Papua New Guinea: Trade Profile
Papua New Guinea is open to trade, which represents around 131% of GDP (World Bank, latest data available). The country is in the process of liberalizing its trade and investment system. LNG remains PNG’s top export commodity, growing from PGK 9 billion in 2017 to PGK 13 billion in 2022 (38% increase) at an average growth rate of 6%. Gold, while the second-largest export, saw a significant decline by 14% from 2017 to 2022. Palm Oil emerged as the third-largest export commodity, surging from PGK 1.6 billion in 2017 to PGK 3.1 billion in 2022 (100% increase) with an average growth rate of 48%. Petroleum oils and oils obtained from bituminous minerals, apart from crude, increased by 62.5% from PGK 1.6 billion in 2021 to PGK 2.6 billion in 2022. Rice is the second-largest import commodity in PNG and increased by 12% from PGK 628 million to PGK 666 million in 2022, surpassing machinery parts. Transmission apparatus for radio and broadcasting saw a remarkable 997% increase, rising from PGK 47 million to PGK 447 million. This is attributed to the entry of major mobile and ICT companies into the PNG market, including Vodafone and Telstra’s acquisition of Digicel in the Pacific (data National Statistical Office).
According to OEC figures, in 2022, exports were mainly destined to Japan (26.1%), China (22.3%), Australia (11.3%), South Korea (9.6%), and Taiwan (9.5%); whereas imports came chiefly from China (26.1%), Australia (23.2%), Singapore (15.6%), Malaysia (9.3%), and Indonesia (4.5%). The country received MFN (most favored nation) status from WTO members and benefits from preferred rights with the European Union after signing an Interim Economic Partnership Agreement in July 2009. Thus, imports from Papua New Guinea have duty-free access into the EU market. The policy goal is to maximize trade and investment by increasing exports, to reduce imports. The government is aiming to phase out the export of unprocessed round logs in the coming years and to expand domestic processing of logs to get more revenue, according to the Ministry for Forestry. For the past two decades, Papua New Guinea has been following a policy of tariff reduction, and on three-quarters of imports, where there is no domestic production, no tariffs apply.
According to WTO data, in 2022, Papua New Guinea exported goods for a total value of USD 14.5 billion, while imports increased to USD 3.5 billion (+31% and -30% y-o-y, respectively). The decline in imports was largely attributed to lower food manufacturing and capital machinery imports.
| Foreign Trade Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Imports of Goods (million USD) | 4,127 | 3,661 | 5,137 | 5,296 | 3,019 |
| Exports of Goods (million USD) | 10,946 | 9,077 | 11,269 | 14,327 | 12,036 |
| Imports of Services (million USD) | 2,105 | 1,692 | 2,022 | 2,400 | 0 |
| Exports of Services (million USD) | 291 | 98 | 178 | 223 | 0 |
| Trade Balance (million USD) | 6,722 | 5,487 | 6,474 | 8,735 | 7,600 |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
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| 0.2 bn USD of services exported in 2021 | |
|---|---|
| 68.28% | |
| 17.07% | |
| 4.97% | |
| 3.61% | |
| 3.36% | |
| 1.17% | |
| 1.04% | |
| Personal travelPersonal travel | 1.04% |
| OtherOther | 93.99% |
| 0.48% | |
| 0.03% | |
| 2.0 bn USD of services imported in 2021 | |
|---|---|
| 62.46% | |
| 23.03% | |
| 5.07% | |
| Personal travelPersonal travel | 5.07% |
| OtherOther | 71.89% |
| 2.66% | |
| 2.48% | |
| 2.30% | |
| 1.33% | |
| 0.67% | |
| n/a% | |
Source: United Nations Statistics Division, Latest Available Data
Member of Commonwealth of Nations
Member of Commonwealth of Nations
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Latest Update: May 2024
