Papua New Guinea has signed a Framework Agreement on Enhanced Economic Partnership with China, paving the way for deeper bilateral trade cooperation and future negotiations on a potential free trade agreement between the two countries.
The agreement was signed on May 21 in Suzhou, China, by Papua New Guinea Minister for International Trade and Investment Richard Maru and Chinese Commerce Minister Wang Wentao during the Asia-Pacific Economic Cooperation, or APEC, Ministers Responsible for Trade Meeting.
In a joint statement, both sides said the agreement reflected their commitment to further strengthening and elevating China–Papua New Guinea economic and trade relations under their Comprehensive Strategic Partnership Featuring Mutual Respect and Common Development.
The two countries also acknowledged the completion of a Joint Feasibility Study on a possible free trade agreement, saying the report would serve as an important reference for future trade negotiations and practical cooperation initiatives.
Under the framework agreement, both parties agreed to launch subsequent module negotiations “as soon as possible” and explore new opportunities to expand bilateral economic and trade cooperation.
Both governments said any future trade agreement should be mutually beneficial and take into account the differing levels of development between the two countries.
The statement said future negotiations would aim to be fair, transparent and reflective of the respective needs and capacities of both parties.
China also recognized Papua New Guinea’s trade capacity needs identified in the Joint Feasibility Study, with both sides committing to pursue “pragmatic outcomes” in future practical cooperation.
The two countries further agreed to align development strategies, expand cooperation across areas of mutual interest, and promote the liberalization and facilitation of trade and investment.
They also pledged to strengthen coordination and collaboration under multilateral frameworks including the United Nations and APEC.
