China, Papua New Guinea discuss free-trade deal

PORT MORESBY

China and Papua New Guinea held talks on a free-trade deal on June 3, as Beijing’s foreign minister wrapped up a landmark tour of the Pacific Islands with a stop in the resource-rich nation.    

Papua New Guinea’s Prime Minister James Marape said discussions in the capital Port Moresby had focused on economic cooperation and a long-mooted trade agreement.    

China is already a major investor in Papua New Guinea and buys much of the country’s gas, minerals, timber and other resources.    

Beijing is vying with Australia to be Papua New Guinea’s leading trading partner.    

Marape, who has vowed to make his country the world’s richest black Christian nation, said he wants to shift the economy away from primary materials to more lucrative finished products.    

He has invited more Chinese investment and said work was ongoing on a trade deal.

“The specifics of the free-trade arrangement are being finalised as we go through, so that Papua New Guinea interests are not suppressed or harmed, but maintained and in fact augmented,” Marape said.  

His comments come as China, Australia and other Western allies race for influence across the Pacific Islands.    

The vast but sparsely populated region is home to vital shipping channels and - because of its location near areas where the Chinese and U.S. militaries operate - seen as strategically important.    

Chinese foreign minister Wang Yi has criss-crossed the South Pacific for more than a week, pressing the case for a greater role by Beijing in regional security.    

His trip prompted Australia’s new foreign minister Penny Wong to make quick-fire visits to three Pacific Island states, looking to shore up decades-long alliances.