Guinea’s draft legislation 
concerning anti -dumping, countervailing and safeguards measures to better understand the trade 
remedies regime that Papua New Guinea seeks to establish.  
4.91.   In closing, we wish Papua New Guinea a ver y successful Trade Policy Review, and we look 
forward to a constructive exchange of views this week.  
REPUBLIC  OF KOREA  
4.92.   I am pleased to note that Korea and Papua New Guinea have maintained a cooperative 
economic relationship. Korea is the 10th largest expor t market and the 9th largest import destination 
of Papua New Guinea as of 2016.  
4.93.   The economic relationship between Korea and Papua New Guinea is positive and expected to 
be further strengthened in various areas. At the summit meeting held in Papua New Guin ea last 
year, the two leaders of our two countries agreed to enhance and expand cooperation in areas where 
the two countries complement each other such as energy, seaport infrastructure, and marine -
fishery.  
4.94.   In order to promote mutual investment and provid e our investors with a better business 
environment, Korea and Papua New Guinea have had a double taxation treaty effectuated since 
1998. Currently, our two countries are negotiating an Investment Promotion and Protection 
Agreement and we hope the negotiati on will conclude promptly to provide our investors more 
protections and to build an institutional basis to expand mutual investment.  
4.95.   Turning to Papua New Guinea’s overall economic performance, we note that Papua New 
Guinea has achieved steady economic gro wth since its previous TPR in 2010 as the Secretariat report WT/TPR/W/ 166 • Papua New Guinea  
 
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  points out. It is also noteworthy that macroeconomic policies and structural reforms including trade 
liberalization have been effective to assist Papua New Guinea’s positive real GDP growth.  
4.96.   In order to put the economy of Papua New Guinea on a more sustainable track, we would like 
to encourage the government of Papua New Guinea to continue to make efforts to reform its 
economy, including providing a better business environment for foreign investo rs and strengthening 
financial services.  
4.97.   With abundant natural resources, Papua New Guinea’s economy is highly trade -oriented and 
dependent on merchandise exports. In that sense, we would first like to recognize and praise its 
commitment to maintain an op en and multilateral trading system. Papua New Guinea’s applied MFN 
tariffs have decreased to 3.9% from 5.1% in 2010.  
4.98.   While we note that Papua New Guinea maintains a relatively liberal trade and open investment 
regime, there are areas where Papua New Guine a could make further improvements.  
4.99.   We would like to encourage Papua New Guinea to continue to address the concerns of other 
Members in such matters as those regarding the outdated SPS regime and the legal and institutional 
framework governing intellectual property which is facing major challenges in enforcing intellectual 
property rights.  
4.100.   At this TPR, Korea submitted written questions regarding Papua New Guinea’s policy 
considerations to deal with the current challenge of foreign exchange shortage, the low electrification 
level, and the outstanding payment issue in which foreign companies have not paid for the 
government project completed.  
4.101.   We thank the delegation of Papua New Guinea for providing answers to those questions, 
which we will review carefully.  
4.102.   Korea is pleased to note the steps Papua New Guinea has taken since the last review to 
make the overall trading and economic environment more efficient, and we certainly encourage 
Papua New Guinea to continue in the direction of facilitating trade, increasi ng investment, and 
enhancing the overall economic environment in a sustainable way.  
4.103.   Korea looks forward to working with Papua New Guinea to enhance opportunities for trade 
and investment.  
4.104.   In closing, we would like to express once again our appreciation to  the delegation of Papua 
New Guinea for their hard work and wish them every success in this TPR.  
INDIA  
4.105.   During the period under review from 2010 -2018, the economy of Papua New Guinea grew 
at an average rate of 5.2% however, the GDP growth rate witnessed flu ctuations with a peak of 
15.4% in 2014 and almost a negligible rate of growth in 2018. Papua New Guinea’s GDP per capita 
also increased from USD 1,672 in 2009 to USD 2,556 in 2018. The economy of Papua New Guinea 
is mainly reliant on mining and quarrying a ctivities including oil and gas extraction, agriculture and 
construction. As an island country, Papua New Guinea also faces challenges which include addressing 
structural vulnerabilities, risks of natural disaster, infrastructural needs, diversifying the e conomy 
and addressing poverty and other human and social development indices. We commend the 
Government of Papua New Guinea for the measures it has been adopting to address these challenges 
under its Vision 2050 and Development Strategic Plan from 2010 to 2030 which aim to promote 
economic growth and development.  
4.106.   India shares warm and friendly relations with Papua New Guinea. The trade between India 
and Papua New Guinea stood at USD 238 million in 2017 -18. There is considerable potential to 
promote trade b etween both countries in the areas of pharmaceuticals, iron and steel, minerals, 
electrical machinery, chemicals, textiles and other products.  
4.107.   India is also engaged with Papua New Guinea under the Forum for India -Pacific Islands 
Cooperation. Two summit fo rums of FIPIC in 2014 and 2016 have deepened and further WT/TPR/W/ 166 • Papua New Guinea  
 
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  strengthened our relations with Pacific Island countries including Papua New Guinea. Several 
initiatives and projects have been launched at the forums which include setting up of a special 
adaption f und; increase in grant -in-aid projects; strengthening development cooperation partnership 
in areas like healthcare, climate change, disaster risk management; projects for tele -education and 
telemedicine; establishing an institute for sustainable coastal an d ocean research, a centre for 
training in space applications and IT laboratories. A FIPIC Business Accelerator trade office for Pacific 
Island countries has also been set up in New Delhi to support development of MSMEs, assist for 
promoting trade in agric ulture, food processing and for increasing yields of rice and sugarcane. 
Confederation of Indian Industries is also engaged for promoting trade with Pacific Island countries.  
