Contains general information, updated economic indicators, Australia`s trade and investment relations with Papua New Guinea and their global trade relations, which are updated twice a year. Intra-regional trade has evolved only slowly in the Pacific due to logistical complications, costs and other obstacles. In 2015, the Pacific Islands Trade Report 2010-14, implemented by the EU-funded «Increasing Agricultural Commodity Trade» project, was published to provide a statistical basis and basis for trade development in the islands. The publication shows that intra-regional trade amounted to only $329.8m, with Fiji being the only economy to have developed a market on the Pacific island for its products, which account for 96% of intra-regional exports. PNG has several trade agreements with industrialized countries. The Trade and Trade Agreement between Australia and PNG allows duty-free access for PNG products in Australia, with the exception of products such as sugar, footwear, textiles, beverages and manufactured tobacco. PNG has also entered into an economic partnership agreement with the EU, as well as bilateral investment agreements with Australia, China, Germany, Japan and the United Kingdom. Prime Minister Peter O`Neill also said PNG could become a signatory to the Trans-Pacific Partnership, with press reports indicating that other APEC countries, including PNG, could be invited to join the Pact. Critics say the theory behind the agreement is wrong. The idea behind PACER Plus is that by exposing the islands to increased competition, they have access to cheaper products and, as a result, they themselves become more competitive. However, the Pacific Network on Globalization (PANG), a regional NGO, says that while this dynamic can work for larger markets, it is probably not suited to the Pacific, where transportation costs are high, people are small, distances are large and land is generally maintained.
The Pacific Closer Economic Relations Agreement (PACER Plus) is a draft free trade agreement between pacific Island Forum member states. The proposed agreement has been under negotiation since 2009 and talks are expected to conclude before the end of 2016.