Minister Maru Commits to Delivering PNG-China Free Trade Agreement Feasibility Study Report

The Minister for International Trade and Investment, Richard Maru, announced today that the PNG-China Free Trade Agreement (FTA) feasibility study report will be delivered by the end of this month. The statement followed a meeting between Minister Maru and the newly appointed Chinese Ambassador to Papua New Guinea (PNG) Yang Xiaoguang. 

Minister Maru emphasized the importance of the report, saying: 

 “This study will determine the viability of an FTA between our two countries. It has been jointly funded by both the Chinese and PNG governments, with each contributing K1 million. Final preparations are underway, and the report will be delivered to both governments in November. Once I receive the report, it will be submitted to the Cabinet for deliberation. If deemed feasible and in our national interest, we will recommend that formal FTA negotiations commence in the new year.” 

Maru highlighted China’s growing significance as PNG’s key trading partner, stating: 

 “Over the past five years, trade between PNG and China has consistently favored PNG, with a trade surplus recorded from 2017 to 2021. In 2020, PNG exported K6.7 billion worth of goods to China while importing K2.6 billion, resulting in a trade surplus of K4.1 billion. China is now PNG’s third-largest export destination and second-largest source of imports. This reflects the economic importance of our trade relationship, and we recognize that our future in exports lies with China.” 

Minister Maru also noted that the 2018 signing of the Belt and Road Initiative (BRI) has further strengthened bilateral ties. 

 “Since joining the BRI, PNG has become China’s largest trading partner and investment destination in the region. Chinese investments in infrastructure projects such as roads, bridges, and hydropower stations have contributed significantly to our economic development and the well-being of our people. We encourage further Chinese investment across various sectors, including Special Economic Zones, mining, petroleum, energy, and fisheries.” 

 “We are committed to deepening our relationship with China and anchoring it through an FTA if the joint feasibility study confirms that it aligns with our national interests.”

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