The European Union Ambassador to Papua New Guinea Jacques Fradin reaffirmed the EU’s long-term commitment to PNG, emphasising innovation, climate action and deepening trade and development partnerships under a transformative “global gateway” approach.
The European Union (EU) has been a long-standing partner of PNG since independence, strengthening ties through trade, development aid, green diplomacy and shared interests. In recent years, this relationship has evolved to a more political and strategic level, marked by high-level political dialogues.
Fradin stressed the EU stands as a “reliable and concrete partner” in PNG’s next chapter of growth as the nation prepares to mark its 50th year of independence on 16 September.
“When it comes to our involvement in the country, we are here for the long haul and will continue delivering concrete programmes and projects,” Fradin said in an exclusive interview with PNG Business News.
“The PNG government has laid out a clear vision for how it will develop in the next 50 years and within this vision, the EU stands ready to support the country’s goals,” he added.
Moving beyond symbolic commitments, the ambassador emphasised a practical and sustained approach to engagement with PNG. “We will not change in terms of what we concretely deliver through projects and programmes, but we will adapt to the way we do business.
“Global gateway is simply about connecting with PNG’s reality and delivering support based on what the country actually needs,” the Ambassador said.
Shaping a New Model of Cooperation
Global gateway is the EU strategy to boost smart, clean and secure connections in the digital, energy and transport sectors, and to strengthen health, education and research systems across the world. It brings together the EU, its member states and their financial and development institutions to mobilise the private sector to leverage investments promoting sustainable growth.
To this end, the EU is providing significant grant contributions to complement bank loans that will be extended to the PNG government.
Two new projects under the global gateway banner are currently in development, expected to be signed in 2025 if agreements can be reached on the loan component. These are:
- Rabaul Port Rehabilitation Project – to optimise operations, improve flexibility and minimise environmental impacts.
- PNG Water Plan Project – to expand water supply services in four provincial towns: Namatanai (New Ireland Province), Kupiano (Central Province), Misima (Milne Bay Province), and Kurumul (Jiwaka Province).
These projects reflect the EU’s broader ambition to scale up investment in infrastructure, energy, agriculture and climate initiatives by blending EU grants with loans from the European Investment Bank, Agence Française de Développement (AFD), and potentially the Asian Development Bank. This approach is projected to unlock tens of millions of euros in investments.
“That is how we are going to transform the EU business and development model in PNG over the next 10 years,” Fradin said.
A Trade Partnership Anchored in Access and Growth
A cornerstone of EU-PNG trade is the Interim Economic Partnership Agreement (iEPA), ratified in 2011. The iEPA grants duty-free and quota-free access to the EU market—a single market of 447 million people with a GDP of over USD 20 trillion (PGK 81 trillion)—for all PNG exports.
In 2024, this trade relationship continued to deepen. The total trade between the EU and PNG reached EUR 1.074 billion, marking a 9% increase from 2023. In fact, the trade balance continues to favour PNG. The EU imports from PNG in 2024 comprised:
- 51% agricultural products, notably vegetable fats (palm oil), coffee and tea
- 24% fishery products, especially canned tuna and smoked loins, amounting to EUR 230 million
- 25% industrial products, primarily ores, slag and ash including copper and precious metals
On the other hand, PNG imports mainly machinery and appliances (48%), food, beverages and tobacco (13%), and transport equipment (10%) from the EU. Currently, the EU ranks as PNG’s fourth-largest export destination, with about 60% of PNG’s coffee exports going to Europe.
Expanding Climate Cooperation and Green Energy Prospects
The partnership extends beyond trade. The Ambassador highlighted several areas of cooperation under the Forest, Climate Change and Biodiversity (FCCB) programme.
“We are focusing on climate change and biodiversity in collaboration with the PNG Government and agencies. It’s one of our flagship projects. This will continue for the next three years,” he said.
The EU is also exploring future opportunities, particularly in the green energy space. A renewable energy programme is under development, though it remains in the early stages and has yet to be formally announced.
According to Ambassador Fradin, PNG’s geographic and demographic significance—as the Pacific’s largest country in both land mass and population—gives it strategic importance as a “gateway to Asia and the Pacific.”
