EU Relations with Papua New Guinea

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Papua New GuineaPapua New Guinea

Papua New Guinea (PNG) is located in the eastern half of New Guinea island, north of Australia. The total population is around 6 million. Spread across mountainous and tropical terrain, it constitutes one of the most ethnically diverse nations in the world with around 800 languages spoken.

Most locals still live in traditional subsistence societies, and the country faces a number of poverty-related development challenges. The main ones are rural development to decrease the urban–rural gap, and sustainable management of natural resources PNG faces a threat that uncontrolled exploitation of its rich natural resources results in irrevocable environmental damage. This applies especially to the forestry and fisheries sectors

Key issues in EU-Papua New Guinea relations

The EU is strengthening relations with its Pacific partners, and as one of the largest regional countries, PNG is at the forefront of this drive. It was, with Fiji, the first to sign an Interim Partnership Agreement in 2007 which liberalises trade with the EU and improves market access for PNG exports.

Development cooperation is also being strengthened, including closer coordination with the government and PNG’s main donor, Australia. The EU’s development partnership has focused on poverty reduction, especially human development and rural and environmental development. The latest EU development programme (2008–13) continues the focus on these fields, with a total EU budget of € 142.3 M.

The new programme balances the demand for better services and more income generation. The focus on rural economic development aims to improve rural livelihoods. Activities will include support for district development plans, investment (especially in infrastructure and communications) and innovative income generation activities. The objective of the support to human resource development is to improve the basic education services in remote regions, including teacher training, vocational education, and support to improve the management of the education system. The EU is also committed to help the country to manage its natural resources in a responsible manner.