PNG is on Target to Achieve APEC Goals

An independent report has found that Papua New Guinea has made significant progress to achieve its free trade and investment goals as part of the APEC process. The report also praised reforms underway in Papua New Guinea to increase transparency.

The "IAP Study Report Papua New Guinea" is a review of the implementation of Papua New Guniea's Individual Action Plan (IAP) to achieve APEC's free trade and investment goals. Compiled by Independent Expert, Mr. Gordon La Fortune from Grey, Clark, Shih and Associates of Canada, the report covers thirteen specific issue areas relating to the realization of APEC's goals.

In the report Mr. La Fortune highlights the structural reforms introduced in Papua New Guinea since the mid 1990's that have made significant progress toward achieving free trade and investment objectives.

"The Tariff Reform Program and the decision to establish the Independent Consumer and Competition Commission are the most important steps taken to date," Mr. La Fortune said.

"Although the Independent Consumer and Competition Commission was only established in 2002, it has made steady progress in regulatory review and deregulation.

"So long as the political will exists to support the Commission and its work, there is no reason to believe that it will not enforce competition laws in a fair and transparent manner."

Mr. La Fortune was complimentary of the work of the Investment Promotion Authority to introduce reforms that increase transparency and make PNG more attractive to investors.

"The Investment Promotion Authority is working to reduce barriers to investment by eliminating the Reserved Activities List in favour of the more open Cottage Business Activities List.

"The Investment Promotion Authority is also seeking to eliminate 'special arrangements' or 'time factored' incentives and Ministerial discretion in favour of transparent legislated tax incentives that would apply to all investors.

Mr. La Fortune also praised amendments to the government procurement system which is being amended, including elimination of Ministerial Waivers. He noted that these changes to government procurement should limit the use of sole source procurements and move towards greater transparency. Mr. La Fortune concluded that the objectives outlined in the report can be achieved so long as Government continues to support the program and can make budgetary resources available.

Excerpts from each of the thirteen areas of assessment are now available by clicking here. The full report will be available on the e-IAP website once it has been presented to APEC Senior Officials in Seoul on March 4.

IAPs serve as a roadmap for APEC economies to achieve the Bogor Goals of free and open trade and investment in the APEC region. Agreed in Bogor, Indonesia, in 1994, the target for achieving the Bogor Goals is 2010 for industrialized economies and 2020 for developing economies. Seven APEC Member Economies are having their IAPs' reviewed at the current round of APEC meetings in Korea. This process involves a presentation by the Independent Expert to a meeting of Member Economies followed by an opportunity for these economies to question the economy under review on the details of their IAP.

The review of Papua New Guinea's IAP took place in Seoul this morning.

Click here for news photos relating to the IAP Study Report of Papua New Guinea.