Largest trade delegation ever going to Indon in June

[Palm]

Largest group of people ever including PM O'Neill will be going to Indon June 17-21. Petroleum is one of areas targeted to establish trade ties due to Indonesia's long history of petroleum discovery and processing (Arun kind of a big one):

PNG to send trade group to Indonesia

Source:

The National, Monday 20th May 2013

 By GYNNIE KERO

LOCAL business entrepreneurs will be a part of a delegation that will explore business or joint venture   tie-ups in Indonesia.

According to Trade Commerce and Industry Minister Richard Maru in Port Moresby last week, plans are underway for the biggest trade group ever put together.

The visit is in time for Prime Minister Peter O’Neill’s visit to Indonesia from June 17-21.

“Although we have a land border with Indonesia, we have not really looked at the market.

“Indonesia has a population of 150 million … this is a vast potential for PNG market … we have never tapped into that market.”

During O’Neill’s visit, the delegation will look at opportunities and establish trade links and joint ventures with Indonesia’s private sector.

“Indonesia is also strong in many areas, with expertise in manufacturing and mining and petroleum areas. They (Indonesia) have a lot of agriculture-based industries which we (PNG) can learn from.

Maru said: “One of the biggest things we would like to do while in Indonesia is to finalise talks that would allow Air Niugini to open up direct flights to Jakarta.

“PNG is now focused on ongoing trade relations with Indonesia.

“The government is keen for Air Niugini to have flights to Indonesia by middle of this year.

Maru also plans to have a trade representative to be based in Jakarta starting next year as PNG ramps up trade and business links with Asia.

He said discussions are in place to invest in upgrading the Wewak wharf and airport facilities to international standards to take in cargo ships and aircraft from Indonesia.

http://www.thenational.com.pg/?q=node/50052

[ArtM72]

Always sort of wondered why Indonesia was rarely if ever mentioned in articles re PNG. Wondered if there was bad blood or if PNG just wasn't a player of interest, simply an inhabitant of one of Indonesia's many islands.

[jft310]

Like Japan and Korea , Indonesia needs the NG

[Palm]

Interesting how PNG is quickly evolving. They are moving toward "demanding" recognition as a major island trading partner and standing up a bit to Australia and New Zealand. In a story today there is a very interesting mention of how PNG is considering withdrawing from PACER because they feel they get nothing in return from Australia and New Zealand. Will have to watch where this all goes, but PNG is playing the role of a leader in the region as far as trade. They know the power and influence their resource projects are giving them.


"Pacific trade talks 'waste of time': PNG

Samisoni Pareti

Posted 7 hours 40 minutes ago

Officials from Papua New Guinea say they are considering withdrawing from free trade negotiations between Pacific Island countries and Australia and New Zealand.

PNG's Trade Minister, Richard Maru, on Monday told a meeting of trade ministers from the Melanesian Spearhead Group that his country was considering withdrawing from Pacific Agreement on Closer Economic Relations (PACER) negotiations.

"My country is not interested in PACER Plus, our focus is the MSG Trade Agreement," Minister Maru told a press conference convened at the end of the meeting at the Sofitel Fiji Resort and Spa in Nadi.

Fifteen countries are involved in the PACER negotiations, with the aim of helping Pacific Islands Forum countries benefit from enhanced regional trade and economic integration.

Asked whether PNG would withdraw immediately from PACER Plus negotiation talks, Mr Maru said the matter is under serious review by PNG's government.

"Our feelings at the moment is that PACER Plus would be one sided in favour of Australia and New Zealand," he said.

"We are frustrated with them. We can't export our taro there, they wont accept our greens.

"There's nothing to be gained from a trade agreement at the moment. We cannot justify the huge amount of resources we expend on such negotiations. They are a complete waste of time."

Asked for Fiji's position on PNG's stand, the country's Minister for Trade and Attorney General, Mr Aiyaz Sayed Khaiyum, said Fiji sees a lot of merit in PNG's position.

He said Melanesian countries need to consolidate their trading capacities first before they look at free trade pacts with their bigger neighbours."


http://www.abc.net.au/news/2013-05-20/an...n=business

[admin]

It's notable what, while certainly not perfect, the O'Neill govt. has made in terms of difference. Quality of government matters a great deal, especially in these resource rich emerging economies like PNG. It has a lot of natural resources, but the natural resource business by nature is capital intensive, hence the immediate beneficiaries are usually few, giving these enormous economic, and often also political cloud.

History is littered with examples of countries with similar resource endowments in which the top business and political elite profited at the cost of the larger population. While the jury is still out, the O'Neill govt. actually looks like handling this very well. Guaranteeing property rights, trade, power plants, infrastructure, free education, healthcare, the foundations could be laid for a more prosperous PNG as we speak, but such an outcome is by no means guaranteed.

[Palm]

And this is happening at the right time. The World Bank's Global Development Horizon report was just issued last week and as we'd expect by 2030 things will change significantly:

"Seventeen years from now, half the global stock of capital, totaling $158 trillion (in 2010 dollars), will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock, says the latest edition of the World Bank’s Global Development Horizons (GDH) report, which explores patterns of investment, saving and capital flows as they are likely to evolve over the next two decades.

Developing countries’ share in global investment is projected to triple by 2030 to three-fifths, from one-fifth in 2000, says the report, titled ‘Capital for the Future: Saving and Investment in an Interdependent World’. With world population set to rise from 7 billion in 2010 to 8.5 billion 2030 and rapid aging in the advanced countries, demographic changes will profoundly influence these structural shifts.

“GDH is one of the finest efforts at peering into the distant future. It does this by marshaling an amazing amount of statistical information,” said Kaushik Basu, the World Bank’s Senior Vice President and Chief Economist. “We know from the experience of countries as diverse as South Korea, Indonesia, Brazil, Turkey and South Africa the pivotal role investment plays in driving long-term growth. In less than a generation, global investment will be dominated by the developing countries. And among the developing countries, China and India are expected to be the largest investors, with the two countries together accounting for 38 percent of the global gross investment in 2030. All this will change the landscape of the global economy, and GDH analyzes how.”

As we know, PNG is positioning itself perfectly to be a part of this explosion.

http://www.worldbank.org/en/news/press-r...ank-report