RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/239 
12 October 2010  
 
(10-5165) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
PAPUA NEW GUINEA 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Papua New Guinea is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Poli cy Review Body on Papua New Guinea.Papua New Guinea WT/TPR/G/239 
 Page 3 
 
 
CONTENTS 
 
 Page 
I. MACROECONOMIC PERFORMANCE 5 
II. PAPUA NEW GUINEA'S VISION FOR DEVELOPMENT 7 III. TRADE POLICIES AND PRACTICES 9 
IV. TRADE POLICIES BY SECTOR 11 
 (1) A
GRICULTURE  11 
 (2) F ORESTRY  12 
 (3) F ISHERIES  13 
 (4) M INING   14 
 (5) P ETROLEUM (OIL AND GAS ) 15 
 (6) M ANUFACTURING         1 7  
 (7) S ERVICES  18 
 (8) T RANSPORT  20 
 (9) I NTELLECTUAL PROPERTY RIGHTS  20 
V. CONCLUSION  22 
ANNEX 1:  TRADE RELATED TECHNICAL ASSISTANCE 23 Papua New Guinea WT/TPR/G/239 
 Page 5 
 
 
 I. MACROECONOMIC PERFORMANCE1 
1. After a long period of stagnation experienced during the 1990's, Papua New Guinea showed 
positive economic growth over the last decade with  a GDP growth average of around 5-6% and 
reaching 7.2% in 2008. This strong growth was attributed mainly to the commodity price boom enhanced by structural reforms and supported by the Government's prudent macroeconomic and fiscal 
policies. 
2. As a small commodity exporting economy, Papua  New Guinea's economic performance is 
influenced by international prices movements for tradable goods. Between 2005 to 2007, Papua New 
Guinea experienced a commodity price boom for its mi neral and oil exports; as well as for its main 
agricultural exports. However, in the second half of 2008, prices began to fall sharply for most of the 
major export commodities, with the exception of copper and crude oil and this was mainly due to the 
global economic downturn in September of 2008.  
3. A major contributing factor that helped Papua New Guinea moderate the negative impacts of 
the global economic recession and maintain sustaine d periods of uninterrupted economic growth has 
been the current Government's prudent economic and fiscal management. In 2006, the Government 
introduced the Fiscal Responsibility Act (2006), which aims for greater accountability and tighter discipline on Government expenditure.  
4. The Government also adopted the Medium  Term Fiscal Strategy (MTFS) from 2008-2012, 
another key platform that has supported Papua New Guinea's economic growth by guiding the 
Government through challenges faced in the comm odity boom years and through the global economic 
recession.  
5. The Government has managed to contain in flation during the commodity price boom by 
controlling excessive government spending from tr ust accounts. The MTFS also strengthened the 
Governments fiscal position by reducing government de bt to sustainable levels by using 'windfall' 
revenues that flowed in from the commodity b oom to pay off government debt.  Currently, 
government debt is around 23% of GDP.  
6. In the periods of the commodity boom, Papua New Guinea maintained a strong balance of 
payments position due to trade surpluses in the cu rrent account. However, while there was an overall 
surplus in the balance of payments reported in Sept ember of 2009, this was mainly due to a significant 
surplus in the capital accounts, whic h more than offset a deficit in the current account. The surplus in 
the capital accounts was attributed to higher net in flows of Foreign Direct Investment (FDI). The 
current level of reserves amounts to US$2.2 billion, wh ich is sufficient to cover 4.4 months of imports 
and 10 months of non-mineral impor ts. This is a positive improvement  in the economy since the last 
Trade Policy Review (TPR), when reserve levels were only able to cove r 1 month of imports.  
7. Inflation declined from high levels of around 20%, which were reported in the 1999 TPR to 
lower levels during the commodity boom years. Ho wever, peaked to 13.5% in late 2007 and fell to 
about 5.7% in the December quarter of 2008. In 2009, inflation rose by 6.7% in the year to June quarter of 2009 and is projected to be around 7.4% in year average terms.  
                                                     
 
1 All information included here on the Macroeconomic Environment is provided by the Department of 
Treasury, Bank of Papua New Guinea (BPNG) and Papua New Guinea Resident Mission of the Asian 
Development Bank (ADB). WT/TPR/G/239 Trade Policy Review 
Page 6 
  
 8. The major factors that have seen inflation m oderate from 2008 levels include: the reversal of 
the international drivers of infla tion such as oil and food prices in 2008; the lagged effect of the 
appreciation of the Kina in the latter half of 2008 (although this has been  unwound in the second half 
of 2009); and the tightening of monetary policy by  the Bank of Papua New Guinea (BPNG) in the 
second half of 2008. However, inflation remains at  high levels due to st rong domestic demands and 
very high levels of governme nt spending from trust funds. 
9. Since the last TPR, the Government has also emba rked on substantial structural reforms in the 
communication, transport and financial sectors. The communications sector has seen another new competitor, Digicel enter the mobile phones sect or. The aviation sector has also seen a new 
competitor, Pacific Blue enter the market and is now servicing some international routes, which were 
originally serviced by the national flag carrier. Subs tantial reforms have also been carried out in the 
financial sector, which has seen the Bank of Papua New Guinea become independent from the 
Government and seen removals on lim itations on capital transactions.  
10. These structural reforms have enhanced dom estic economic activity and are considered 
generally conducive for the business environment. C onsumers have also benefited from these reforms 
by having wider coverage and access to these services with wider variety of products to choose from 
at lower prices. 
11. In September of 2008, the world experienced  the worst global economic downturn since the 
1930s. As a small, open economy Papua New Guinea was not immune to the impacts of the global 
economic recession. The main transmission of the impacts of the recession was through the prices for 
our major commodities, which began to fall sharply in  the first half of 2009 and in turn affected 
government revenues. The Government reacted quick ly to the economic downturn by introducing a 
large stimulus package to encourage domestic  economic activity through a supplementary budget 
in 2008 (over 7% of GDP), which was largely finan ced from 'windfall' revenues that were built up in 
trust accounts during the commodity price boom.  
12. The financial and banking system were rela tively unaffected and continued to operate 
normally during the financial crisis due to sound regulation, good capitalization and minimum 
exposure to risky overseas assets since most national banks are funded from local rather than 
international capitals. Business c onfidence in the country was fort unately not shaken, as businesses 
continued to anticipate greater domestic economic activity generated by the Liquefied Natural Gas 
(LNG) Project. 
13. The general economic outlook remains somewhat  bright with the LNG Project in its 
construction phase and higher prices expected for ag riculture and mineral commodities. Employment 
is also expected to increase as a result of the LNG construction. A new mining project (Ramu Nickel 
Mine) and increased production of existing mining projects are expected to boost mining output, 
despite a decline in oil production. The government is  also expected to moderate its draw down from 
trust funds. However, inflation is expected to re main high due to rising domestic demand, high global 
commodity prices and a high inflow of investments
2. 
14. There are also other challenges that need to be addressed to support further economic growth, 
including the need to get back to tighter discip lines on government spending and the need for closer 
coordination of fiscal and monetary policy to control inflation. It is  also recognized that Papua New 
                                                      