4.108.   For capacity building and human resources development, India is regularly offeri ng slots to 
professionals of Papua New Guinea in various institutions in India under Indian Technical and 
Economic Cooperation programme.  
4.109.   Before I conclude, let me reiterate India is committed to strengthen and deepen its 
development cooperation partnershi p with Pacific Island Countries including Papua New Guinea to 
assist them for their socio -economic development goals under the India -Pacific Island Cooperation 
framework.  
4.110.   We wish the delegation of Papua New Guinea a productive and successful TPR.  
SINGAPORE  
4.111.   Singapore congratulates Papua New Guinea for successfully hosting the APEC Summit and 
related meetings in 2018, despite the earthquake in February 2018. Papua New Guinea’s 2018 
Chairmanship focused on improving digital connectivity and inclusive economic growth, and 
important discussions on these issues continue to take place in APEC today.  
4.112.   We also welcome Papua New Guinea’s substantive engagement in the WTO including its 
ratification of the Trade Facilitation Agreement and the Protocol amending t he Agreement on 
Trade -Related Aspects of Intellectual Property Rights. Additionally, Papua New Guinea may wish to 
consider becoming a party to the Information Technology Agreement, which would dovetail with 
Papua New Guinea’s national efforts to improve it s ICT infrastructure.  
4.113.   We are also heartened that Papua New Guinea has bound its entire tariff range. However, 
we note in the Secretariat’s report that during the period under review, the applied rates for 23 of 
Papua New Guinea’s tariff lines exceeded the bound rates. We urge Papua New Guinea to abide by 
its WTO commitments and to rectify this situation soon. We also encourage Papua New Guinea to 
seek further technical assistance from the Secretariat and partners in order to fulfil its outstanding 
notificat ions, especially in the areas of import licensing procedures and state -trading enterprises. 
The WTO’s monitoring function is a crucial aspect of the organisation, and Members’ timely and 
complete notifications contribute to the predictability and transpare ncy of the international trading 
system.  
4.114.   On the domestic front, we are encouraged to learn from the reports by Papua New Guinea 
and the Secretariat about the steps that Papua New Guinea has taken to strengthen its economic 
growth. The success of its gradua l MFN tariff reduction, and the adoption of its first ever National 
Trade Policy for 2017 -2032 are commendable. We encourage Papua New Guinea to continue its 
efforts, including by updating its SPS regime and enhancing enforcement of IP rights.  
4.115.   Singapore se es potential to deepen economic collaboration with Papua New Guinea. The total 
trade between our countries stands at S$1.05 billion in 2018, an increase of 9.2% year -on-year. We 
look forward to growing our bilateral economic relations and identifying new a reas of cooperation  
4.116.   As a fellow Small Island Developing State, Singapore has supported Papua New Guinea’s 
development through technical assistance, rendered through the Singapore Cooperation Programme 
(SCP). Papua New Guinea accounts for the second largest  number of participants in the SCP among 
the Pacific Island States. Its officials have participated in a wide range of courses including areas 
such as economic development, trade and tourism promotion, public administration, and transport. 
In March 2019, S ingapore conducted a study visit on public service development for officials from WT/TPR/W/ 166 • Papua New Guinea  
 
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  the Papua New Guinea Department of Personnel Management, and members of the Pacific Institute 
of Leadership and Governance.  
4.117.   We wish Papua New Guinea every success in its thir d Trade Policy Review.  
URUGUAY  
4.118.   Uruguay desea brindar la más cordial bienvenida a la delegación de Papua Nueva Guinea en 
oportunidad de su tercer examen de sus políticas comerciales, una instancia fundamental para el 
sistema multilateral para promover la co mprensión de las políticas comerciales aplicadas por los 
Miembros de esta Organización.  
4.119.   Nuestro país desea, en primer lugar, congratular a Papua Nueva Guinea por los resultados 
macroeconómicos logrados durante el período objeto de examen alcanzando un crec imiento a una 
tasa anual media del 5,2% entre 2010 y 2018. El sector de servicios se ha consolidado como la 
columna vertebral de la economía en cuanto a su participación en el PIB, seguido de la explotación 
de petróleo y gas, la agricultura, la construcció n y las manufacturas.  
4.120.   En general, el régimen de inversiones es abierta y las reformas legislativas y la estabilidad 
gubernamental han ayudado al país a mejorar su clasificación en el último informe del Banco Mundial 
sobre la facilidad para hacer negocios,  que lo situó en el puesto 109° (frente al puesto 145° en 
2016).  
4.121.   Notamos que a pesar de que el PIB por habitante aumentó durante el período objeto de 
examen, la reducción de la pobreza continúa siendo uno de los mayores retos del país de acuerdo 
al Informe  de la Secretaría.  
4.122.   Destacamos que, en junio de 2016, Papua Nueva Guinea notificó sus compromisos de la 
categoría A en el marco del Acuerdo sobre Facilitación del Comercio y en marzo de 2018 depositó 
su instrumento de aceptación del AFC. Asimismo, en junio de 2016, aceptó el Protocolo por el cual 
se enmienda el Acuerdo sobre los ADPIC. No obstante, observamos que Papua Nueva Guinea ha 
presentado pocas notificaciones a la OMC por lo que alentamos a las autoridades a que continúen 
solicitando asistencia técnic a a la Secretaría.  
4.123.   Por último, aplaudimos la adopción de la primera Política Nacional de Comercio de Papua 
Guinea, que abarca el período 2017 -2032, donde se propone crear las condiciones para una 
economía sólida que incluya la participación de las microemp resas y pequeñas y medianas empresas 
(MIPYMES) en las fases más avanzadas del proceso de elaboración y en actividades con valor 
añadido a fin de aumentar su capacidad exportadora.  
4.124.    Uruguay le desea a Papua Nueva Guinea el mayor de los éxitos en su tercer e xamen de sus 
políticas comerciales.  
