Investors willing to explore business opportunities in Papua New Guinea have available to them numerous incentives to assist in their investment decision-making.
The government has a range of direct and indirect taxation based incentives for large and small proposals.
The international treaties, agreements and pacts which give Papua New Guinea manufactured goods preferential access to various export markets, including duty free and reduced tariff entry to some of the largest markets in the world, for example the European Union (EU) under the Cotonou Agreement. The labour market has been deregulated, offering employers and employees the opportunity to ensure productivity and wages remain in step with one another.
Investment Protection and Guarantees
Foreign investment in Papua New Guinea is facilitated, regulated and monitored by the Investment Promotion Act.
Investment Promotion Act
Section 37 of the Act guarantees that the property of a foreign investor shall not be nationalized or expropriated except in accordance with law, for a public purpose defined by law and in payment of compensation as defined by law.
Multilateral Investment Guarantee Agency
The Multilateral Investment Guarantee Agency’s (MIGA) principle responsibility is promotion of investment for economic development in member countries through:
* guarantees to foreign investors against losses caused by non-commercial risks; and
* advisory and consultative services to member countries to assist them in creating a responsive investment climate and information base to guide and encourage flow of capital.
APEC and WTO
Papua New Guinea is a member of the Asia-Pacific Economic Cooperation (APEC) and the World Trade Organisation (WTO), and therefore party to a number of agreements and understandings. A lot of these matters relate to trade and investment liberalisation.
International Centre for Settlement of Investment Disputes
Section 39 of the Act seeks to encourage greater flows of international investment by providing facilities for the conciliation and arbitration of disputes between government and foreign investors.
Separate investment protection agreements have been entered into with several individual countries, notably Australia and Malaysia. The Department of Foreign Affairs has more information on bilateral and multilateral agreements which Papua New Guinea has entered into.