2 Asian Development Outlook 2010, pp 242 – 245. Papua New Guinea WT/TPR/G/239 
 Page 7 
 
 
 Guinea must expect to live in a higher inflationa ry environment and all policies must be adjusted 
accordingly. 
II. PAPUA NEW GUINEA'S VISION FOR DEVELOPMENT 
15. The PNG Vision 20503 is the National Government's strate gic directional Statement that will 
drive the development process over the next 40  years. The PNG Vision 2050 has seven (7) 
Development Pillars (focus areas), which will beco me the foundation upon which development plans 
from 2010 to 2050 will be anchored.  The strategy w ill translate these focus areas into a statement of 
achievable objectives and serves as a framework in  which sectoral plans will be  prepared and 
implemented in a logical and sequential manner inst ead of the ad-hoc approaches as experienced thus 
far. 
16. The Plan seeks to address Papua New Guinea' s low social and economic indicators despite 
being blessed with abundance of wealth in natural resources.  At the heart of the whole PNG Vision 
2050 program will be Service Delivery, Wealth Cr eation and Human Developm ent. All other pillars 
critically support these three core development areas: 
(i) Under Service Delivery, the focus is on de veloping better platforms to ensure services 
are directly delivered to the people of the country; 
(ii) Wealth Creation will ensure that 70% of the country's income is derived from 
renewable resources areas in Agriculture, Fisheries, Forestry and Eco-Tourism as 
opposed to reliance on the non-renewable resources sector; and 
(ii) Human Capital and entrepreneurial sk ills development will also be focused and 
developed to bolster a knowledgeable a nd productive human resource for a smart 
country and people by 2050 and beyond. 
17. The Strategic Direction in the PNG Vision 2050 states that "Papua New Guinea will develop 
and grow the Manufacturing, Services, Agriculture,  Forestry, Fisheries and Eco-tourism sectors from 
2010 to 2050".   These directions will ensure that economic growth by 2050 will be broad-based 
ensuring that disposable household income will be mu ch higher than it is from current projects, which 
should trigger an exponential improvement in the Human Development Indicator (HDI) ranking.   
18. The 7 Strategic Focus Areas, which are referred to  as the 7 pillars will strive to achieve 7 key 
outcomes within the next 40 years: 
(i) Human Development and People Empowerment will address the improvement of 
human development from 116/179 to 50/179 in the poverty index and life expectancy from 57 to 77; free education and  universal  basic education to ensure improvement 
for adult literacy, as well as enhance technical  and vocational education; and Health - 
HIV/ AIDS prevalence from 1.8% to 0.1% and other health issues; 
(ii) Wealth Creation will focus on downstre am activities, export oriented economy and 
impact projects in the rural areas; 
                                                     
 
3 All information on the PNG Vision 2050 is provided by the Department of Prime Minister and 
National Executive Council (DPM&NEC) and the PNG Vision 2050 Centre. WT/TPR/G/239 Trade Policy Review 
Page 8 
  
 (iii) Institutional Development and Service Delivery will focus to complete the public 
sector reform that is performance based a nd highly educated public servants, as well 
as infrastructure development, communication, etc. ...; 
(iv) Security and International Development will aim to improve Papua New Guinea's 
ranking from 158/180 to 50/180 in the corrup tion index and maintain that ranking, 
improve police personnel ratio, reduce forei gn aid, and  improve trade and establish 
trade commission offices in 50 countries;  
(v) Climate Change and Environment will ai m to reduce Green House Gases (GHG) by 
90%, conserve biodiversity of 5-7% of gl obal total, establish national reserves and 
national parks at one (1) million hectares of marine protected area, etc. …; 
(vi) Strategic Planning will ensure Devel opment Plans for 20 provinces and 89 districts 
will align with Vision 2050 and the Medium  Term Development Strategies (MTDS) 
and sector plans to align with Vision 2050; and 
(vii) Church Development will aim to improve church based health and education services 
in the rural areas. 
19. The directional statements will be operationa lized through programs and projects to realize 
aspirations and objectives of the 7 pillars.  It is anticipated that these achievements will lead to a 
smart, wise, vibrant and happy Papua New Guinea by 2050 and be manifested through an 
improvement in the current HDI ranking of 145/179 to around 50/179 by 2050. 
20. The PNG Vision 2050 is a high priority reform  and development program of the Government. 
Given the broad and long-term nature of the Pr ogram, it will require effective coordination in 
planning and implementation, including the sustai nability of the vision with its mission, goals, 
programs and activities. As an overarching long term de velopment plan that cuts across all sectors, the 
PNG Vision 2050 will require all other short to me dium term policies a nd programs, including 
sectoral policies and programs to be aligned with it.    
21. All on-going and new projects that relate to institutional development and service delivery, 
human resources development and wealth creati on would be aligned and implemented under the 
auspices of the PNG Vision 2050 over the medium  to long term. The reforms to the three-tier 
government system, piloting the development of an  appropriate Service Delivery Mechanism Model 
(SDDM) focusing at the ward and district levels will  be the first initiatives to be implemented starting 
in 2010. 
22. Further to the PNG Vision 2050, the Long Term Development Strategy (LTDS) 2011-2030 is 
a 20 year strategy that will provide the overa rching policy oversight and guidance for all the 
development agendas and sectoral strategies. From 2011, the LTDS will comprise four (4) successive 
five-year Medium Term Development Plans.
4  
                                                      
4 Department of Treasury, 2010 National Budget , Economic and Development Policies Volume 1, 
pg. 94. Papua New Guinea WT/TPR/G/239 
 Page 9 
 