Boosting Regional Integration Through Trade Agreements
The EU-Pacific interim Economic Partnership Agreement (iEPA), implemented by PNG and three other Pacific countries (Fiji, Samoa and Solomon Islands), serves as a key framework for regional trade cooperation. Its global sourcing provision allows processed fish to be exported duty-free to the EU, regardless of origin, significantly benefitting PNG’s tuna canning industry.
The iEPA also encourages dialogue on trade barriers, health and safety standards and customs cooperation. The 10th EU-Pacific Trade Committee meeting was held in Brussels in February 2025, with senior officials from PNG and prospective members such as Niue, Tonga and Tuvalu in attendance.
To support this regional vision, the EU has committed EUR 37 million (PGK 165 million) to initiatives including:
- SPIRIT – Strengthening trade institutions and private sector capacity
- IMPACT – Customs modernisation and border management
- SAFE Pacific – Market certification and compliance support
Bilateral support also includes efforts to enhance PNG’s National Trade Office and trade-related infrastructure.
At the community level, the EU-STREIT Programme or the Support to Rural Entrepreneurship, Investment, and Trade is making an impact in East and West Sepik by strengthening cacao, vanilla and fisheries value chains, and investing in sustainable transport and energy infrastructure.
Tackling Sustainability and Compliance
The EU’s Deforestation-Free Products Regulation, in effect since 29 June 2023, will be fully enforced by 30 December 2025 (for medium/large companies) and 30 June 2026 (for small businesses). Covering palm oil, cocoa and coffee—key PNG exports—it requires traceability and quality, enabling products to fetch better prices in EU markets.
The EU is actively supporting PNG producers through the EU-STREIT and FCCB programmes to help them meet compliance requirements.
Growing Investment and Economic Presence in PNG
European interest in PNG is growing, with investment stock rising from EUR 179 million in 2013 to EUR 1.856 billion in 2023. EU firms are active in sectors including LNG, aviation, telecoms and manufacturing.
Leading investors such as the Netherlands, France and Italy continue to play a key role. The upcoming EU-Pacific Business Forum in Fiji this September is expected to see active participation from PNG.
However, the Ambassador noted concerns about PNG’s possible grey-listing by the Financial Action Task Force (FATF) due to anti-money laundering deficiencies.
While this poses a risk to investor confidence, the EU welcomed Prime Minister Marape’s public commitment to address the issue and reaffirmed its offer of technical support.
Building a Green PNG Brand in Europe
The Ambassador believes that PNG is well-positioned to develop a green trade identity in Europe by focusing on sustainable, high-quality exports such as coffee, cocoa, vanilla and tuna.
“About 60% of PNG’s coffee already goes to Europe and while we’re not your biggest cocoa buyer, we do import and we can do more,” he said.
Stricter EU import standards—such as the Deforestation Regulation—present both a challenge and an opportunity, banning products grown on recently deforested land. The EU is working with PNG’s Chamber of Commerce and relevant trade offices to ensure compliance.
“We are not imposing a standard. If PNG wants to export to the EU, then we simply ask for the value chain to be reliable and the importer will be held responsible for the product they do export. The price we offer is higher, which is a win-win situation.”
Responsible Mining and Critical Raw Materials
The EU is also interested in PNG’s critical raw materials (CRMs), with over EUR 959 million in goods imported from PNG in 2024—95% of which were primary products.
Ambassador Fradin confirmed the EU imported nearly EUR 600 million in raw materials last year and stressed the importance of applying Environment, Social and Governance (ESG) standards in the sector.
“Exploit but not destroy. Process but not damage. Trade, but not bad trading,” he said.
The EU is closely following legislative developments in PNG, encouraging policies that promote responsible mining and local value addition.
Investing in PNG’s Greatest Resource: Its People
Beyond trade and investment, the Ambassador turned his attention to human capital development and the importance of preparing PNG’s youth for the future.
“By 2050, PNG’s population will have doubled. Half the population will be under 25,” he said. “If you want to be efficient in the next 25 years, you need to start after the jubilee—or better yet, yesterday.”
“PNG has a brilliant future. The population knows it, officials know it and all the challenges are known. Now, it’s a common endeavour to make the next 25 years the rising of PNG in the region.”
Fradin said the EU looked forward to PNG’s 50th independence anniversary and remained committed to strengthening their long-term partnership.
