Papua New Guinea has reiterated its position outside the PACER Plus trade agreement while continuing to pursue alternative partnerships with Australia, New Zealand and Asian markets.
While several Pacific Island countries have implemented PACER Plus to support tariff cooperation and trade facilitation, Papua New Guinea maintains that the agreement does not currently align with its market scale, industrial structure or export diversification objectives.
The government is prioritising frameworks that support value-added processing in agriculture, forestry and fisheries. Discussions continue with Japan, Indonesia and other Asian partners to expand market access and coordinate investment in logistics and processing facilities. Proposals for a Comprehensive Economic Partnership Agreement with Australia and New Zealand remain under exploration.
Meanwhile, in an interview on news outlet Pacific Mornings, New Zealand Prime Minister Christopher Luxon said the Pacer Plus agreement was working effectively across the Pacific region, despite the Papua New Guinea government’s concerns that it does not benefit PNG’s interests.
“We know from our own experience as a small country that being part of those big trading agreements where the vast majority of our trade is now delivered and done is actually a really good thing,” Luxon is quoted as saying.
Critics of the diversified approach argue that regional trade fragmentation could complicate Pacific economic cooperation. However, Papua New Guinea contends that multiple trade pathways can coexist and that national development priorities must guide trade commitments.
For businesses, policy clarity is key. Exporters and processors are seeking reliable signals on tariff schedules, certification standards and customs procedures. Continued dialogue between government and industry will be essential to maintaining confidence as negotiations progress.