 
 III. TRADE POLICIES AND PRACTICES 
23. Papua New Guinea's trade policy5 has focused primarily on tariff liberalisation, removal of 
non-tariff barriers to trade, providing tariff protection for specific local industries and undertaking negotiations on trade agreements. Guided by its  development objectives, Papua New Guinea has 
pursued its trade policy in two major policy areas,  which are making appropriate interventions on 
imports and enhancing market access for exports.  
24. Firstly, the intervention on imports has been through the setting of import tariffs to ensure 
liberalisation with exceptions for domestic industri es. The Tariff Reform Program (TRP), which the 
Government embarked on from 1999-2006 had the obj ective of creating a more efficient and 
productive private sector through increasing intern ational competition in the domestic economy. 
Under the TRP, tariffs were gradually reduced through a planned schedule of reductions, which was 
legislated within the Customs Tariff Act
6. Tariffs have been substan tially reduced under the program 
with currently over 70% of total tariff lines at duty free from just 2% in 1999.  
25. The Government introduced a 10% Value Adde d Tax (VAT) for all goods and services across 
the board, in order to offset the revenue losses from tariffs. 
26. In 2006, tariff contribution to Government revenue  accounted for only 3% of the total revenue 
or about PGK 96.9 million, whereas in 1998 tariffs accounted for over PGK 394 million or 17.3% of 
total revenue. On the other hand, GST and excise du ties accounted for 18.3% of total revenue or PGK 
815.2 million in 2006. Tariffs are now used as the main policy instrument for protecting and promoting domestic industry rather than for revenue generation purposes. 
27. A review was undertaken in 2007, which provided a set of broad recommendations to guide 
the program in its next steps. The review noted th at the TRP had achieved its expected objectives with 
efficient firms continuing their operations while inef ficient firms have closed down. The review also 
noted that inadequate progress in addressing the stru ctural impediments and associated business costs 
has constituted a serious policy failure, which must be rectified if the future tariff policy is to produce 
its desired results. 
28. The program was suspended in 2008 due to  the global economic downturn, which had 
affected high commodity export prices during the commodity boom, which in turn affected 
Government revenues. While the Department of  Treasury generally subscribes to the general 
recommendations in the 2007 Review it is cautious in implementing the next stages of the program 
taking into consideration developments in the global economic environment and strong industry 
pressure to maintain the current levels at this time of economic uncertainty. The Department of 
Treasury is now considering 'partial' or 'sector sp ecific' implementation of the program rather than 
progressing through the agreed general framework,  however, this remains to be confirmed. 
29. Papua New Guinea maintains no import quotas, export licenses, or tariff rate quotas. The 
export tax on exports of unprocessed logs remains in  place and will be discussed later in the Forestry 
sector.  
                                                     
 
5 All information on Papua New Guinea's Trade Policie s and Practices is provided by the Department 
of Foreign Affairs and Trade with inputs on specific issues provided by respective line Departments and Agencies. 
6 White Paper on the Tariff Reform Programme, Presented to the National Parliament by the Minister 
for Finance, 1999. WT/TPR/G/239 Trade Policy Review 
Page 10 
  
 30. Secondly, Papua New Guinea continues to nego tiate trade agreements to gain improved 
market access for its exports  to international markets. 
31. At the bilateral level, Papua New Guinea enga ged in two (2) agreemen ts namely, Papua New 
Guinea/Fiji Bilateral Trade Agreement and Papua  New Guinea/Australia Trade and Commercial 
Agreement (PATCRA). However, parties do not c onduct trade under both these agreements as they 
have been superseded by other trading arrange ments. Additionally, under the Business Council Group 
(BCG) arrangement, a Memorandum of Unders tanding (MOU) was signed between Papua New 
Guinea and the State of Queensland in Australia to cooperate on different areas of development, 
including trade. 
32. At the sub-regional level, Papua New Guinea is a member of the Melanesian Spearhead 
Group (MSG), which was formed in 1986 to foster cultural and political co- operation between Papua 
New Guinea, the Solomon Islands and Vanuatu. Over time, the interests of the organisation evolved 
into co-operation on a number of fronts, most prominently free trade between member countries. Its membership, which includes Fiji now constitute over three quarters of the population, land area and 
GDP of the Pacific Island Countries (PICs). 
33. In the Pacific region, Papua New Guinea is a party to the Pacific Islands Countries Trade 
Agreement (PICTA), South Pacific Agreemen t on Regional Trade and Economic Co-operation 
(SPARTECA), and the Pacific Agreement on Closer Economic Relations (PACER). 
34. Papua New Guinea is the only PIC member of the Asia Pacific Economic Cooperation 
(APEC).  
35. Within the ACP-EU arrangements on Economic  Partnership Agreement (EPA), Papua New 
Guinea and Fiji are only two (2) of the fourteen (14) Pacific ACP (PACP) countries to sign the iEPA. 
Papua New Guinea and Fiji negotiate d and concluded the iEPA to en sure that Papua New Guinea's 
canned tuna exports and Fiji's suga r exports were secured for prefer ential access into the EU markets 
after 31 December 2007 when the WTO waiver expired.  
36. Papua New Guinea is a member of the Wo rld Trade Organization (WTO) and remains 
committed to the multilateral trading system as we ar e highly integrated into the international trading 
system.  International trade, that is: exports of goods and services presently account for over 90% of 
the Papua New Guinea's GDP.  
International Trade Policy and the PNG Vision 2050  
37. In the PNG Vision 2050, International Trade Re lations and Trade Policy feature prominently 
under Pillar No. 5, which is Security and Internat ional Relations Strategy (S&IRS). The running 
theme adapted in the PNG Vision 2050 Framework unde r the S&IRS is for Papua New Guinea to be a 
'Happy and United Country' in 2050. From this th eme and vision, the S&IRS embraces the sub-vision 
statements featuring: 
(i) Papua New Guinea's rich cultures and vast delivery as blessings; (ii) The need for the possession of effective and efficient internal security and legal 
systems and institutions; and  
(iii) The need for the possession of positive, constructive and progressive international 
relations in trade, diplomacy and security. Papua New Guinea WT/TPR/G/239 
 Page 11 
 
 
 38. Since Independence, the expansion and growth of trade has been pursued and implemented 
through the various sectoral policies. However, in light of the objectives of the PNG Vision 2050 the growing interests in Papua New Guinea on envir onmentally-friendly and sustainable trade, with a 
particular focus on sustainable agriculture, forestry and fisheries, the formulation of a comprehensive 
trade policy is necessary to ensure that Papua Ne w Guinea reduces its excessive reliance on mineral 
resources and support the diversification of PNG's economy, which must be consistent with Papua 
New Guinea's development policy and its constitution.   
39. Papua New Guinea remains committed to a tr ade policy focussed on economically viable 
downstream processing and value added production of  its natural resources, as well as economic 
diversification to utilise international trad e for economic growth and development.  
IV. TRADE POLICIES BY SECTOR 
40. In a broad context, Papua New Guinea has made  notable progress in developing policies and 
undertaking reforms to capture the new global devel opments and ensure sustainable growth in the 
economy.  
41. The Government's ongoing support and commitment  will be to continue to monitor and assess 
existing reform initiatives that may need further improvement and undertake new reforms in critical 
sectors of the economy where required. Furthermore,  the Government will continue to improve the 
regulatory environment and remove impediments to  doing business and investment, which will assist 
in providing a stable investment climate as pa rt of the Government's ongoing support and 
commitment to providing a conducive environment for the growth and expansion of the private sector, 
which is an integral part of economic de velopment and growth in Papua New Guinea. 
(1) A
GRICULTURE  
42. The agriculture sector is dominated by subsis tence production and plays an important role in 
providing income earning opportunities to the rural areas in which over 85% of the population live. 
This sector contributes significantly towards em ployment, income generation and subsistence 
consumption.  
43. Whilst recognising the critical role that this sector plays, as well as recognizing the potential 
of agriculture to sustain the basic livelihoods of the rural majority, the National Agriculture 
Development Plan (NADP) 2007-2016 was formulated  and adopted by the Government.  The NADP 
aims to sustainably transform the country's agri culture sector into a vibrant and productive economic 
sector that contributes to economic growth, social wellbeing, national food security and poverty alleviation. 
44. The key priorities of the NADP include: researc h and extension; training and information; 
industrial tree crops, food and horticulture; spic es and minor crops; livestock, apiculture and 
aquaculture; gender and social issues and HIV/ AIDS; regulatory and technical services; and 
strengthening of the NADP management. 
45. The Government has committed K100 million to fund the implementation of the NADP 
annually between 2007 and 2016.
7 
                                                      
