Media Statement – PNG-UAE CEPA

The Prime Minister, Hon. James Marape, MP, reaffirmed this commitment during the signing of the Visa Waiver Agreement in Dubai, between the Independent State of Papua New Guinea and the United Arab Emirates on the 4th February 2026.

The negotiation of a CEPA is intended to establish a Free Trade Area, in accordance with WTO Agreement, Article XXIV on the General Agreements on Tariffs and Trade (GATTS) 1994, and Article V of General Agreement on Trade in Services (GATS) to promote opportunities for market access and trade liberalization for goods, services and investments to strengthen development of the digital economy and to deepen economic cooperation with the UAE. In doing so, the CEPA will incorporate appropriate flexibilities and provide special and differential treatment to PNG.

There is currently a stalemate in the WTO multilateral trade negotiations and high levels of policy uncertainty (i.e. Trump tariffs and looming global trade wars). Most countries are therefore relying on CEPAs and FTAs to provide a stable and predictable framework to conduct trade and investment. Unfortunately, PNG has only the MSGTA, EU-Pacific Interim Economic Partnership Agreement (IEPA), and UK-Pacific IEPA hence PNG needs to aggressively pursue negotiating and concluding new CEPAs and FTAs so that we do not get left behind.

The UAE is a genuine trade and investment partner. The UAE concluded a CEPA with India in just 88 days. It is the first bilateral agreement India signed in 10 years. The UAE also signed a CEPA with Australia in 11 months and with New Zealand in a groundbreaking record of 4 months. This indicates a good opportunity for PNG in the same spirit to negotiate a CEPA efficiently with the UAE.

The UAE is a high-income, service-oriented economy and is actively pursuing genuine partnerships and uses CEPAs to focus on strengthening global trade, logistics, and diversify its economy beyond oil, gas and minerals to accelerate economic growth. This gives a strategic advantage for PNG to export goods and services to the UAE market.

PNG’s initial offensive interests in pursuing a CEPA with the UAE are as follows:

𝗶. 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗼𝗯𝗷𝗲𝗰𝘁𝗶𝘃𝗲𝘀 𝗳𝗼𝗿 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻

Although there is limited trade between PNG and the UAE, there’s a need to diversify PNG’s trade and investment partners. PNG cannot continue to depend on traditional trading partners including Australia and China given the geopolitical tensions and market uncertainty

𝗶𝗶. 𝗡𝗲𝘄 𝗺𝗮𝗿𝗸𝗲𝘁 𝗮𝗰𝗰𝗲𝘀𝘀

As a high-income country, UAE consumers are able to pay premium prices for PNG agriculture and fisheries products. Through the CEPA, PNG has the opportunity to address tariff and non-tariff barriers and provide market access opportunities for PNG products.

𝗶𝗶𝗶. 𝗧𝗿𝗮𝗱𝗲 𝗳𝗮𝗰𝗶𝗹𝗶𝘁𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆

The UAE is a highly strategic location for PNG in terms of connectivity and trade facilitation. As a global logistics and re-export hub, the UAE offers world-class infrastructure that streamline customs procedures and links to major markets across the Middle East, Africa, Europe and even Asia.

𝗶𝘃. 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝘁𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗰𝗼𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻

As a leader in green finance and resilience, a CEPA with the UAE would serve as a catalyst. PNG could learn from the UAE and seek UAE’s technical capacity building and financial assistance for our renewable energy projects, ecotourism and other sustainable sectors. The UAE is the third-largest producer of petroleum products and having a trade partnership with UAE would help mitigate the risk of access to energy sources.

𝘃. 𝗔𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝗴𝗿𝗲𝗲𝗻 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 & 𝗮𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗺𝗮𝗿𝗸𝗲𝘁𝘀

A CEPA with the UAE would give confidence to UAE businesses to operate in PNG promoting competition in the financial services and giving more options to access to finance for local SMEs.

The UAE GDP in 2025 was estimated to total at around USD 587 billion, almost 18 times higher than PNG’s. With a population of 11 million, UAE’s GDP per capita stands around USD 64,097 making it a high-income nation. The UAE is highly dependent on foreign labour and about 85% of its population are foreigners. In terms of currency, 1 UAE Dirham is equivalent to about PNG Kina 1.12. The UAE is rapidly evolving into one of the most diverse economies with the nation’s intent to gradually reduce its reliance on exports of oil and gas in favour of tourism and business services while manufacturing, construction and agriculture sectors are developing. PNG, on the other hand, remains heavily dependent on exports of raw mineral and agricultural products.

GDP (USD)                          587.08 billion    32 billion

GDP per Capita (USD)       64,097 2,572

Population                          11 million           10 million

UAE GDP by sector Agriculture, forestry and fisheries (0.8%);

Mining and quarrying (29.1%);

Manufacturing (8.1%)

Electricity, gas and water (3.0%)

Construction (8.6%)

Services (49%)

————————————————————————–

PNG GDP by sector Agriculture, forestry and fisheries (18%);

Mining and quarrying (30.3%);

Manufacturing (2.1%)

Electricity, gas and water (1.2%)

Construction (7.2%)

Services (41.2%)

————————————————————————–

Status update on Preparations towards the PNG – UAE CEPA Negotiations 

The National Executive Council approved (NEC Decision No. 213/2025) the commencement of negotiations for the PNG–UAE Comprehensive Economic Partnership Agreement and authorized the establishment of the State Negotiating Team (SNT), supported by seven Technical Working Groups (TWGs) to negotiate the various chapters of the Agreement.

Following the NEC decision, the first National Stakeholder Consultation was conducted in Madang in November 2025, bringing together representatives from Government departments, provincial governments, statutory authorities, private sector and other relevant stakeholders to consider the draft negotiating texts submitted by the United Arab Emirates. Over 100 participants attended the workshop.

Since then, extensive consultations have continued across all Technical Working Groups to ensure Papua New Guinea’s negotiating positions reflect national priorities, sectoral interests and existing Government policies.

The National Trade Office is now coordinating a nationwide consultation to have specific views from the private sector and other stakeholders. Consultations will take place on the following dates and venues as indicated.

All stakeholders and interested parties are invited to contact the team to register for a meeting and express their views.

Invitations have been sent to all relevant stakeholders to provide their comments, views and technical inputs. All submissions received will be considered in determining PNG’s negotiating positions and will be treated as confidential.

Stakeholders who wish to provide comments or additional inputs, or require further information, are encouraged to contact the following officials. Appointments can also be arranged through the officials listed below.

For comments, inputs or appointments, please contact:

1. Mr Timon Wasupin | Ph: 7160 1676 | Email: twasupin@nto.gov.pg

2. Ms Simone Ila | Ph: 7718 4180 | Email: sila@nto.gov.pg

3. Ms Renay Loke | Ph: 7700 7150 | Email: rloke@nto.gov.pg

4. Mr Norman Nengi | Ph: 7718 4187 | Email: nnengi@nto.gov.pg

We are also seeking general views and comments from all stakeholders. Stakeholders who wish to provide their comments, views or additional inputs are encouraged to submit them via this email address: cepa@nto.gov.pg

 

Authorized by:

Richard Yakam

Chief Trade Officer & Chief Negotiator

National Trade Office