There is significant potential for Papua New Guinea (PNG) and New Zealand (NZ) to deepen their trade and investment relationship, Minister for International Trade and Investment Richard Maru said, addressing a delegation from the New Zealand-PNG Business Council.
“In terms of trade, PNG’s exports to NZ are valued at US$15 million, while NZ’s exports of goods to PNG stand at US$150 million. We have no issue with this trade imbalance favoring NZ on a ratio of 1:10. However, we need NZ’s support through aid for trade to train our people to meet their strict biosecurity requirements, so we can export more into the NZ market,” Maru said.
The New Zealand-PNG Business Council is currently in PNG to explore potential partnerships, secure new business opportunities, and strengthen economic ties between the two nations.
He expressed concern over the lack of New Zealand investment in PNG over the past 50 years.
“Despite our government’s efforts to attract NZ investments, traction has been minimal. There are numerous opportunities for NZ investors, including in the chicken and dairy industries, which would support our agenda for downstream processing, boosting exports, and replacing imports," Maru said.
"New Zealand has been a long-standing friend, and we are committed to supporting their investments in PNG. Meanwhile, Australia remains our largest investor with over AU$27 billion and is very proactive. It is up to NZ whether they want to remain a marginal player in our economy or become a major one," the minister said.
Minister Maru highlighted that the present moment is ideal for investment in PNG, citing the upcoming Papua LNG project, the Wafi-Golpu mine, and approximately ten new mining and petroleum projects in the pipeline.
“We are poised to become one of the most dynamic economies in the region, with 5 percent economic growth expected next year, which could be sustained over the next 20 to 30 years. Despite our challenges, PNG is a prime investment destination, as demonstrated by world-leading companies such as Newmont, Santos, and ExxonMobil investing here,” he added.
On trade agreements, Minister Maru emphasized that PNG has opted not to join regional deals like PACER Plus. Instead, the country seeks a Comprehensive Economic Partnership Agreement (CEPA) with New Zealand.
“The offer is on the table. This is the path our countries must take if we are serious about our future relationship. We already have a CEPA with the European Union, and in the coming months, we aim to sign our second CEPA with the United Arab Emirates, which NZ recently concluded a CEPA with. We have also proposed CEPAs with Japan and South Korea, and I plan to discuss one with India during my visit next week. Our goal is to partner with countries that will support economic growth and prosperity, as outlined in our new Foreign Policy,” he said.
Minister Maru also highlighted gaps in connectivity and sporting exchanges between PNG and NZ.
“How can business-to-business relationships grow when there are no weekly flights between our countries? This is an issue both governments must address,” he noted.
He concluded with a call for stronger engagement. “Our trade and investment relationship has not grown substantially over the past 50 years. I strongly urge the NZ Government to enter into CEPA negotiations with PNG next year if they are serious about deepening economic ties. It is time to take stock of our relationship, and I look forward to seeing NZ adopt a more aggressive approach to investing in PNG and finalizing a CEPA as soon as possible.”