JAMAICA  ON BEHALF  OF THE ACP GROUP  
4.125.   Papua New Guinea is the biggest of the Pacific Island countries, and therefore an important 
trading partner for many Pacific countries. PNG is also an important member of the Pacific gr oup in 
the WTO although it is a non -resident member. We commend Papua New Guinea’s ratification of the 
Trade Facilitation Agreement in 2018, which is a testament to its commitment to WTO.  
4.126.   Papua New Guinea has reported economic growth of 5.2% since its last  review, which 
illustrates the country's commitment to adopting development policies and reforms that spur 
economic growth. In addition, the market access openings offered both unilaterally and in regional 
trade arrangements, including with the EU and Mela nesian Spearhead Group, have already 
translated to positive economic returns, including job creation. We also look forward to Papua New 
Guinea implementing the PICTA and joining PACER Plus to further strengthen trade integration in 
our region.  
4.127.   The country is reviewing its Investment Act, with the aim of safeguarding and promoting 
small and medium enterprises in the face of competition posed by foreign businesses. This is a WT/TPR/W/ 166 • Papua New Guinea  
 
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  legitimate policy concern for PNG. We hope that such investment measures will not dis advantage 
small businesses from across the Pacific region, who might have the potential to do business in PNG.  
4.128.   Despite strong economic growth, we acknowledge the challenges that PNG has faced, 
including the recent drought and earthquake, the fall in the wo rld price of commodities, and 
drawdown of extractives projects, which inhibit the country’s effort to grow its economy. Like other 
small island countries, PNG’s vulnerability to natural disasters remains a grave concern.  
4.129.   We congratulate Papua New Guinea fo r achieving the milestone of adopting its first National 
Trade Policy, and we are eager to find out more about how this policy will be implemented, and its 
impact on current Pacific regional trade agreements. Perhaps this Policy will also serve as a model 
to inspire other members of the Pacific Group. We are particularly interested in PNG’s plans to 
establish a National Trade Office, to increase Government capacity in this vital area and to 
mainstream trade into the Government’s development planning process . 
4.130.   We have taken note of PNG’s attempts to reflect the experiences of women in trade in their 
Government report. We commend the country’s plans to increase the role of women’s 
representatives in the formulation and oversight of trade policy in future, once the new National 
Trade Office is fully established, with its Trade Policy Advisory Council.  
4.131.   The Pacific Group recognizes the important role of the WTO and Aid for Trade in providing 
technical assistance that can help to address trade -related challenges tha t Members face, especially 
those with particular vulnerabilities. In this regard, we would like to draw the attention of Members 
and development partners to the annex on trade -related technical assistance needs that PNG has 
included at the end of its Gover nment Report. We hope that this analysis will soon form the basis of 
fruitful dialogue between Papua New Guinea and donors.  
4.132.   Chair, to conclude, the Pacific Group commends PNG on its commitment to the multilateral 
trading system and will continue to work cl osely with Papua New Guinea to progress work in the 
WTO negotiations including on Fisheries Subsidies, which is of priority interest for our region. We 
wish the delegation every success in their third Trade Policy Review.  
NEW  ZEALAND  
4.133.   New Zealand welcomes t his opportunity to comment on the third Trade Policy Review of 
Papua New Guinea.  
4.134.   New Zealand has a valued trade and investment relationship with Papua New Guinea. We 
recognise Papua New Guinea’s substantial economic potential: it has vast natural and human 
resources and is geographically well -positioned. A number of major resource proj ects will come 
online over the next ten years. We also recognise Papua New Guinea’s efforts to ensure benefits of 
these projects are captured for current and future generations. This, combined with our regional 
proximity and connections, means there is fur ther opportunity to increase trade between our 
countries.  
4.135.   New Zealand congratulates Papua New Guinea on its successful hosting of APEC in 2018 – 
which is a significant undertaking for any country. Papua New Guinea is engaged in important 
economic and stra tegic architecture of the region.  
4.136.   New Zealand welcomes Papua New Guinea’s strong support for the multilateral trading 
system, as expressed in the Pacific Group Ministerial Declaration at the eleventh Ministerial 
Conference in Buenos Aires. That Declaratio n noted the fundamental importance of an open, 
transparent and predictable system that promotes the rights and interests of all Members. We 
encourage Papua New Guinea to continue to participate in discussions on WTO reform to ensure that 
the multilateral t rading system delivers for all.  
4.137.   New Zealand congratulates Papua New Guinea for its successes since its last Trade Policy 
Review in achieving notable economic growth, despite the challenges presented by low commodity 
prices and recovery from a number of  natural disasters in 2017 and 2018.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  4.138.   New Zealand welcomes the efforts by Papua New Guinea in developing its trade policy to 
create an economic environment that is conducive of and supports two -way trade.  
4.139.   New Zealand recognizes the challenges implementati on of MFN tariff reduction presents for 
local businesses and welcome Papua New Guinea’s commitment to tariff liberalization, which will 
assist in opening further growth and economic development.  
4.140.   New Zealand notes, however, that in 2017 Papua New Guinea’s applied tariff rates on 
23 lines exceeded its scheduled bound tariff rate commitments. New Zealand is interested to hear 
how this occurred and whether Papua New Guinea has brought all such measures in line with its 
scheduled commitments? If Papua New Guine a is yet to align its applied tariffs with its scheduled 
commitments, New Zealand strongly encourages it to do so.  
4.141.   We also encourage that any measures taken for sanitary and phytosanitary reasons are 
based on scientific principles and supported by suffici ent scientific evidence.  