7 Department of Treasury, 2010 National Budget , Economic and Development Policies Volume 1, 
pg. 111. WT/TPR/G/239 Trade Policy Review 
Page 12 
  
 (2) F
ORESTRY8 
46. About two-thirds of Papua New Guinea's total land mass is covered by forest totalling to 
about 46 million hectares. 15 million hectares cont ains rich timber species and is considered 
"operable" and available for development. The for est sector is mainly log export oriented and about 
2 million cubic metres of tropical logs exported annually. The forestry sector contributes to Government revenue through tax, levies and royalty payments making it the third largest revenue 
earner for the Government and the largest non-mi neral export for Papua New Guinea. In 2005, the 
sector contributed about K742.2 million or 9.2% of  GDP. The sector employs directly 7,000 people 
that consist of both skilled and semi-skilled workers.  
47. The main export markets are China, which imports about 80% of total exports in round log 
form, Japan which imports wood chips primarily fo r the production of paper; and Australia which 
import mainly high end timber products such as plywood. 
48. The Papua New Guinea Forest Authority (PNGFA)  is the Government Regulatory Authority, 
which was established under the National Forest Act (1991), primarily responsible for ensuring the 
sustainable management of the resource. The PNGF A continues to be guided by the National Forest 
Policy of 1991. The main thrust of the policy is to manage the resource in a sustainable way to achieve economic growth, to create employment opp ortunities for Papua New Guinean's by increasing 
their participation in the industry and to  encourage and increase downstream processing. 
49. In order to achieve the objectives of the policy, the Government continues to employ two 
main policy instruments, which include export taxes to encourage downstream processing and 
restrictions on the export of high value species in round log form. 
50. The Government continues to use export taxes as a tool to encourage downstream processing 
even though the last TPR was highly critical of its use. Downstream processing of forest products in 
Papua New Guinea has been the f astest growing manufacturing sector of the economy. Log exports 
have declined over 33% since 1997 during the Asian Fi nancial Crisis and have declined again since 
2004 compared to 2003 at a time when other timber exporting countries where increasing production and exporting. Exports of downstream processing pr oducts (in US$ value) have increased by over 
200% since 1997 and by almost 10% in 2004 compared to 2005. 
51. To support the policy objective of downstream policy, the Forestry Minister has announced 
that that all new allocations to be exported will have  to be in processed form beginning in 2010. The 
industry is currently dominated by large scale comp anies owned by Malaysia, Japan, and China. Local 
participation is mainly limited to small scale activities. 
52. The Government continues to encourage local pa rticipation in the industry but recognizes that 
the industry is capital intensive and the major impedi ment for greater participation of locals in the 
industry continues to be the high starting capital whic h is not readily available to resource owners in 
remote areas. The Government does not provide direct financial assistance to locals but provides support mainly through the form of technical advice. 
53. To achieve its objective of sustainable mana gement, the PNGFA has developed its national 
Logging Code of Practice and other similar tools and guidelines. To support its efforts, the PNGFA 
also subscribes to a number of international orga nizations such as International Tropical Timber 
                                                     
 
8 All information on the Forestry Sector is provided by the Papua New Guinea Forest Authority 
(PNGFA). Papua New Guinea WT/TPR/G/239 
 Page 13 
 
 
 Organization (ITTO) and other conventions. The PNGFA has also received assistance from 
international development partners  to develop programs and activities which focus on sustainable 
management of the forest resource. 
54. In 2009, PNGFA drafted the National Forest Development Guidelines which gives direction 
to the National Forest Plan, which underpins all forest based activity in Papua New Guinea. In 
addition, the PNGFA has drafted the Forestry and Climate Change Policy Framework for Action 
(2009-2015). Recognising its commitment to sustain development this Framework outlines the broad 
priorities for the Government by providing strate gic platform for policy and decision makers as well 
as developing and strengthening part nerships between national, provi ncial and community initiatives 
for implementation. The framework is consistent  with the UN MDGs and other international 
conventions on sustainable development.  
55. Papua New Guinea is also a signatory to th e Kyoto Protocol for carbon sequestration under 
the Clean Development Mechanism (CDM). Therefore, the need for reforestation is very crucial. The 
PNGFA is developing a Reforestation Policy to meet  the Government's commitment to the CDM and 
to ensure that there is sufficient timber in the future to meet do mestic demand and for export. Under 
the Reforestation Policy companies will be requi red to carry out reforestation programs or 
alternatively pay a reforestation levy to the Government. 
56. Current challenges in the sector include probl ems with coherence and coordination among 
other policies and the sector policies. For example, it has been alleged by the PNGFA that certain 
companies operating under the pretence of the Na tional Agriculture Development Plan (NADP) to 
carry out forest development activities in areas not  identified for development under the National 
Forest Development Plan.  
(3) FISHERIES  
57. The fisheries industries9 contribute approximately K100 million to the national GDP, which is 
1% of GDP and employs approximately 3,000 indi viduals (approximately 80% are women) in the 
formal fisheries sector. The total market value of  Papua New Guinea catch is estimated to be PGK 
450 – 500 million on averages. Although, the economic va lue of fisheries in the GDP is small, the 
importance of fisheries to the overall population a nd in particular to th e subsistence level is 
significant.  
58. A number of factors determine the value of the catch and the most obvious one being the 
commodity price movements, especially with th e Tuna. According to BPNG Reports, 'the total 
nominal value sale increased by 8.7% and this incr ease was mainly due to an increased export of tuna 
and favourable interna tional marine products'10. 
59. In terms of exports and market  access issues, much of the fisheries products (mainly frozen 
tuna) is exported to Japan and the European mark ets under the previously Cotonou arrangement with 
the ACP Countries, which has evolved to what is  now known as the Economic Partnership Agreement 
(EPA). Some of the challenges that  the sector faces with regard to its export include stringent trade-
related measures such as Rules of Origin, Sanitary and Phytosanitary (SPS), and Technical Barriers to 
Trade (TBT). For instance, the European Uni on has now adopted the Illegal Unreported and 
                                                      
