PM Somare China-Pacific development
PM Somare China-Pacific development 5Apr06
17 Apr 2006 19:23:14 SPEECH BY PRIME MINISTER OF PAPUA NEW GUINEA
AND CHAIR OF THE PACIFIC ISLANDS FORUM
RT HON GRAND CHIEF, SIR MICHAEL SOMARE, GCL, GCMG, CH, CF, KStJ
ON THE OCCASION OF THE
CHINA ,PACIFIC ISLAND COUNTRIES ECONOMIC COOPERATION DEVELOPMENT FORUM
5-6 APRIL 2006
Sofitel, NADI, FIJI
1. Your Excellency Premier Wen Jiabao, Pacific Leaders and Heads of Delegation, distinguished guests, ladies and gentlemen. Welcome to the inaugural meeting of the China ,Pacific Island Countries Economic Cooperation Development Forum.
2. May I first of all, as Chair of the Pacific Islands Forum, say how deeply honoured we are by the presence of Premier Wen Jiabao for this important meeting. Your participation this morning, Your Excellency, is greatly appreciated and reinforces the high value that China places on its good relations with the Pacific region. Our Leaders here today have signaled a desire to see that our partnership grows even stronger into the future.
3. China has a long and proud history in our region and the contribution of Chinese communities in the development of Pacific Island countries has been immense. These communities are integrated into the social and economic fabric of our societies and we value their commitment to the future of our islands.
4. Your Excellency, China is obviously an Asian power, but it is also a Pacific power, and we welcome the interest that you and your government have in the concerns of island states. Part of this lies in the fact that China is also a developing country, with similar development challenges although on a far bigger scale. There is much we can learn from one another, and we look forward to sharing our experiences and to also increase our trade and investment, and people exchanges.
5. I am confident that our meeting will further strengthen trade and economic cooperation relations between China and the region, especially in the context of the Pacific Plan endorsed by Pacific Islands Forum Leaders in October 2005 in Port Moresby, Papua New Guinea.
6. I wish to say a few words about the Pacific Plan which aims to strengthen regional cooperation and integration. Our Leaders have recognised that the Pacific is in a new era which requires fresh approaches to some of the challenges we face. The Pacific Plan outlines a range of initiatives under the four goals of economic growth, sustainable development, good governance and security. The Pacific Plan is based on the belief that regional approaches may be a better option in many cases where our members seek to advance their national priorities. The work of regional organisations will continue to be based on delivery of services, and not the policymaking itself which remains a responsibility of the member states. This delegation of services, to regional mechanisms such as the Forum, means the member states can focus on key priorities rather than spending scarce resources on costly, duplicated services.
7. The Pacific Plan has the potential to serve as a framework for activity by development partners such as China, and we will continue to consult with your government and the rest of our partners on ways in which your assistance might usefully follow the aims of the Plan. We also wish to hear from our development partners on ways to ensure better ownership of development interventions, and how best to align them with national and regional priorities.
8. China is a Forum Dialogue Partner and it maintains an extensive bilateral and multilateral programme in the region. At the 2005 Post Forum Dialogues in October in Papua New Guinea, China pledged an additional sum to the China-PIF Cooperation Fund, in support of projects under the Pacific Plan over the next five years, to the value of USD $2 million. This is in addition to other support provided by China for a range of Forum-related activities including its welcome support for the Pacific Islands Forum Trade Office in Beijing. For this, our region is truly grateful.
9. This week we are considering an initiative to establish a high-level consultation to enhance economic and trade cooperation between China and Pacific Island Countries. This will assist the region to develop a structured relationship that carries a number of potential benefits, while respecting and supporting current and future bilateral commitments and initiatives.
10. Economic cooperation between China and the Forum Island Countries has grown tremendously over the last four years as a result of concerted efforts to deepen understanding, heighten exchanges and broaden cooperation from both Governments and private sectors, of the two regions.
TRADE
11. Total trade between China and the Forum Island Countries totalled USD288 million by December 2002, which grew to USD500 million by December 2003, highlighting a growth factor of some 74%. he leading island states that contributed to trade volume in 2002 included Papua New Guinea, Fiji, the Solomon Islands, and the Republic of the Marshall Islands.
12. In 2002, Papua New Guinea demonstrated strong export performance to China with a trade surplus of USD132 million which was boosted by exports of timber, natural gas, and metals. In the same year, the Solomon Islands also registered a trade surplus of USD17.15 million which was boosted by timber and fishery products to China.
13. In 2003, total reciprocal trade volume between China and the 14 Forum Island Countries reached USD500 million, demonstrating a 74% icrease in import and exports between the two regions. A notable performance was demonstrated by Papua New Guinea with a trade surplus of USD100.3 million by August 2003.
14. In 2004, total reciprocal trade between China and the Forum Island Countries reached USD629 million, in favour of China, as more and more island states began sourcing imports from China, overtaking island exports to China.
15. In 2005, total reciprocal trade between China and Oceania (including Australia and New Zealand) reached nearly USD31 billion, with increases of 35% i exports to China; and 26.7% i exports to Oceania. The total reciprocal trade between China and the smaller 14 FICs surpassed the USD850 million mark, beating analyst targets of USD786.25 million.
