RESTRICTED WT/TPR/S/387 3 April 2019

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RESTRICTED WT/TPR/S/387 3 April 2019 RESTRICTED WT/TPR/S/387 3 April 2019 (19-2099) Page: 1/87 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT PAPUA NEW GUINEA This report, prepared for the third Trade Policy Review of Papua New Guinea, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Papua New Guinea on its trade policies and practices. Any technical questions arising from this report may be addressed to: Ricardo Barba-Viniegra (tel.: 022 739 5088); and Rosen Marinov (tel.: 022 739 6391). Document WT/TPR/G/387 contains the policy statement submitted by Papua New Guinea. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Papua New Guinea. This report was drafted in English. WT/TPR/S/387 • Papua New Guinea - 2 - CONTENTS SUMMARY ....................................................................................................................... 6 1 ECONOMIC ENVIRONMENT ....................................................................................... 10 1.1 Main Features of the Economy .................................................................................... 10 1.2 Recent Economic Developments .................................................................................. 11 1.3 Developments in Trade and Investment ....................................................................... 13 1.3.1 Trends and patterns in merchandise and services trade ............................................... 13 1.3.2 Trends and patterns in FDI ...................................................................................... 16 2 TRADE AND INVESTMENT REGIMES.......................................................................... 18 2.1 General Framework ................................................................................................... 18 2.2 Trade Policy Formulation and Objectives ....................................................................... 18 2.3 Trade Agreements and Arrangements .......................................................................... 22 2.3.1 WTO ..................................................................................................................... 22 2.3.2 Regional and preferential agreements ....................................................................... 23 2.3.2.1 European Union–PNG/Fiji EPA ................................................................................ 25 2.3.2.2 MSGTA ............................................................................................................... 25 2.3.2.3 PICTA ................................................................................................................. 26 2.3.2.4 SPARTECA ........................................................................................................... 26 2.3.2.5 Other arrangements ............................................................................................. 26 2.3.3 Investment regime ................................................................................................. 27 3 TRADE POLICIES AND PRACTICES BY MEASURE ....................................................... 30 3.1 Measures Directly Affecting Imports ............................................................................. 30 3.1.1 Customs procedures, valuation, and requirements ...................................................... 30 3.1.2 Rules of origin ........................................................................................................ 31 3.1.3 Tariffs ................................................................................................................... 31 3.1.4 Other charges affecting imports ................................................................................ 35 3.1.4.1 Border levies ....................................................................................................... 35 3.1.4.2 Internal taxes ...................................................................................................... 35 3.1.5 Duty and tax concessions ........................................................................................ 36 3.1.6 Import prohibitions, restrictions, and licensing ........................................................... 36 3.1.7 Anti-dumping, countervailing, and safeguard measures ............................................... 36 3.1.8 Other measures affecting imports ............................................................................. 36 3.2 Measures Directly Affecting Exports ............................................................................. 37 3.2.1 Customs procedures and requirements ...................................................................... 37 3.2.2 Taxes, charges, and levies ....................................................................................... 37 3.2.3 Export prohibitions, restrictions, and licensing ............................................................ 37 3.2.4 Export support and promotion .................................................................................. 37 3.2.5 Export finance, insurance, and guarantees ................................................................. 38 3.3 Measures Affecting Production and Trade ...................................................................... 38 3.3.1 Incentives .............................................................................................................. 38 WT/TPR/S/387 • Papua New Guinea - 3 - 3.3.2 Standards and other technical requirements .............................................................. 38 3.3.3 Sanitary and phytosanitary requirements ................................................................... 39 3.3.4 Competition policy and price controls ........................................................................ 40 3.3.4.1 Competition policy ............................................................................................... 40 3.3.4.2 Price controls....................................................................................................... 42 3.3.5 State trading, SOEs, and privatization ....................................................................... 42 3.3.6 Government procurement ........................................................................................ 43 3.3.7 Intellectual property rights (IPRs) ............................................................................. 44 4 TRADE POLICIES BY SECTOR .................................................................................... 45 4.1 Agriculture, Forestry, and Fisheries .............................................................................. 45 4.1.1 Agriculture ............................................................................................................. 45 4.1.2 Forestry ................................................................................................................. 48 4.1.3 Fisheries ................................................................................................................ 49 4.2 Mining and Energy ..................................................................................................... 51 4.2.1 Mining ................................................................................................................... 52 4.2.2 Oil ........................................................................................................................ 53 4.2.3 Natural gas ............................................................................................................ 54 4.2.4 Electricity .............................................................................................................. 56 4.3 Manufacturing ........................................................................................................... 58 4.4 Services ................................................................................................................... 59 4.4.1 Overview ............................................................................................................... 59 4.4.2 Financial services .................................................................................................... 60 4.4.2.1 Banking ................................................................................................................ 61 4.4.2.2 Insurance ........................................................................................................... 62 4.4.3 Telecommunications and postal services .................................................................... 62 4.4.4 Transport ............................................................................................................... 64 4.4.4.1 Overview ............................................................................................................ 64 4.4.4.2 Road transport .................................................................................................... 65 4.4.4.3 Maritime transport ............................................................................................... 66 4.4.4.4 Air transport .......................................................................................................
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