4.142.   New Zealand recognises Papua New Guinea’s deep commitment to sustainable management 
of its fisheries resources and congratulates its successful rehabilitation of bigeye tuna and bêche -de-
mer in collaboration with regional fisherie s management organisations. We also congratulate Papua 
New Guinea’s strong commitment and prioritisation to the achievement of SDG 14.6 and 
consequently an agreement on fisheries subsidies. Papua New Guinea is an active participant in the 
fisheries subsidi es' negotiations through the Pacific Island States grouping and we welcome its 
continued support for disciplines on fisheries subsidies.  
4.143.   New Zealand notes the comments from Papua New Guinea regarding the need for future 
technical assistance with its trade related needs. We welcome continued bilateral discussion on how 
New Zealand can assist to meet the Government of Papua New Guinea’s priorities.  
4.144.   In conclusion, New Zealand commends the significant and ongoing progress Papua New 
Guinea has made since their last Trade Policy Review in 2011, and acknowledges the challenges 
faced. We welcome Papua New Guinea’s views on the issues that will be raised during the course of 
this review.  
VANUATU  ON BEHALF  OF THE PACIFIC  GROUP   
4.145.   Papua New Guinea is the biggest of the Pacific island countries and, therefore, an important 
trading partner for many Pacific countries. Papua New Guinea is also a member of the Pacific Group 
of the WTO, although it is an unrested Member.  
4.146.   We commend Papua New Guinea's ratification of the Trade Facilitation Agreement in 2018, 
which is, in itself, a testament to its commitment to the WTO.  
4.147.   Papua New Guinea has recorded economic growth of 5.2% since its last Review, which 
illustrates the country's commitments to adopting development policies and ref orms that spur 
economic growth.  
4.148.   In addition, the market access openings offer both unilaterally and in regional trade 
agreements, including with the EU and the Melanesian Spearhead Group, have already translated to 
positive economic returns, including job creation.  
4.149.   As a valuable Member and supporter, to increase Pacific integration, we look forward to 
Papua New Guinea also consider turning the PACER Plus and also increase implementation of the 
PICTA itself.  
4.150.   The country is reviewing its Investment Act, with  the aim of safeguarding and promoting 
small and medium enterprises in the face of competition posed by foreign businesses. This is a 
legitimate policy concern for Papua New Guinea.  
4.151.   We hope that such investment measures will not disadvantage small business es from across 
the Pacific region who might have the potential to do business in Papua New Guinea.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  4.152.   Despite the strong economic growth, we acknowledge the challenges that Papua New Guinea 
has faced, including the recent droughts and the earthquake, the fall  in the world price of 
commodities, and the drawdown of extractive projects, which inhibit the country's growth and effort 
to grow its economy.  
4.153.   Like other small island countries, Papua New Guinea's vulnerability to natural disasters 
remains a great concern .  
4.154.   We congratulate Papua New Guinea for achieving the milestones of adopting its first National 
Trade Policy, and we are eager to find out more about how this policy will be implemented and its 
impact on current pacific regional trade agreements. Perhaps t his policy will serve as a model to 
inspire others of the Pacific Group.  
4.155.   We are particularly interested in Papua New Guinea's plans to establish a national trade 
office to increase the Government's capacity in this vital area and to mainstream trade into t he 
Government's development planning process.  
4.156.   We are taking note of Papua New Guinea's attempt to reflect the experience of women in 
trade, in the Government report. We commend the country's plans to increase the role of women's 
representatives in the form ulation and other sides of trade policy in future, once the National Trade 
Office is fully established with its trade policy advisory council.  
4.157.   The Pacific Group recognizes the important role of the WTO and Aid for Trade in providing 
technical assistance th at can help address trade -related challenges that Members face, specifically 
those with particular vulnerabilities.  
4.158.   In this regard, we would like to draw the attention of Members and development partners 
to the Annex of the trade -related technical assistan ce needs that Papua New Guinea has included at 
the end of its Government report.  
4.159.   We hope that this analysis will form the basis for fruitful dialogue between Papua New Guinea 
and donors, and we call on your continued support for Papua New Guinea.  
4.160.   To conclude, the Pacific Group commends Papua New Guinea's commitment to the 
multilateral trading system, and will continue to work closely with Papua New Guinea in the WTO 
negotiations, including in fishery subsidies, an area of significant importance to the Pacific. And we 
wish the delegation every success in the third Trade Policy Review.  
SAMOA  
4.161.   Samoa supports the statements delivered by Vanuatu on behalf of the Pacific Group and by 
Jamaica on behalf of the ACP Group.  
4.162.   We join WTO Members to congratulate P apua New Guinea on its third Trade Policy Review. 
We commend Papua New Guinea for fulfilling its obligation and commitment in upholding the WTO’s 
transparency requirement to undertake the review as reflected in its country report.  
4.163.   We also would like to tha nk the discussant, H.E. Mr. Martins Kreitus of Latvia for the 
analytical overview of Papua New Guinea’s trade policy, and the WTO for the technical work in 
preparing the Secretariat report.  
4.164.   Papua New Guinea’s country report and the WTO Secretariat’s report  provided detail insight 
on the level of contribution from the trade to the general economic and development of the country. 
The two reports reflect Papua New Guinea government commitments to the open and rules -based 
trade regime in the WTO, and the multil ateral trading system.  
4.165.   We noted the importance of agriculture, forestry, fisheries, manufacturing, mining, oil and 
gas sectors to Papua New Guinea’s economy.  
4.166.   We would like to highlight similar views Samoa shares with Papua New Guinea: fisheries 
subsidies negotiations are currently the top priority, also we take great interest in special and WT/TPR/W/ 166 • Papua New Guinea  
 
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  differential treatment (S&DT), trade and the environment, trade and natural disasters, and 
agriculture.  
4.167.   Papua New Guinea, like many Pacific countries, remains insuffic iently integrated into the 
global trading system because of many challenges. These challenges include; isolation to major 
markets, narrow market based, prone to climate change and natural disaster, which hinder its 
development aspirations.  
