The most significant barriers to U.S. exports are the small size of the market, the distance to the market, infrequent shipping schedules, and Australia's market dominance. Because of ingrained habits, colonial ties, and the monopolistic nature of several industrial sectors, many importers continue to buy from traditional suppliers, even when other suppliers offer more competitive pricing. Since the purchasing power of the kina has diminished, importers are becoming more receptive to new sources of supply. To compete with traditional commercial ties, U.S. exporters need to visit PNG often. They must also be committed to follow up on their visits by phone, letter, and fax.
Competitive financing is a key factor in large projects.
For consumer goods, the ability to consolidate cargo and ship mixed containers will be an important plus. Exporters of consumer goods may wish to consider advertising in Melanesian Pidgin, the lingua franca of most Papua New Guineans. Several times a year, the Embassy mails a commercial newsletter to key PNG importers to publicize information it receives on U.S. exporters seeking buyers and distributors for their products. Pricing Product Price controls are in effect for a number of consumer goods, mainly food products. At present, the most important limitation on the ability of foreign suppliers to sell to the Government is the latter's persistent cash-flow problems.