EU Statement at the Trade Policy Review of Papua New Guinea, 11 February 2026

On behalf of the European Union, I would like to welcome the Delegation of Papua New Guinea, led by H.E. Ambassador Ms Michelle HAU'OFA, and thank her team in Geneva for their constructive engagement in this fourth Trade Policy Review. We welcome that Papua New Guinea has now established a mission in Geneva, and we look forward to closer cooperation on WTO matters that this step will enable. I also wish to express our appreciation to the WTO Secretariat for its comprehensive and analytical report, as well as to Papua New Guinea for the submission of its Government report, which together provide a solid basis for today’s discussion. Allow me also to thank the Discussant, H.E. Mr Nur Rakhman SETYOKO (Indonesia), for the insightful introduction.

This fourth Trade Policy Review offers a timely opportunity to assess developments in Papua New Guinea’s trade and investment regime since its previous review in 2019. The European Union enjoys a long-standing and close partnership with Papua New Guinea, historically under the Cotonou Agreement and, more recently, under the Samoa Agreement. Our economic relations are further underpinned by the EU–Pacific Economic Partnership Agreement, which has facilitated bilateral trade and investment flows since 2011.

The EU welcomes Papua New Guinea’s continued efforts to integrate trade policy into its national development agenda, particularly its stated objective of promoting sustainable growth and diversifying the economy beyond its traditional reliance on the extractive sector. These efforts are especially important in the context of Papua New Guinea’s development challenges, geographic constraints, and vulnerability to external shocks.

The EU commends Papua New Guinea for its engagement in the multilateral trading system. We particularly welcome Papua New Guinea’s commitment to improving trade facilitation, enhancing regulatory transparency, and strengthening institutional capacity, key elements for fostering a predictable, rules-based, and inclusive trading environment. We appreciate that Papua New Guinea is one of the co-sponsors of the request to incorporate the Investment Facilitation for Development Agreement into the WTO framework, and the EU is looking forward to work with Papua New Guinea on this crucial matter.

The EU also encourages Papua New Guinea’s ratification of the WTO Agreement on Fisheries Subsidies.

At the same time, the EU would like to highlight three areas where continued attention and reform could further enhance Papua New Guinea’s trade and investment performance:

First, regarding trade facilitation and customs procedures, we encourage Papua New Guinea to continue efforts to ensure consistent and uniform application of customs regulations across all ports of entry. While reforms are underway, the WTO Secretariat Report notes that implementation challenges remain, particularly in terms of coordination among border agencies. The EU has raised questions regarding Papua New Guinea’s technical assistance and capacity-building needs to further streamline border processes. In this context, we also note concerns expressed by the EU business community regarding high and sometimes unpredictable port charges, including those applied at ports managed by private contractors. Addressing these concerns would significantly improve trade competitiveness and reduce the cost of doing business.

Second, recognizing the importance of a stable, transparent, and predictable investment climate, the EU is keen to gain further clarity on the implementation of recent fiscal and tax reforms, notably the Income Tax Act 2025. While we acknowledge Papua New Guinea’s objective of strengthening domestic revenue mobilization, it is essential that new measures, such as the application of Capital Gains Tax, particularly in the resource sector, are clearly defined, consistently applied, and accompanied by appropriate transitional arrangements. Legal certainty in this area is crucial for maintaining investor confidence.

Third, the EU strongly encourages Papua New Guinea to accelerate the full operationalization of its National Electronic Single Window. This system, developed with technical support from UNCTAD and funded by the European Union, represents a critical digital trade reform. Once fully implemented, the Single Window will automate and streamline trade procedures, reduce administrative burdens, enhance transparency, and minimize opportunities for corruption by limiting physical paperwork and face-to-face interactions. Its effective deployment would significantly improve market access, trade efficiency, and Papua New Guinea’s integration into regional and global value chains.

Chair, in closing, the European Union thanks Papua New Guinea for its comprehensive responses to the advance written questions. We look forward to a continued constructive engagement and reaffirm our commitment to supporting Papua New Guinea’s trade-related reforms through dialogue, technical cooperation, and our broader partnership. On behalf of the European Union, I wish Papua New Guinea every success in its fourth Trade Policy Review. 

Thank you.