4.168.   The Government r eport of Papua New Guinea has indicated a number of areas requiring 
trade -related capacity building and technical assistance to support the country in implementing its 
WTO commitments. We believe that trade -related assistance should include targeted assist ance 
towards reducing and mitigating the impacts of climate change and natural disaster on Papua New 
Guinea economy in future.  
4.169.   In conclusion, we believe that the Papua New Guinea’s TPR would enlighten WTO Members 
of the trade policy regime in the country a nd it spelt out areas requiring improvements, and we 
thank Papua New Guinea for its response to the written questions raised by Members.  
4.170.   We wish H.E. Ambassador Kalinoe and his delegation all the best in the remaining days of 
the Trade Policy Review.  
TRINI DAD  AND  TOBAGO  
4.171.   Trinidad and Tobago is heartened by the economic success of PNG, which recorded an 
average annual growth rate of 5.2% since its last Trade Policy Review (TPR). Given some similarities 
in our economic structures, we are encouraged by PNG’s ec onomic advancement. My delegation has 
taken note of PNG’s goal of rebalancing its economy from informal agricultural employment and 
enclave resource extraction to a diversified, modern economy. The Small and Medium Enterprise 
(SME) Policy and Master Plan, covering the years 2016 -2030 is relevant.  
4.172.   Papua New Guinea's strategic development framework is indeed worthy of commendation. 
In this context we have taken note of PNG’s Vision 2050; the Development Strategic Plan (DSP), 
covering 2010 to 2030; and the Med ium Term Development Plan (MTDP) covering 2018 to 2022.  
4.173.   Trinidad and Tobago and Papua New Guinea often share common interests and concerns in 
the negotiating areas of the work of the World Trade Organization. Please allow me to take this 
opportunity to wis h Papua New Guinea a successful Trade Policy Review.  
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  5  REPLIES BY THE REPRE SENTATIVE OF PAPUA N EW GUINEA AND ADDITI ONAL 
COMMENTS  
5.1.  First of all, I would like to congratulate and thank the Representative from Indonesia for the 
statement just delivered. We tak e note of the issues and we will appropriately respond within the 
timeframe required. Let me just respond to some of the observations made on Wednesday.  
5.2.  It is a great honour to speak to you all once again on this final day of Papua New Guinea’s 
Trade Polic y Review. It has been wonderful indeed to see the interest that Members have shown in 
this Review, and I would like to thank you all for the questions, comments and encouragement you 
have already expressed, for the constructive spirit of this conversation,  and for your attendance here 
today. Through the Secretariat, we circulated some additional responses to your questions 
yesterday, and, of course, we will endeavour to address the remaining gaps over the next few weeks.  
5.3.  I would like to extend my thanks to the Chairman, His Excellency Manuel Teehankee of the 
Philippines, for his opening remarks and for his facilitation this week. I would also like to express 
my gratitude to His Excellency Martins Kreitus of Latvia for the role he has been playing as discussa nt 
in these proceedings.  
5.4.  Let me take this opportunity to reflect on some of the comments and questions. On trade 
facilitation Category B and C, many Members drawn attention to the work that remains to be done 
now that we have deposited our instrument of ac ceptance of the TFA, and also to the deadline of 
22 August that is rapidly approaching to notify PNG’s Category B and C commitments. I would like 
to reassure Members that the technical work required to prepare this notification has been done, 
and all that remains is for the Cabinet to endorse this decision. I am therefore confident that 
notification will be possible in advance of the deadline.  
5.5.  Considering that transparency is at the heart of the multilateral trading system, it is 
understandable that so many  Members have enquired about Papua New Guinea’s outstanding 
notifications in other areas. We also appreciate the empathy communicated by many Members 
regarding the difficulties faced by capacity -constrained states and non -resident members when it 
comes to filing notifications. In this regard, I just want to inform Members that we have followed up 
discussions with the Secretariat and I want to inform you that the Secretariat has positively 
responded to our request for technical assistance. We will, in the ne xt few months, commence and 
conclude our discussions with the Secretariat to ensure that we have capacity to comply with the 
notification process.  
5.6.  We appreciate Members’ interest in the ambitious liberalization that Papua New Guinea has 
pursued in recent years. However, we also take note of the concern raised by a number of Members 
that a small number of tariff lines may exceed bound rates. This is an important issue and we will 
consult internally to take stock of the situation and address any anomalies.  
5.7.  I would like to thank Members for their interest in PNG’s work to develop a legal framework for 
anti-dumping and countervailing measures, and for safeguards. The Government is still engaging in 
domestic consultations at this point. The development of these proposals is not at an advanced 
enough stage for us to discuss details, but we look forward to hearing other Members’ views later in 
the process, and we hope to be able to learn from other Members’ experiences.  
5.8.  Papua New Guinea notes concerns raised by var ious Members, that further work is needed to 
modernize law and policy in SPS and intellectual property rights. I also fully appreciate the many 
benefits of sharing draft legislation with the Membership here before finalizing each bill. Not only is 
this an opportunity to ensure that our laws are fully in line with our international commitments and 
obligations, but it is also an opportunity for us to draw on the collective experience of WTO Members 
for advice in making our rules more effective and easier to a pply. 
5.9.  We have heard advice from several Members about how we should go about capturing the 
greatest possible benefit from the new submarine fibre optic cable under construction between Port 
Moresby and Sydney. Adequate regulation is, of course, very import ant and we would endeavour to 
put this in place. The Wholesale Services Declaration No. 1 of 2018 requires the SOE that manages 
the Government’s share in the cable to allow open and non -discriminatory access to the cable’s 
capacity, based on the principles  of cost -based pricing and any -to-any connectivity.  WT/TPR/W/ 166 • Papua New Guinea  
 
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  5.10.   I would like to thank China for raising their concerns regarding the process and cost of 
obtaining work permits and visas. These concerns have been noted, and this is an issue that we will 
need to invest igate further.  
