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PNG Enjoys Trade Surplus Of K260m In UK Market



Papua New Guinea has enjoyed a trade surplus of K260 million (GBP58 million) with its trading partner the United Kingdom.


British High Commissioner to PNG Keith Scott said this trade surplus came at the back of UK-PNG trade results for the first quarter of 2020 seeing total trading of goods and services between UK and PNG at K500 million (GBP110 million), which is 10 per cent lower than the same period last year.


Though the UK has a trade surplus in services at K22 million (GBP5 million) PNG was able to enjoy a surplus since 2013 and has been consistent since.


Mr Scott was speaking at a Port Moresby Chamber of Commerce and Industry information session on marketing PNG: UK and International Trade after leaving EU (BREXIT) on Tuesday in Port Moresby.


He said UK’s foreign direct investment to PNG in 2018 sits at K1.2 billion (GBP260 million).


“It’s actually quite a decent respectable figure as some people will think that there is no trade but it’s actually quite a reasonable figure.


“The vast bulk of PNG exports to the UK is palm oil that’s 60 million GBP or K270 million 80 per cent of PNG’s export, tuna 12m GBP or K50m 16 per cent, coffee and cocoa was 1.3m GBP K5m 2 per cent,” Mr Scott said.


“That’s down by 10 per cent of the previous year and we think that’s because of Covid and all volumes are all down but the trend is pretty steady over the last three years.


“Over the last 10 years UK has only been in surplus twice with Papua New Guinea the other years it’s been Papua New Guinea’s benefit in the trade balance.”


However, he said though PNG is one of UK’s largest trading partners, it consists of less than one per cent of UK’s trade compared to other smaller economies in the world.


“One of the challenges for me as a diplomat here trying to market PNG to British business because as far as the public service in UK is concerned there is no business here.


“I have no trade resource whatsoever, and when I say I need more help I have the 142 largest markets in the world it doesn’t cut it.


“That is why a trade partnership program is needed to assist PNG with technical help and promotion for more trade,” Mr Scott added.

Source: https://postcourier.com.pg/png-enjoys-trade-surplus-of-k260m-in-uk-market/

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