Marape: Global Markets Want PNG’s High-Quality Coffee and Cocoa

  Papua New Guinea has officially expressed its desire to establish a Comprehensive Economic Partnership Agreement (CEPA) with Japan, marking a potential turning point in the bilateral relationship between the two countries that has spanned five decades.

Papua New Guinea Eyes Trade Deal with Japan After 50 Years of Diplomatic Ties

PNG’s Minister for International Trade and Investment, Hon. Richard Maru, conveyed this message during his inaugural formal meeting with Japan’s Minister for Economy, Trade and Industry, Hon. Koga Yuichiro, in Tokyo on Monday. Minister Maru said PNG aims to anchor its future economic relations with Japan through a formal agreement that would promote deeper trade and investment cooperation.

In his remarks, Minister Maru extended his appreciation to the Japanese Government and its citizens for their longstanding support over the past 50 years. He acknowledged Japan’s contribution to PNG’s development through educational scholarships, aid from agencies like the Japan International Cooperation Agency (JICA) and the Japan Bank for International Cooperation (JBIC), and assistance during natural disasters. He highlighted recent contributions including the Tomodachi International Airport in Lae and a US$1.8 billion JBIC loan for the Papua LNG Project.

According to Minister Maru, Japan is currently PNG’s largest export market, rivaled only by China. He noted that PNG exports around US$4 billion worth of goods to Japan annually, while imports from Japan total about US$250 million. “The trade relationship clearly favours PNG, but we believe there is considerable room for growth in both investment and trade volumes,” he said, urging that a formal CEPA could serve as the foundation for a new phase in bilateral relations.

Responding to the proposal, Minister Yuichiro acknowledged the importance of deepening economic ties but emphasized the need to address key trade issues. He outlined several prerequisites for strengthening relations, including establishing direct flights between the two countries, enabling visa-on-arrival for Japanese passport holders, and considering fiscal and non-fiscal incentives such as duty-free access for Japanese products in PNG.

Minister Yuichiro further requested that PNG submit a clear framework for the proposed CEPA if it intends to pursue negotiations seriously. In reply, Minister Maru assured that the PNG Government would prioritize the development of such a framework with the aim of initiating formal discussions within the year.

Minister Maru concluded by encouraging more Japanese investment in the PNG LNG sector. He noted that while Japan currently sources 6% of its energy needs from PNG, it holds only a 5% stake in PNG LNG. He expressed hope that Japanese firms would consider increasing their ownership share not only in LNG but also in mining, petroleum, and other key industries.

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Marape: Global Markets Want PNG’s High-Quality Coffee and Cocoa