5.11.   As I mentioned on Wednesday, the National Trade Policy is an important achievement for our 
country, and so it is gratifying that so many Members have taken an interest in this work. However, 
we are well aware that the biggest challenge is al ways in implementation and we recognize the 
magnitude of the task ahead in turning our ambitions into reality. Among the first priorities will be 
to complete the creation of the National Trade Office to build the institutional capacity that we need 
to purs ue our other plans.  
5.12.   To conclude, on investment climate, it is heartening that so many Members have commented 
on recent improvements in PNG’s business environment. We will improve from the statistics that we 
have presented. We note, in particular, Members’ comments on the benefits that will follow from full 
implementation of the TFA, including concrete steps towards establishing a single window.  
5.13.   PNG has listened to the indirect encouragement from many Members to establish a Permanent 
Mission in Geneva. We re cognize the importance of a physical presence, and the benefits it will bring 
for our engagement in the multilateral trading system — so I believe the question is now “when” 
rather than “if” we take the next steps to make this a reality.  
5.14.   In conclusion, I would like to, once again, reiterate my thanks to all who have participated in 
Papua New Guinea’s third TPR. I would particularly like to emphasize my gratitude to the Pacific 
Islands Forum Secretariat Geneva Office, who have once again provided so much su pport to my 
delegation during this process.  
5.15.   Papua New Guinea remains committed to the multilateral trading system, and values the 
important contribution that the TPR process makes to transparency amongst the Membership. We 
are grateful to the Secretariat for making this review possible and to the many delegates that have 
engaged in a constructive debate with us about the trade policies. I thank you very much.  
DISCUSSANT  
5.16.   Let me thank Ambassador Kalinoe and the team from Papua New Guinea for the hard work 
and efforts in the preparations for this Review and for the comprehensive responses to Members’ 
questions and comments we have just heard.  
5.17.   I would also like to thank WTO Members for their active engagement in this Trade Policy 
Review. 12 Members submitted 12 7 written questions; and we have heard 21 statement from 
Members. I also appreciate readiness of Papua New Guinea to provide answers to some additional 
follow -up questions within timeline foreseen in Trade Policy Review process.  
5.18.   Ambassador Kalinoe, I woul d like to recall your statement on Wednesday, when you described 
the TPR mechanism “as an important check and balance in the WTO, which promotes transparency, 
accountability and predictability amongst Member countries”. I can fully agree to that, particula rly 
in my capacity as a discussant. I also believe that for the country under the review it also serves as 
a very practical exercise for effectiveness of coordination of trade issues among various government 
institutions – as shown by Papua New Guineas res ponses to Members’ questions.  
5.19.   I spoke at length on Wednesday so I will only make a few quick comments based on 
statements we have heard during the two days.  
5.20.   Papua New Guinea was praised for its openness to international trade, broad and 
comprehensive polic y reforms, tariff liberalization and commitment to the multilateral trading 
system.  
5.21.   Almost every intervention acknowledged adoption of country’s firsts National Trade Policy. 
Many delegations congratulated Papua New Guinea for successfully hosting APEC in 2018, 
showcasing its hospitality, economic potential and its role towards Pacific regional integration. Many 
interventions acknowledged notable economic growth despite the challenges presented during the WT/TPR/W/ 166 • Papua New Guinea  
 
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  review period. Members encouraged Papua New Guinea t o continue its efforts in opening up its 
economy and improving business environment to attract foreign investment.  
5.22.   Members welcomed Papua New Guineas constructive engagement in the fisheries negotiations 
and its commitment to sustainable management of its fisheries resources.  
5.23.   Acceptance of Trade Facilitation Agreement and notification of Category A commitments was 
well noted, as well as concrete steps already taken in trade facilitation. Papua New Guinea was 
encouraged to continue TFA implementation, notab ly to notify its Category C and B commitments. I 
note with pleasure reassurances we have heard from Ambassador Kalinoe in this regard.  
5.24.   On intellectual property, Members welcomed the acceptance of Protocol Amending the TRIPS 
Agreement and the development of  National IP plan. However, there were concerns about legal and 
institutional framework for effective enforcement of intellectual property rights.  
5.25.   Members also noted legislative developments in public -private partnership and government 
procurement framewor k; submission of the first domestic support notification; and a cross cutting 
approach to women and trade issues in the Governments report. Papua New Guinea was encouraged 
to consider joining the Information Technology Agreement and the Government Procurem ent 
Agreement, as well as participating in the Joint Statement Initiative on e -commerce.  
5.26.   In their statements Members also identified several other areas which would benefit from 
further attention on the part of the Papua New Guinea’s Government.  
5.27.   A number o f members draw attention to importance of timely notifications while also 
welcomed Papua New Guinea for seeking assistance from the WTO Secretariat on this matter – we 
have heard on concrete steps Papua New Guinea is taking to increase the awareness of thi s matter 
among various government agencies. Members also have encouraged Papua New Guinea to improve 
its SPS legislation. Concerns were raised about some import restrictions and 23 tariff lines exceeding 
scheduled bound tariff rate commitments.  
5.28.   In conclusi on, I was privileged to have participated as a discussant in Papua New Guinea’s 
Trade Policy Review. I believe the Papua New Guinea delegation has found this Trade Policy Review 
useful. I was encouraged by commitments and concrete steps envisaged by Papua New Guinea to 
engage further on important questions we have discussed during this review. I would like to wish 
Papua New Guinea continued success in its economic and trade policy reforms in achieving the goals 
of National Trade Policy. I wish to thank all Members for active participation and Ambassador 
Teehankee of Philippines for steering us through this meeting. Let me also to acknowledge the 
support rendered by WTO Secretariat team. Thank you.  