9 All information included here on the Fisheries S ector is provided by the National Forest Authority 
(NFA). 
10 Bank of Papua New Guinea (BPNG), Quarterly Economic Bulletin, September 2009. WT/TPR/G/239 Trade Policy Review 
Page 14 
  
 Unregulated (IUU) Regulation, which has cross cutting effects from trade and development impacts to 
policy and governance implications that Japan also acknowledges.
11 
60. The Domestication Policy of 1995 is an inward  looking policy that aims to advance the 
interest of the fisheries sector by way of allowing integral and meaningful pa rticipation of Papua New 
Guineans to engage in the fisheries sector, which me ans that nationals must participate in every form 
of fishing activity ranging from harvesting to post harvesting, downstream processing to value adding 
production.  
61. Therefore, the ultimate aim of the policy is to have an on shore processing plant allowing 
greater transparency for foreign vessels operating w ithin and engaged in the fisheries sector. This 
policy also allows local industries to participate as well by establishing processing plants; for example: RD Tuna Canners, Frabe lle, and Faiewell PNG. However, on the slip side of the coin the 
consequence of this policy enables a lack of conf idence and interest in investment opportunities for 
foreign investors. 
62. In the direction of effective fisheries management of the fisheries resources, the Fisheries Act 
(2000) and Fisheries Regulation Act (2000) lay down the general framework for the terms and 
conditions for the management, development a nd regulation of fishing, including fisheries 
management and development, access agreements , fishing licenses and prohibited fishing related 
activities. Currently there is no National Fisherie s Policy in place to be guided under the Medium 
Term Development Strategy (MTDS). 
63. Fisheries Access Agreements are license fees ch arged to Distant Water Fishing Nations 
(DWFN) based on a bilateral stand. Countries that Papua New Guinea has FAA with are the Philippines, China, Taiwan, Korea, Japan as well as individual companies from the Philippines and 
Taiwan. 
64. In terms of regional access, the Parties to Na uru Agreement (PNA) have applied the Vessel 
Day Scheme (VDS) since 2008, which is the purse sei ne fishery management measure adopted by the 
Western and Central Fisheries Commission. The PNA also applies the Federated States of Micronesia 
(FSM) Regional Access Arrangement for purse seine fishery. The VDS is now applied in all FFA 
countries.  
65. The 8 PNA members are parties to the United States Multilateral Fisheries Treaty (USMFT). 
The VDS does not include fishing efforts of pur se seiners licensed under the USMFT, FSM Regional 
Access and locally-based foreign fishing vessels linke d to shore-based processing plants in the PNA 
countries. 
(4) M
INING  
66. The Department of Mineral Policy an d Geo-Hazards Management (DMPGHM)12 and the 
Mineral Resources Authority (MRA) evolved from th e former Department of Mining through a 
restructure in 2004. With the restructure taking effect, the DMPGHM was mandated with the responsibility of reviewing and drafting policies and le gislations relevant to the mining industry. In 
                                                     
 
11 Tsamenyi M, et al., The New EC Regulation on Illegal Fishing: Implications for ACP Countries, 
Trade Hot Topics Issue 56, February 2009. 
12 All information included here on the Mining Sector is provided by the Department of Mineral Policy 
and Geo-Hazards Management (DMPGHM). Papua New Guinea WT/TPR/G/239 
 Page 15 
 
 
 other words the work of the Department focuses mainly on policies and legislations as well as geo 
hazard management. 
67. On the other hand, the MRA acts as the policy implementer and oversees the operational 
functions of the policies and legislations that th e Department draws up. The MRA therefore acts as a 
regulatory arm of the mining industry overseeing the implementation of the Mining Act 1992, the 
Mining (Safety) Act 1977 and other mineral policies including the issuing of licenses.     
68. The main policy objective of the Government in the mining sector is to create a stable and 
conducive environment for investment in the industr y aided with a regulatory framework that supports 
this objective. The mining industry is currently unde rgoing a review of its mining legislations and 
mineral policies13 in light of recent developments14 in the mining industry, as well as taking into 
consideration land issues mainly  affecting resource owners.  
69. The mining sector continues to be the largest foreign exchange earner which contributes 64% 
of total export earnings and this in turn aids an export of minerals a nd petroleum also contribute to the 
settling of government debts and increasing levels of reserves. Investment in the sector is predominantly by foreign investors.  
70. Despite the current global economic crisis, th e Government of Papua New Guinea has been 
proactive in attracting foreign investment in the sector, which is reflected by new explorations and 
new projects.  
71. Apart from small scale mining, new explorations  in mining have been undertaken but have 
not entered into production stages or have either been stalled due to global mineral prices that 
determine the viability of domestic mining operations  in Papua New Guinea, as well as the global 
financial crisis spill over effects in Europe. The gl obal financial effects taking its toll in Greece has 
allowed demand in Asia, especially China. 
(5) P
ETROLEUM (OIL AND GAS)15 
72. The Government's main goal is to develop the country's hydrocarbon resources in accordance 
with the Constitutional pillars, the Fourth National Goal and Directive Principle on natural resources 
and environment, and the export-driven strategy  under the MTDS, whilst incorporating the best 
industrial practices and standards so as to maximi ze socio economic benefits  and minimize adverse 
social and environmental impacts to its citizens. 
73. The most important regulatory instruments in the Petroleum Sector are the Oil and Gas Act 
1998 and the Oil and Gas Regulation, while the main policy document is the Petroleum Policy 
Handbook. Other supporting policy documents include  Natural Gas Policy, Gas Commercialization 
Policy, Pipeline Policy, Oil Refinery Policy Guidelines, and Landowner Management Policy. 
74. Additional policy initiatives being embarked on include the Marginal Field Policy, Offshore 
Operations Policy, Project Abandonment Policy,  Downstream Policy, Carbon Tax Policy and 
National Energy Policy. 
                                                      
13 The following mining legislations and mineral policies are currently undergoing review and are as 
follows: Mining Act 1992, Mineral Policy, Mining (Safet y) Act 1977 and, the Draft Offshore Mineral Policy. 
14 For example, the Offshore Mining is a 'new' mini ng concept in PNG and currently there is deep sea 
mining explorations taking place by developer Na utilus off the coast of New Ireland Province. 
15 All information on the Petroleum Sector is provided by the Department of Petroleum and Energy. WT/TPR/G/239 Trade Policy Review 
Page 16 
  
