Maru warns against proposed rice policy

Trade, Commerce and Industry Minister Richard Maru cautioned the National Government that the proposed rice policy could have drastic consequences for Papua New Guinea.

He was responding to questions from Rabaul MP Allan Marat in the morning session of Parliament.

Marat asked if a policy, which will give a single company monopoly, will strain ties with Australia.

PNG imports K700 million of rice annually, and Australian company Trukai is the major importer.

Minister Maru, in response, said he had already sought advice from WTO in-country and legal advice from the State Solicitor’s Office.

"Such a policy will be in serious breach of our obligation as a member of the World Trade Organization," Maru warned.

"It is also likely to be illegal because we have an Investment Protection and Promotion Agreement with Australia, it’s a bilateral agreement signed to protect Australian (companies) investments in the country.

"We will pay compensation to an investor in the country, so that is another down side of such policy."

But the Trade Minister said there are other options the National Government could take, such as tax-free tariff protection to safeguard companies investing in the country. 

Maru concluded that a formal letter of advice will be given to the Prime Minister once all recommendations are compiled.

Author: 
Charles Yapumi