INDONESIA  
5.29.   This trade policy review process is important to In donesia. Not because we share a common 
territorial land border, which runs over 800 kilometres in length. And not only because the people 
of PNG, and Indonesians living in the neighbouring Indonesian provinces, share much cultural and 
ethnical backgrounds.  But, also because the government of Indonesia and Papua New Guinea, have 
been and are increasingly forging a mutually beneficial bilateral trade relation.  
5.30.   The implementation of WTO consistent trade policies in PNG is as important to Indonesia, as 
the impl ementation of WTO consistent trade policies in Indonesia is important to PNG – and 
especially, since bilateral trade have been increasing overtime.  
5.31.   In numbers, for the time period between the year 2014 and 2018, the average yearly growth 
of bilateral trade  recorded a 7.04% growth. For the same 2014 to 2018 time period, the average 
yearly growth of Indonesian exports into PNG recorded a 10.14% growth; while, exports from PNG 
into Indonesia recorded a 10.60% growth – which is a stronger growth rate than the p enetration of 
Indonesian exports.  
5.32.   Excellencies, members of the delegation from Brussels and Port Moresby, Indonesia applauds 
Papua New Guinea, for their tireless endeavour to integrate its economy into the global value chain. 
We congratulate PNG for the adoption of its first ever National Trade Policy for the period of 2017 to WT/TPR/W/ 166 • Papua New Guinea  
 
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  2032. We are also encouraged by the positive development in PNG, in terms of putting in place a 
legal framework for the public -private partnership.  
5.33.   Indonesia also sees much scope, yet to be explored in our bilateral t rade-related ties. And 
Indonesia does not discount that certain protective measures is imminent in the noble attempt to 
diversify the economy away from PNG’s traditional growth -enhancing extractive sectors.  
5.34.   And, hence, we are interested also in learning mo re on some trade -related policies and 
practices implemented by PNG. It is our hope that this TPR process can serve as a forum, to step 
back and analyze, the main obstacles to enhancing our efforts for a deeper trade -related economic 
and investment cooperat ion. 
5.35.   PNG qualifies as a strategic partner to Indonesia. This is demonstrated by the various Mode 
3 services cooperation we managed to undertake during the time frame of the current review period 
– amongst them in air transport, energy, and telecommunicatio n sectors. These are amongst the 
sectors identified as needing fresh injection of foreign investments in order to assist PNG in reducing 
the costs of doing business.  
5.36.   Our effort to expand Indonesia’s business operation is PNG is pending to the completion of  a 
double taxation treaty between Indonesia and PNG.  Hence, Indonesia looks forward to the 
government of PNG working closely with the parliament of PNG, in expediting the signing and the 
ratification process – so as to level the playing field vis -à-vis po tential investors from other WTO 
members who are already in the possession of a double taxation treaty of PNG.  
5.37.   Indonesia notes that import tariffs in the agriculture sector remains high. Yet, we are also 
aware of the findings that the agriculture sector in  PNG is not the most efficient, and that production 
yield is low. Thus, we would like to inquire, how is it that this high tariff would indeed help in attaining 
food security instead of working against it.  
5.38.   Indonesia also notes that PNG imposes restrictions  for frozen meat imports from Indonesia, 
as well as requires that Indonesian dairy products be approved by the Ministry of Health of PNG. We 
would like to inquire whether these practices are being implemented on a non -discriminatory basis; 
or is it part of  the case on the weakness of the PNG SPS approval mechanism, as indicated in the 
Secretariat report.  
5.39.   We have included these inquiries in our written questions that we have submitted. And we 
convey appreciation, in advance, for the responses we would receiv e from the delegation of Papua 
New Guinea in the course of the next phase of this TPR process. We look forward to following up on 
these inquiries with the delegation of PNG in the very near future.  
5.40.   And in conclusion, my delegation wishes His Excellency Amb assador Joshua Kalinoe and his 
delegation, success in this Trade Policy Review.  
UNITED  STATES  
5.41.   We sincerely thank you, Ambassador Kalinoe and discussant Ambassador Kreitus for your 
insightful remarks this morning. We would also like to express our appreciat ion to the Secretariat 
and to the entire Papua New Guinea delegation for their constructive and diligent efforts throughout 
their third Trade Policy Review. Congratulations on a successful review.  
5.42.   We recognize all of the hard work involved in the review p rocess and thank the delegation for 
the detailed responses provided to our questions. Our authorities in Washington are reviewing them 
very carefully.  
5.43.   We are pleased to see that Papua New Guinea has prioritized the implementation of trade 
facilitation obligations under its first National Trade Policy. We welcomed the update that your 
Category B and C commitments are moving through your internal Governmen t process for 
endorsement. We urge Papua New Guinea to notify the definitive dates for its Category C 
commitments by August 22nd, 2019, as called for in the Trade Facilitation Agreement. We are 
pleased to hear this morning, Ambassador Kalinoe, that you are  confident for happening before 
August 22nd. According to the Agreement’s text, failure to notify in a timely manner will deprive your WT/TPR/W/ 166 • Papua New Guinea  
 
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  country of the flexibilities and capacity -building assistance available to Members under the 
Agreement, and we want to en sure that Papua New Guinea will not lose this important benefit. We 
were also encouraged to hear of your consideration of several important treaties which would provide 
improved protection for intellectual property rights and we urge you to undertake a nat ional effort 
to improve these important protections. Finally, we look forward to learning the scientific basis for 
the moratorium on raw poultry and encourage Papua New Guinea to share the results of their review 
on this matter.  
5.44.   The United States wishes to  thank Papua New Guinea delegation for its efforts with this 
review, its attention to our questions, and important leadership role as APEC host in 2018. We look 
forward to further cooperation with Papua New Guinea on bilateral and multilateral trade matter s. 