 75. To provide an enabling investment environment for development in the hydrocarbon sector, 
the Government undertook a major fiscal reform in 2003, which saw the reduction of corporate tax 
rate from 50% to 30%
16 for all petroleum projects developed before 2001, and from 45% to 30% for 
all petroleum projects developed after 2001, incl uding the abolishment of Additional Profit Tax 
(APT). 
76. These reforms were necessary amidst the rapi d decline in oil and gas exploration and 
production experienced between 1991 a nd 2003. The reforms have greatly revamped activities in the 
Petroleum Sector, expansion of offshore and onshore acreages and commercialization of Papua New 
Guinea's vast gas resources. 
77. Papua New Guina's real growth in oil and gas exploration and production came in 1990, with 
commencement of commercial crude export of 1,245 million barrels of crude17 from the Kutubu oil 
field in 1990.  In 1993, Papua New Guinea reco rded its peak crude production totalling 45 million 
barrels. 
78. Papua New Guinea exports crude oil from Kutubu,  Gobe, Moran and South East Mananda to 
overseas markets and has exported an aggregate of 4 50,000 million barrels of crude oil since 1990.  
Export for 2009 alone was 16.4 million barrels of  crude oil, while export earnings were PGK 
2.6 billion. 
79. Although other producing fields in Gobe, Mo ran and South East Manada have come on 
stream, Papua New Guinea continues to experience a gradual decline in total oil production and oil 
revenues, thus switching the country's focus now  from oil production to the commercialization of 
natural gas reserves. 
80. Since 1990, the overall real GDP from the sector averaged at 4.6%18 in real terms. This is 
projected to increase by 3% at the end of 2010 an d further consolidated in 2014, when first LNG 
exports from the US$15 billion19 PNG LNG Project commences.  Th e positive outlook in overall 
growth from this sector is also being strengthened by the current overall gas commercialization drives 
underway, with Papua New Guinea eyeing its second L NG Project in Gulf Province plus gas-based 
developments, such as petrochemicals and gas to electricity. 
Equity Participation  
81. Oil and Gas Projects in Papua New Guinea ar e developed through e quity partnerships. 
Usually, the Government, under Section 164 of th e Oil and Gas Act 1998, can take up to 22.5% 
participation interests in a development project, which is funded by the State and managed by its 
nominee company. From the State's 22.5% interests, a negotiable interest of not less than 2% is given 
to resource area landowners.  The remaining inter est are taken up by the project proponent and its 
joint venture partners, which may compri se both foreign and national companies. 
                                                      
16 Department of Petroleum and Energy, Upstream Petroleum Fiscal Regime: Economic Services 
Branch. 
17 Department of Petroleum and Energy, Annual Report, 2009. 
18 ACIL Tasman Report, Government of PNG, 2005. 
19Exxon Mobil Media Release, 13 March 2010. Papua New Guinea WT/TPR/G/239 
 Page 17 
 
 
 The PNG LNG Project  
82. The PNG LNG Project succeeded the initial propo sal by Papua New Guinea Government to 
pipe Natural Gas to Queensland, which was abandon ed in 2005. The project is now being undertaken 
by Exxon Mobil at a total cost of US$15 billion and has a fiscal term of 30 years. 
83. The project is a two train project with a capacity of 6.9 million tonnes per annum and will 
utilize natural gas from gas fields in Hides,  Juha,  A ngore,  Kutubu  and  Gobe  over  its  30 years  
lifespan  to produce LNG for exports to cu stomers in  China,  Japan and Taiwan. 
84. The overall estimated revenue that will be generated over the entire life of the project in taxes, 
royalties, development levies and e quity dividends, is PGK 20 billion20 or approximately 
US$6-7 billion. 
(6) MANUFACTURING  
85. Whilst the contributions of the manufacturing sector21 to the national GDP maybe lower than 
the other economic sectors of the country, it plays a vital role in the lives of the majority of the 
country's population.  Compared to other sectors, manufacturing has over the last five years begun to 
grow in key business activities as a result of th e evolving demands both in the domestic and 
international markets. Further, recent major capital investment of a number of manufacturers has helped boost the local construction industry. 
86. Domestic manufacturing contributes between 6% and 11.5% of total GDP and employs more 
than one quarter of the nation's formal work force.
22  It also contributes up to 13% of exports (does not 
include processed mineral exports) and would be much larger if it were not for the mining sectors 
continued strong growth. 
87. Given that Papua New Guinea has the largest domest ic market in the Pacific region, this gives 
the manufacturing sector certain economies of scale that provide opportunities for Papua New Guinea 
manufacturers to export PNG-MADE products to th e smaller and key markets in the region.   
88. In a recent survey of only 24 Papua New Guinea manufacturers in palm oil, fish processing 
(for export), food and beverage sectors, the responde nts employed over 33, 0 00 people and had a total 
derived turnover of around PGK 6.1 billion. 
89. Despite the commitment of existing manufact uring industries in Papua New Guinea, the 
manufacturing sector is in a fragile state. There is urgent need to address trade infrastructure 
problems, roads, ports, power, water, transportati on and communications.  With a population growing 
beyond 6.6 million and the LNG project set to take  the Papua New Guinea economy from 6 billion to 
16 billion per annum, such deficiencies must be addressed immediately. 
90. Government policy is to expand manufacturing by encouraging processing of primary 
products into priority production areas such as petr ochemicals, canned tuna, fu rniture and bio-fuels. 
Currently, the manufacturing sector relies on agricultural  and resource based industries, particularly in 
                                                      
20. Exxon Mobil Media Release, 13 March 2010. 
21 All information included here on the Manufacturin g Sector is provided by the Manufacturers Council 
of PNG and Department of Foreign Affairs and Trade. 
22 According to various sources such as Department of Treasury, World Bank, Department of 
Commerce and Industry, Bank of Papua New Guinea, and reputable Private Sector institutions. WT/TPR/G/239 Trade Policy Review 
Page 18 
  
 the export of manufactured commodities such as pa lm oil, processed timber, processed tuna and 
recently the export of refined petroleum.  
91. The challenge for the manufacturing sector is to  identify opportunities, which can move the 
economy from comprising predominantly primary industries into realizing the potential of higher value-added processing industries.  It is the Go vernment's vision to gradually advance into 
downstream processing of major primary commoditi es through the development of higher value 
production chains and appropriate technologies. To rea lize this vision the Government aims to create 
a conducive environment growth and broaden the tax base. 
92. Therefore, the Government must continue to put into place policies, which will lead to the 
development of a strong domestic production base to  replace reliance on the non-renewable resource 
industries such as mining and petroleum. Within the framework of the PNG Vision 2050, the 
Government seeks to encourage value adding of th e country's natural resources by manufacturing 
them into finished products. However, without  tangible improvements to infrastructure or the 
establishment of an operating platform that is conduciv e to business, the sector will remain in a fragile 
state with little to no foreseeable i nvestment into the desired areas. 
(7) S
ERVICES  
93. In general terms, Papua New Guinea has a fa irly open and liberal service sector.  Many 
services sectors are open, to the extent that there are no restrictions in place across. In recent years, 
Papua New Guinea has made notable efforts in promo ting liberalization and facilitation in the services 
sector, especially in sectors such as financial, telecommunication, legal, tourism, and energy services sectors. 
Information and Communication Sector 
94. The information and communication sector
23 had been practicing more inward looking 
policies until 2005 when two major decisions and in itiatives were undertaken by the State.  These 
major policy decisions and initiatives were the intr oduction of mobile services and the competition act 
in March of 2007 and the formulation of the Na tional Information and Communication Technology 
(ICT) Policy. 
95. Following on from the finalization of the ICT Policy in 2008, a major legislative initiative 
was undertaken by the State in 2009 with the passag e of the National Information Communications 
Technology Authority (NICTA) Act, which assumed the responsibility of the Telecommunications 
Act 1996 and the Radio Spectrum Act 1996. This move essentially disbanded all functions and responsibilities of Papua New Guinea Telecommuni cations Authority (PANGTEL) and transferred 
the same to NICTA; thus the policy objective of having NICTA was to regulate the ICT sector. 
96. The fundamental aim of having both policy refo rms was to liberalize the telecommunication 
sector for competition as well as the transformation of  Telekom into a viable and efficient competitor 
upon the introduction of open competition. 
97. Apart from the major reforms and reviews, whic h have being undertaken by the State, there 
are three major developments that are also worth mentioning and these are:  
                                                     
