Concluding remarks by the Chairperson

This third Trade Policy Review of Papua New Guinea has offered us a good opportunity to deepen our understanding of recent developments in, and challenges 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, Permanent Representative of Latvia to the WTO. I would also like to thank the 21 delegations that took the floor for their interventions.

Members commended Papua New Guinea for its positive economic performance during 2010-18 which was attributed, among other, 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.

Papua New Guinea was praised for adopting its 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. They indicated that further regulatory reforms and opening of the PNG economy would stimulate commercial activity and growth. At the same time, PNG was 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 and for promoting the participation of women.

Against the background of the growing role of trade in its economy, PNG's strong commitment to the WTO was greatly appreciated. Members welcomed PNG's notification of its Category A commitments under the Agreement 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 under 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 Government Procurement Agreement and the Information Technology Agreement and participating in the Joint Statement Initiative on Electronic Commerce.

Members noted with satisfaction that PNG's simple average applied tariff was 3.9% in 2019, down from 5.1% in 2010. However, 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 flagged 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 regional 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.

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 SPS 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 develop 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.

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 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, much of which is still operated by state-owned, including monopoly, enterprises.

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 outstanding 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 policies to further enhance competitiveness and achieve sustainable growth.