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Papua New Guinea dismisses regional trade block, seeks bilateral trade treaty with Australia

Xinhua, May 16, 2016 Adjust font size:

Papua New Guinea on Monday said it is seeking a bilateral trade treaty with Australia similar to its agreement with the European Union instead of a regional agreement incorporating the wider Pacific.

The draft Pacific Agreement on Closer Economic Relations (PACER) Plus regional trade treaty encompassing the signatories to the Pacific Islands Forum (PIF) plus Australia and New Zealand is due to be signed in June.

However, following almost seven years of negotiations, Pacific heavyweights Papua New Guinea (PNG) and Fiji have been reluctant to sign to the deal which touts regional economic integration, as their economies are much larger and differ greatly to that of their smaller pacific neighbours.

"Our relationship with the Asian economies encourages us to take a different approach, PNG Prime Minister Peter ONeill told a business forum in Cairns on Monday.

"Papua New Guinea is more interested in pursuing a bilateral agreement with Australia that will serve our mutual trade interests well, as opposed to the proposed (PACER Plus) agreement that would have a negative impact on our trade arrangements between our two countries."

Xinhua has contacted Australian Trade Minister Steven Ciobo for comment.

ONeill hopes its joint economic partnership agreement with Fiji and the European Union as the basis for separate bilateral trade treaties with Australia and New Zealand.

European access has been beneficial for the nations exports which have doubled to since its inception in 2011, ONeill said.

The European Union is currently in negotiations for a comprehensive economic partnership agreement with all 14 Pacific island economies, covering trade in goods, services, development cooperation and trade related issues such as sustainable development and competition. Endit