16. It is estimated that total reciprocal trade between China and the 14 FICs will exceed USD1 billion by December 2006, in favour of exports from China to the Pacific Islands. The proposed China-Pacific Island Countries Economic Cooperation and Development Guiding Framework, to which I will refer shortly, will provide the impetus to boost greater trade between the two regions, with an emphasis on stronger export performance from the Forum Island Countries to China. This will be via the implementation of new bilateral agreements and corresponding trade facilitation measures designed to fast-track the export process from Pacific Island states to China.
INVESTMENTS
17. Over the last four years, Chinese investments into the Pacific Islands have been driven by State-Owned Corporations in search of commodities to feed China's growing domestic consumption. Total Chinese investment into the Pacific Islands was estimated at USD113 million in 2004; increasing to USD135.6 million in 2005. It is expected to reach USD176.3 million by December 2006 as a result of greater exchanges by Governments and private sectors of the two regions.
18. Investments by Chinese State-Owned Corporations will continue to dominate the investment sources; however, a growing number of Chinese small and medium sized enterprises are expected to invest in the Forum Island Countries as the business relationship grows and this is a most welcome development.
TOURISM
19. Tourism has grown steadily over the last four years with China departures estimated at 35,000 in 2004, of which 78% taveled to Fiji. The China National Tourism Administration confirmed Approved Destination Status in 2004 and 2005 for four Pacific states, the Cook Islands, Fiji, Tonga and Vanuatu, with additional approvals announced this year for French Polynesia and New Caledonia.
20. China departures to the 14 smaller FICs are expected to grow by 15% pr year to reach an estimated 46,000 by December 2006. Tourism industry exchanges by Government and private sectors of the two regions are expected to expand throughout 2006 and 2007 which should result in more Forum Island Countries receiving Approved Destination Status, which will provide a positive net impact on China departures to the Pacific islands region.
21. These activities provide a valuable foundation for the work we will be conducting at this meeting here in Nadi.
22. We will shortly be signing the China-Pacific Island Countries Economic Development and Cooperation Guiding Framework. That document marks an historic milestone in the further strengthening of relations between the People's Republic of China and countries of this region. While this is not an international treaty, the Guiding Framework embodies the firm commitment of all signatories to establish a partnership of economic and trade cooperation between them, for their mutual benefit and based on a number of fundamental principles.
23. In working to establish that partnership, the Pacific Island Countries are pleased that China recognises their unique characteristics, especially their small economies. For the partnership to develop and flourish in the years ahead, it will be necessary for that reality to be reflected in all aspects of the relationship between China and the region.
24. As the Guiding Framework clearly illustrates, and as I indicated earlier, there are many areas in which cooperation can be strengthened between China and countries of this region at both the national and regional levels. Pacific Island Countries have been working to strengthen regional economic integration and this is reflected as a key element of the Pacific Plan. Indeed, the Pacific Island Countries see opportunities for co-operation between the two sides to promote regional economic integration with a view to better enabling them to strengthen their own economic and trade relations with China.
25. Pacific Island Countries recognise the potential for the continued strengthening of investment and commercial relations between themselves and China and, towards that end, the importance of establishing a legal framework conducive to investment promotion and protection as highlighted in the Guiding Framework. This is another area to which attention might be given in the months ahead in line with a work programme agreed between our two sides.
26. The Guiding Framework also highlights, quite rightly, a number of key sectors where co-operation can take place. These include agriculture and fisheries, tourism and transportation, financial services, engineering and infrastructure, the sustainable development of natural resources and the development of human resources. All of us gathered here today can quickly think of areas where fruitful cooperation can take place in each sector and our ministers will be exploring some of those possibilities later today.
27. In sum, the Guiding Framework offers exciting prospects for Pacific Island Countries and their future relations with China. However, for those prospects to be realised and the Guiding Framework to truly serve its intended purpose, there must be an effective, regular dialogue established between our two sides at the official level.
28. Through such a dialogue, a well-designed work programme could be formulated and implemented over the months ahead so that when our Ministers next gather in Beijing to review activities undertaken in line with the Guiding Framework they will be able to witness concrete progress in furthering the objectives of that Framework.
29. Given our past history of growing cooperation, I am sure that we will find a way forward that meets our mutual expectations. Thank you.
17 Apr 2006 19:23:14 SPEECH BY PRIME MINISTER OF PAPUA NEW GUINEA
AND CHAIR OF THE PACIFIC ISLANDS FORUM
RT HON GRAND CHIEF, SIR MICHAEL SOMARE, GCL, GCMG, CH, CF, KStJ
ON THE OCCASION OF THE
CHINA ,PACIFIC ISLAND COUNTRIES ECONOMIC COOPERATION DEVELOPMENT FORUM
5-6 APRIL 2006
Sofitel, NADI, FIJI
1. Your Excellency Premier Wen Jiabao, Pacific Leaders and Heads of Delegation, distinguished guests, ladies and gentlemen. Welcome to the inaugural meeting of the China ,Pacific Island Countries Economic Cooperation Development Forum.
