Sunday, February 06, 2011

New Zealand and Papua New Guinea trade and economic relationship

Bilateral trade
Papua New Guinea is New Zealand’s second largest market in the Pacific region (behind Fiji, and not including Australia).

New Zealand Governor General Sir Anand Satyanand being taken around Goroka market by FPDA production and supply manager Robert Lutulule in Sept 2009.-Picture by MALUM NALU
New Zealand exports (FOB) to PNG were NZ$161.80 million in the year to June 2010 (7% increase on 2009) and included:
Sheep Meat 29.88
Iron or non-alloy steel (clad) 18.26
Milk Powder, butter and cheese 13.29
Machinery (Refrigerators) 13.07
Quicklime 10.21
Textiles 8.90
Iron/steel products for construction 8.75
Electrical Products 7.49
Trailers 5.84
Light Aircraft 5.07
Frozen vegetables 3.68
Other 37.36

New Zealand imports from PNG vary because of a purchase of approximately NZ$100 million worth of petroleum is made every second year.
Our other main imports from PNG include coffee, timber, palm oil and cocoa.
In 2008 PNG successfully completed a trial export of ginger to New Zealand, one of the first times PNG fresh produce has been exported to any country for commercial distribution.
Although other Pacific countries already export significant quantities of tropical fresh produce to New Zealand and elsewhere, to date PNG growers and distributors have focused on meeting domestic demand.
PNG is now interested in trialling further produce on the New Zealand market, including coconuts and taro.
To take advantage of market opportunities, however, it will need to boost commercial production to meet potential overseas orders, and encourage local growers and suppliers to consider fully commercialised exports.

Migration and labour mobility
New Zealanders are visiting Papua New Guinea in greater and greater numbers.
At almost 2500, the number of New Zealand visitors to Papua New Guinea is more than double what it was five years ago.
Papua New Guineans are eligible to participate in New Zealand’s seasonal labour scheme, but as yet, none have done so.
That should change soon – New Zealand’s Department of Labour has recently approved participation by two PNG citizens in the scheme.

Private sector partnerships
A range of New Zealand companies do business with Papua New Guinea across sectors including telecommunications, engineering, construction, education and insurance.
The New Zealand–Papua New Guinea Business Council – based in Auckland is the heart of the private sector relationship between the two countries.
Over 20 New Zealand businesses belong to the Council and are actively engaged in business activities in Papua New Guinea.
The council can be contacted by email on:
There is momentum building towards the establishment of a Papua New Guinea-based PNG-NZ Business Council to complement the New Zealand-based organisation, and also momentum building towards a New Zealand trade mission to Papua New Guinea in the first half of 2011.
These are both exciting developments and represent a big step in the already strong relationship between our two countries.

Working together in the wider trade arena
Together, Papua New Guinea and New Zealand are members of the Pacific Islands Forum, APEC and the World Trade Organisation.

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