 
23 All information included here on the Information and Communication Sector is provided by the 
Department of Communication and Information. Papua New Guinea WT/TPR/G/239 
 Page 19 
 
 
 (i) E-Government initiative is a concept, wh ich was approved and directions given by 
the State for its development. The e-Governme nt has five (5) pillars, with government 
networking as the major component of the 5 pillars of the concept.  The e-Government will basically aim to connect the three (3) tier system of governance in 
Papua New Guinea – that is from the Nati onal Government, Provi ncial Governments 
to the Local Level Governments (LLG) across the country. Negotiations are currently 
underway with funding and project design secured through assistance from the 
Chinese Government in the form of a concessional loan of US$53 million and 
technical expertise secured through a Memorandum of Understanding (MOU) 
between the Government of Papua New Gu inea and the Government of Malaysia. 
(ii) Universal Assistance Scheme (UAS) is another major development, which the State 
has undertaken to provide vital communicati on services to reach inaccessible areas of 
the country. Initial funding from the World Bank has been sought and a fund created to facilitate the pilot project with already two (2) provinces identified to undertake the 
project.
24 
(iii) Rural Connectivity Fund (RCF) – in th is project, the Government aims to make 
available its services through the RCF arra ngement to areas that are assessed and 
deemed to be inaccessible and unprofitable by current service providers. The World 
Bank through the Papua New Guinea Country  Assistance Strategy mechanism has 
also offered its support for the funding and implementation of the project. For the implementation and administering of the project, NICTA will take carriage. 
98. Since the liberalization of specific areas of  communication, such as mobile services and 
service providers in Papua New Guinea, the network coverage areas have increased and extended to 
inaccessible and remote areas. In addition, rates have  been affordable for people giving those choices, 
thus making communication convenient and more affordable. 
Tourism Sector 
99. Papua New Guinea has great potential for intern ational tourism with its many attractions 
including natural beauty, rich cultural experiences, world-class diving, unique bird watching, deep sea 
fishing, surfing and trekking. The tourism industry has the potential to create important benefits to the country, including increasing employment, boosting spin-off businesses and preserving the environment and culture. Other benefits include improvement to rural communities who rely on 
tourism for their participation in the cash economy. 
100. Although the tourism industry has been growing relatively rapidly in recent years, it remains 
small on the international scale and contributes onl y around 3% to GDP. However, the number of 
visitor arrivals to Papua New Guinea has increased  in the last 6 years from 56,185 in 2003 to 120,134 
in 2008. The estimated spending by these visitors  in 2008 was PGK 960 million. This increasing trend 
in the number of total visitors is expected to c ontinue with 8.5% growth  predicted over the next 
ten years. The inbound market is dominated by business travel (65.2%) with holiday arrivals 
comprising 28.9% of total visitor arrivals.  
                                                     
 
24 The establishment of the Univer sal Assistance Scheme (UAS) Fund is to help meet Government 
objectives such as internet access and voice access outside specific roll-ou t areas and will be  funded through 
industry levies, donor funding and budget allocation. National ICT Policy Phase 2 Reforms Final Report, 
March 2009, Department of Communication & Information. WT/TPR/G/239 Trade Policy Review 
Page 20 
  
 101. Recognising the potential for the tourism industry in Papua New Guinea, the Government, 
through the Tourism Promotion Authority, has de veloped the Tourism Master Plan (TMP) 2007-2017 
with the goal of 'increasing the overall economic value of tourism to the nation by doubling the 
number of tourists on holiday in Papua New Guin ea every five years and maximizing sustainable 
tourism growth for the social and environm ental benefits for all Papua New Guineans'.
25  
(8) TRANSPORT  
102. The rehabilitation and maintenance of the transpor t infrastructure is an important priority for 
the Government due to the crucial role that tr ansport infrastructure plays in facilitating improved 
access to goods and services. In recent years, the Government has invested substantial budgetary 
support towards building and improving public infrastructure throughout the country, including the regular maintenance and upkeep of transport infrastructure. 
103. The Government will continue to fund the de velopment of the transport sector through the 
National Transport Development Plan (2006-2010), wh ich continues to guide the prioritisation of 
resources in the transport sector.  It identifies 16 pr iority national roads, which are of the greatest 
economic and social importance to the country. Howeve r, not only have funds been spread too thinly 
within the priority areas, but they have al so been spent across non-priority areas.   
104. The Department of Transport is currently fo rmulating a new National Transport Strategy 
(2010-2030), which will be implem ented through five-year Medium Term Transport Plans (MTTPs). 
These plans will target maintenance and rehabilitation of  priority transport infr astructure, assess future 
transport sector needs and build the capacity to im plement Government's policies in the transport 
sector.
26 
(9) INTELLECTUAL PROPERTY RIGHTS  
105. The Intellectual Property Office of Papua New Guinea (IPOPNG)27 protects and promotes 
intellectual property laws in Papua New Guinea. The Office was formerly known as the Trade Marks 
Office of Papua New Guinea due to its role in administering the Trade Marks Act  since 1980. 
However, in 1999 Cabinet through NEC Decision 104:1999 approved a name change from Trade 
Marks Office to what is now known as the Intellectual Property Office of Papua New Guinea 
(IPOPNG). 
106. The need and importance of having an established intellectual property regime was aroused 
due to the following two (2) main reasons: Firstly , to achieve its overarching aim of promoting, 
protecting, and encouraging creative intellectual activity in Papua New Guinea and secondly, Papua 
New Guinea began trading and engaging in the multila teral trading system with trading partners and 
relevant international organizations.  
107. In light of these developments, IPOPNG had to have its own national structure and legislation 
in place to facilitate those requirements promoted by  these international organizations and as a result 
introduced and enacted various appropriate Inte llectual Property Rights (IPR) legislations, 
                                                      