Please accept our best regards, and our wish for safe travels to those returning to capital.  
CANADA  
5.45.   Last Wednesday, Canada noted that Papua New Guinea was subject to category 1 
administrative measures with respect to its contribution to the WTO. We und erstand that Papua New 
Guinea has now submitted its contribution to the WTO. We welcome this news and thank Papua New 
Guinea. It illustrates Papua New Guinea's commitment to the multilateral trading system.  
5.46.   In closing, I would also like to thank the Ambass adors and everyone involved in this very 
useful and important Review.  
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This third Trade Policy Review of Papua New Guinea has offered us a good opportunity to 
deepen our understanding of recent developments in, and ch allenges to, its trade, economic, and 
investment policies. Our discussion has benefited from the active participation of the PNG delegation, 
led by Ambassador Joshua Kalinoe, as well as from the contribution of our discussant, Ambassador 
Martins Kreitus, P ermanent Representative of Latvia to the WTO. I would also like to thank the 
21 delegations that took the floor for their interventions.  
6.2.  Members commended Papua New Guinea for its positive economic performance during 2010 -18 
which was attributed, among oth er, to prudent macroeconomic management and increased 
revenues from LNG exports. They highlighted that despite its considerable exposure to natural 
disasters and climate change, PNG had managed to achieve reasonably strong rates of economic 
growth for most  of the review period and maintain a positive economic outlook. Nonetheless, it was 
noted that a big earthquake in 2018 had caused extensive damage, weakened PNG's external 
position and created fiscal challenges.  
6.3.  Papua New Guinea was praised for adopting i ts first ever National Trade Policy, covering the 
period 2017 -2032. Members hoped that, together with the newly established National Trade Office, 
it would help to make PNG's business environment more competitive. Members also noted PNG's 
general openness to foreign investment and its recognition of the important impact it can have on 
economic development. Members indicated that further regulatory reforms and opening of the PNG 
economy would stimulate commercial activity and growth. At the same time, PNG wa s encouraged 
to step up efforts to diversify its production and export base, as well as to alleviate poverty and 
promote social inclusion, particularly in rural areas. Several Members commended PNG for its efforts 
at making economic growth more inclusive a nd for promoting the participation of women.  
6.4.  Against the background of the growing role of trade in its economy, PNG's strong commitment 
to the WTO was greatly appreciated. Members also welcomed PNG's notification of its Category A 
commitments under the Ag reement on Trade Facilitation (TFA) and praised it for having deposited 
its instrument of acceptance of the TFA, and for having accepted the Protocol Amending the TRIPS 
Agreement. Members strongly encouraged PNG to notify its Category B and C commitments u nder 
the TFA and urged it to fulfil its notification obligations in areas such as agriculture, SPS, TBT, 
customs valuation, and import licensing with a view to enhancing transparency and predictability. 
PNG was also invited to consider joining the Governme nt Procurement Agreement and the 
Information Technology Agreement and participating in the Joint Statement Initiative on Electronic 
Commerce.  
6.5.  Members noted with satisfaction that PNG's simple average applied tariff was 3.9% in 2019, 
down from 5.1% in 2010.  Several Members mentioned with concern that applied tariff rates on 
certain products appeared to exceed their corresponding bound rates and encouraged PNG to bring 
these tariff rates within the bound levels. In their written questions, some Members also f lagged 
recent tariff increases on approximately 300 lines. Notwithstanding the recognition of PNG's 
important leadership role in regional integration efforts, notably as the APEC host in 2018, concerns 
were raised about its membership in overlapping region al trade agreements. Noting that trade 
liberalization must go hand in hand with comprehensive policy reforms, some Members underlined 
the importance of continued technical assistance for PNG's enhanced participation in the WTO.  
6.6.  In their oral interventions  and written questions, Members sought clarification from Papua New 
Guinea on several issues, including: plans to simplify customs clearance through the creation of a 
single window for traders; the status of PNG's Tariff Reduction Programme; the outdated S PS and 
TBT regimes; the scientific basis for certain import restrictions; draft legislation concerning 
anti-dumping, countervailing and safeguard measures; the competition regime and the role of state 
owned enterprises vis -à-vis private firms; efforts to d evelop a national intellectual property plan and 
align the existing legal framework to the WTO TRIPS Agreement; and implementation of 
public -private partnership and government procurement reforms.  
6.7.  On agriculture, many Members noted the significance of this  sector for PNG's exports and rural 
development and praised PNG for having submitted its first domestic support notification to the 
WTO. PNG was encouraged to pursue further improvement of rural living standards, for example 
through better access to credit  and basic energy services. Noting PNG's constructive engagement in WT/TPR/W/ 166 • Papua New Guinea  
 
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  the negotiation on a fisheries subsidies agreement, some Members enquired about its control and 
monitoring capacity and policies on foreign flagged fishing vessels. Members also expressed interest 
to know more about the development of LNG projects, the key driver of PNG's economic growth, 
and its impact on other sectors, notably manufacturing given PNG's comparative advantage in 
resource -based industries. On services, it was noted that PNG' s vast potential for attracting foreign 
tourists and fostering employment and economic growth remains largely untapped. In this regard, 
PNG was urged to further improve essential infrastructure, especially electricity, 
telecommunications, and transport, mu ch of which is still operated by state -owned, including 
monopoly, enterprises.  
6.8.  Papua New Guinea has provided answers to most of the more than 120 written questions raised 
by Members. This TPR will be successfully concluded once PNG has replied to all outst anding and 
follow -up questions that emerged during the meeting in a month's time. I hope that the discussion 
held during this Review will prove useful to Papua New Guinea in the continued implementation of 
economic and trade reforms and in its pursuit of p olicies to further enhance competitiveness and 
achieve sustainable growth.  
__________