The National Executive Council has approved a proposed structure to set up a Trade Commission and realign the Department of Foreign Affairs and Trade and Commerce and Industry (DCI) to support the trade function.
Prime Minister Peter O’Neill said that trade is of an increasing importance in a globalised market place, and that PNG’s natural resources are significant and the basis of a development mechanism and international significance needs to be better reflected in government structures.
The Prime Minister said in the absence of political leadership, centralized coordination and sufficient resourcing, trade as a function for development has been neglected and has accordingly resulted in very little market development and weak and uncoordinated negotiations.
“The overall objective is to achieve and maintain sustainable growth of international trade, wealth creation and sustainable economic growth, which will contribute towards achieving the goals of Vision 2050,” said O’Neill.
The proposed reform programs will build on the foundations and lessons learnt and place emphasis on efficient and accountable delivery of reforms and management of trade and commerce related issues.
The Prime Minister said a clear mandate for efficient and accountable management for trade and commerce will ensure better management and value for resource and will maximize the benefits from increased participation.
He explained the reforms will extend support to coordinating agencies involved in international trade and focus on trade facilitation and will strengthen the private sector’s capacity to participate in trade and commerce.
A Trade Committee will be established with particular instructions to develop a trade policy and agency restructure.
The Prime Minister said the division will remain under DFAT but will be elevated to have a dedicated deputy secretary for Trade.
O’Neill explained the trade division will have the primary responsibility of trade policy development, implementation of trade policy reforms and negotiations while the commission will be responsible for trade and investment promotion, development and negotiation assistance.
He further added that the IPA will eventually relinquish all trade promotion activities and focus on the regulation of onshore commercial activity.
IPA will then be renamed after a review.
“The International Business Division of DCI and associated position and budget will be relocated to DFAT to form the beginning of the trade commission. This initiative is intended to beef up the performance of trade as a function for robust development,” said O’Neill.
NEC has directed the trade committee with the international business unit of DCI and the trade division of DFAT to commence consultation and complete an updated trade policy within six months. Labels: Toksave