25 Department of Treasury, 2010 National Budget , Economic and Development Policies Volume 1, 
pg. 116. 
26 Department of Treasury, 2010 National Budget , Economic and Development Policies Volume 1, 
pg. 104. 
27 All information included here on Intellectual Property Rights is provided by the Intellectual Property 
Office of Papua New Guinea (IPOPNG). Papua New Guinea WT/TPR/G/239 
 Page 21 
 
 
 administrative and enforcement mechanisms for th e basic purpose of IPR protection. The following 
intellectual property legislations have since bei ng endorsed and passed by the National Parliament, 
and are as follows: the Patents and Industrial Designs Act 2000 , Copyrights and Neighbouring Acts 
2000 , and the Trade Marks Act, which has been in force for the p ast twenty five (25) years.  
108. IPOPNG has further undertook policy initiatives by undertaking reviews and amendments 
with the aim of further strengthening and improving the existing IPR legal framework to ensure that 
these legislations are fully compliant with the TR IPS obligations. The main improvements include:  
(i) A complete repeal of the Trade Marks Act  that includes provisions on Geographical 
Indicators (GI), well known marks and coll ective or multi-classed applications and 
requirements for the Madrid protocol; 
(ii) Substantial amendments to the Patents & Industrial Designs Act  to include provisions 
on Patent Cooperation Treaty (PCT) and compulsory licensing; and 
(iii) Significant changes to the Copyright & Neighbouring Rights Act to allow for 
establishment of Collective Management Organizations. 
109. IPOPNG has also being working closely with the World Intellectual Property Organization 
(WIPO) and has taken effective measures in upgradi ng some of its facilities in terms of technical 
assistance. For example, in 2006 the Intellectual Property Automated System (IPAS)28 was installed 
with the aim of ensuring expeditious granting of  IP rights which was further improved in 2007. 
Bilaterally, IPOPNG has signed a Cooperation Agre ement with IP Australia in March 2002 for 
assistance in patent administration and the same in itiative further extended to other countries such as 
the United States. 
110. Regardless of the government's policy response to the protection of patents, copyrights, 
trademarks, and trade secrets, as well as other lega l areas, such as unfair competition; there still 
remain challenges in the form of implementation a nd enforcement. For instance, IPOPNG still faces a 
daunting challenge in establishing its IP Enfor cement System where infringement issues can be 
adequately addressed.  
111. IPOPNG realizing this problem has established a Committee networking with other key 
stakeholders such as Department of Justice a nd Attorney General (DJAG), Papua New Guinea 
Customs Service, etc. ... to rectify the problem a nd find workable solutions to address these issues. 
Some of these common problems are widespread in crease in the reproduction and sale of counterfeit 
and pirated goods throughout the economy. 
112. As a starting point with the legislations in place, enforcement measures have also being 
incorporated in it (legislations) with regard to border measures which are in line with the Papua New 
Guinea Customs Act Charter 101. Papua New Guinea Customs on their part through this regulatory 
measure (Customs  Regulation Ch 101 on Prohibited Imports) have implemented and are assisted IP 
owners in effectively enforcing their rights at th e borders. This is done by a cooperative effort in 
which Customs with assistance from IPOPNG trad emarks section allow a recordation process 
whereby illegal import of counterfeit and pi rated goods are stopped at the borders.  
                                                      
28 This system allows for processing and registration of industrial property (trademarks, patents, 
industrial designs and copyrights). WT/TPR/G/239 Trade Policy Review 
Page 22 
  
 113. Finally, IPONG in its bid to provide a prope r road map and direction in developing and 
addressing IP issues in the economy has embarked  on developing a National Intellectual Property 
Strategy. The project is currently underway and th e organization is collaborating with the WIPO and 
local stakeholders to develop the strategy. The dr aft strategy is currently awaiting approval by the 
Government.  
V. CONCLUSION 
114. Over the last ten (10) years, Papua New Guin ea has embarked on major structural reforms 
and policy development and adjustments in the different sectors of the economy to enhance economic growth. This process will only be enhanced thr ough the implementation of the PNG Vision 2050 to 
achieve the strategic objective for Papua New Guin ea, which is to reduce the Papua New Guinea's 
excessive reliance on mineral resources and aim to provide the right incentives to support the 
diversification of the economy. 
115. The Government recognises too that trade plays a critical role in creating new opportunities 
for Papua New Guinea producers, service providers and workers by opening new markets, thereby 
providing tangible incentives to the diversification of Papua New Guinea's economy, and in doing so alleviating people out poverty. Give n that exports constitute roughly 90% of GDP, trade liberalisation 
through both regional and international efforts is an  integral  part of achieving strong and sustained 
economic growth, and poverty reduction.  
116. Although with great expectations on the LNG Project, including the mining and petroleum 
resources sectors; relying exclusively on these resources to achieve economic growth is not 
sustainable in the longer term. The investments into these sectors are certainly important for the 
economy; however it is equally important to ensure  that the other productive and sustainable sectors 
are not overlooked.  
117. In that context, greater technical assistance is re quired to assist with the trade related needs of 
Papua New Guinea.  A list of specific Trade Rela ted Technical Assistance needs is attached as 
Annex 1. Papua New Guinea WT/TPR/G/239 
 Page 23 
 
 
 ANNEX 1: TRADE RELATED TECHNICAL ASSISTANCE 
1. Technical Assistance for the trade-related need s of Papua New Guinea is necessary to enable 
better engagement in the multilateral trading syst em and regional trade initiatives. The difficulties 
faced in building productive capacity are numerous in Papua New Guinea, ranging from small size of SMEs, supply constraints that hamper export capacity  and movement up the value chain, insufficiency 
of skilled personnel and the limited availability of fi nance. Therefore, technical assistance is required 
for these areas: 
(i) Continue to build capacity for national a nd regional institutions dealing with trade; 
(ii) Enhance the productive capacity of enterprises through  technical support for value 
chain analysis to eliminate inefficien cies and provide capacity building assistance 
programmes at the sector and product leve l to tackle standardization issues, 
packaging and SME finance; and 
(iii) Provide technical assistance to take advantage of new markets through environmental 
certification, such as Forestry Stewardship Council and the creation of Biosphere Reserves. 
2. Furthermore, the following are specific project s areas, which have been identified by the 
relevant line Departments and Agencies of the Government for donor funding: 
(i) Introduction of a National Single Window for Trade Facilitation; 
(ii) Trade Development Programme; (iii) Small and Medium Enterprise Policy Review Project (SMEPRP); (iv) Support to Papua New Guinea Long-line Fishing Fleet;  (v) Support to the implementation of the National Tourism Master Plan;  
(vi) Establishment of Food Testing Laboratory; 
(vii) Provision of equipment for the Me trology Laboratory within the National 
 Institute of Standards and I ndustrial Technology (NISIT); and 
(viii) Enhancement of Intellectual Property Protection Regimes. 
 
__________