To celebrate the 50th anniversary of independence in Papua New Guinea, for the month of September Australian Policy and History is publishing policy briefs written by students studying at Honours, Masters or Doctoral levels who attended a June 2025 intensive workshop on Papua New Guinea and Australia, sponsored by DFAT and run by Deakin’s Centre for Contemporary Histories, at the National Portrait Gallery in Canberra.

 

Attention: The Minister for Trade and Tourism, Senator the Hon Don Farrell, MP 

 

Purpose 

Despite deep historical and diplomatic ties, trade between Australia and Papua New Guinea remains significantly imbalanced, with Australia’s exports a broad array of manufactured goods and services, while PNG’s exports are largely confined to extractive resources such as gold. This policy brief proposes four practical measures to support PNG’s export diversification and enhance market access, building on the 1976 Trade Agreement’s commitment to a Free Trade Area and the removal of duties and restrictive trade barriers on goods originating from both countries.   

 

The Problem 

PNG’s trade with Australia is mostly concentrated in gold and precious metals. In 2022, PNG exported over AUD$1.6 billion to Australia, with more than 98% comprising gold and other extractive resources. Meanwhile, Australia exported AUD$95.9 million worth of manufactured goods, machinery, and processed foods to PNG. PNG’s agricultural and manufactured goods face significant barriers to entering the Australian market due to strict biosecurity, technical, and import standards. This makes it difficult for PNG to diversify its export base, hindering PNG’s broader economic development. 

 

Courses of Action 

 

  1. Create a Bilateral Trade Facilitation and Investment Hub

Establish a joint hub in PNG to support exporters with compliance, logistics, and market intelligence. The hub could also attract Australian investment into PNG’s agricultural sector, advancing joint ventures that produce goods tailored for the Australian market. 

 

  1. Develop Product-Specific Import Protocols for High-Value PNG Goods

 

Specific PNG agricultural products like vanilla, cocoa, and spices should have tailored protocols that would allow controlled entry of these goods, supported by risk assessments and pilot import programs. 

 

  1. Facilitate Long-term Commercial Contracts for Agricultural Products 

Encourage Australian importers to enter long-term agreements with PNG agricultural producers. These contracts would incentivize quality assurance and provide a stable framework for meeting biosecurity and market standards. 

 

Policy Recommendation 

The 1976 Agreement also encouraged Australian direct investment in PNG through joint ventures (Article 14), supporting the recommendation to promote SME collaboration and co-production between PNG and Australian firms. To further strengthen our shared history and build a shared future, it is recommended that a practical engagement strategy centred on the following actions be undertaken; 

 

  • Standards Alignment and Certification Support 
  • Establish bilateral technical working groups to help PNG producers meet Australian biosecurity and quality standards. 
  • Fund certification hubs and export readiness programs in PNG. 

 

  • SME Collaboration and Joint Ventures 
  • Facilitate partnerships between PNG SMEs and Australian businesses, producers, and farmers. 
  • Promote co-production and joint ventures to build capacity and market access. 

 

  • Capacity Building and Expert Exchange 
  • Deploy Australian experts to PNG to train local producers in compliance, packaging, and quality control. 
  • Support vocational training programs focused on export-oriented manufacturing and agriculture. 

 

  • Trade Representation and Advocacy 
  • Appoint a PNG Honorary Trade Commissioner in Australia to promote PNG exports and attract investment. 
  • Launch a PNG-Australia Trade Facilitation Taskforce to monitor progress and resolve trade barriers. 

 

Contact: Cedric Cotu Kengi 

Student – Master’s in Governance & Public Policy, University of Queensland  

Email: cedric.kengi@gmail.com or c.kengi@student.uq.edu.au  

 

Sources Consulted 

 

1: PNG Business News, “ Imbalanced Trade Relations Highlighted; May 18, 2023 – Port Moresby 

2: PNG Facts, August 14, 2024, “Call for Balanced Trade Partnership”,   

3: Austrade; “Long-term Trade Relationship, August 14, 2024 

4: https://tradingeconomics.com/australia/exports/papua-new-guinea 

5: https://www.worldtradelaw.net/document.php?id=fta/agreements/patcrafta.pdf&mode=download 

Cedric Cotu Kengi

My name is Cedric Cotu Kengi, from Southern Highlands Province of Papua New Guinea, and married with 4 children. I did my undergraduate degree in Business and Management (Public Policy), completed in 2014 at the University of Papua New Guinea (UPNG), and an Executive MBA from the same institution, which I completed in 2023 and graduated the following year.

I was given the opportunity to receive this prestigious Australia Awards Scholarship this year, 2025, and am currently undertaking my second master’s degree in Master of Governance and Public Policy (MGPP) at the University of Queensland in Brisbane. I live in Brisbane, Queensland