2. May I first of all, as Chair of the Pacific Islands Forum, say how deeply honoured we are by the presence of Premier Wen Jiabao for this important meeting. Your participation this morning, Your Excellency, is greatly appreciated and reinforces the high value that China places on its good relations with the Pacific region. Our Leaders here today have signaled a desire to see that our partnership grows even stronger into the future.
3. China has a long and proud history in our region and the contribution of Chinese communities in the development of Pacific Island countries has been immense. These communities are integrated into the social and economic fabric of our societies and we value their commitment to the future of our islands.
4. Your Excellency, China is obviously an Asian power, but it is also a Pacific power, and we welcome the interest that you and your government have in the concerns of island states. Part of this lies in the fact that China is also a developing country, with similar development challenges although on a far bigger scale. There is much we can learn from one another, and we look forward to sharing our experiences and to also increase our trade and investment, and people exchanges.
5. I am confident that our meeting will further strengthen trade and economic cooperation relations between China and the region, especially in the context of the Pacific Plan endorsed by Pacific Islands Forum Leaders in October 2005 in Port Moresby, Papua New Guinea.
6. I wish to say a few words about the Pacific Plan which aims to strengthen regional cooperation and integration. Our Leaders have recognised that the Pacific is in a new era which requires fresh approaches to some of the challenges we face. The Pacific Plan outlines a range of initiatives under the four goals of economic growth, sustainable development, good governance and security. The Pacific Plan is based on the belief that regional approaches may be a better option in many cases where our members seek to advance their national priorities. The work of regional organisations will continue to be based on delivery of services, and not the policymaking itself which remains a responsibility of the member states. This delegation of services, to regional mechanisms such as the Forum, means the member states can focus on key priorities rather than spending scarce resources on costly, duplicated services.
7. The Pacific Plan has the potential to serve as a framework for activity by development partners such as China, and we will continue to consult with your government and the rest of our partners on ways in which your assistance might usefully follow the aims of the Plan. We also wish to hear from our development partners on ways to ensure better ownership of development interventions, and how best to align them with national and regional priorities.
8. China is a Forum Dialogue Partner and it maintains an extensive bilateral and multilateral programme in the region. At the 2005 Post Forum Dialogues in October in Papua New Guinea, China pledged an additional sum to the China-PIF Cooperation Fund, in support of projects under the Pacific Plan over the next five years, to the value of USD $2 million. This is in addition to other support provided by China for a range of Forum-related activities including its welcome support for the Pacific Islands Forum Trade Office in Beijing. For this, our region is truly grateful.
9. This week we are considering an initiative to establish a high-level consultation to enhance economic and trade cooperation between China and Pacific Island Countries. This will assist the region to develop a structured relationship that carries a number of potential benefits, while respecting and supporting current and future bilateral commitments and initiatives.
10. Economic cooperation between China and the Forum Island Countries has grown tremendously over the last four years as a result of concerted efforts to deepen understanding, heighten exchanges and broaden cooperation from both Governments and private sectors, of the two regions.
TRADE
11. Total trade between China and the Forum Island Countries totalled USD288 million by December 2002, which grew to USD500 million by December 2003, highlighting a growth factor of some 74%. he leading island states that contributed to trade volume in 2002 included Papua New Guinea, Fiji, the Solomon Islands, and the Republic of the Marshall Islands.
12. In 2002, Papua New Guinea demonstrated strong export performance to China with a trade surplus of USD132 million which was boosted by exports of timber, natural gas, and metals. In the same year, the Solomon Islands also registered a trade surplus of USD17.15 million which was boosted by timber and fishery products to China.
13. In 2003, total reciprocal trade volume between China and the 14 Forum Island Countries reached USD500 million, demonstrating a 74% icrease in import and exports between the two regions. A notable performance was demonstrated by Papua New Guinea with a trade surplus of USD100.3 million by August 2003.
14. In 2004, total reciprocal trade between China and the Forum Island Countries reached USD629 million, in favour of China, as more and more island states began sourcing imports from China, overtaking island exports to China.
15. In 2005, total reciprocal trade between China and Oceania (including Australia and New Zealand) reached nearly USD31 billion, with increases of 35% i exports to China; and 26.7% i exports to Oceania. The total reciprocal trade between China and the smaller 14 FICs surpassed the USD850 million mark, beating analyst targets of USD786.25 million.
16. It is estimated that total reciprocal trade between China and the 14 FICs will exceed USD1 billion by December 2006, in favour of exports from China to the Pacific Islands. The proposed China-Pacific Island Countries Economic Cooperation and Development Guiding Framework, to which I will refer shortly, will provide the impetus to boost greater trade between the two regions, with an emphasis on stronger export performance from the Forum Island Countries to China. This will be via the implementation of new bilateral agreements and corresponding trade facilitation measures designed to fast-track the export process from Pacific Island states to China.
INVESTMENTS
17. Over the last four years, Chinese investments into the Pacific Islands have been driven by State-Owned Corporations in search of commodities to feed China's growing domestic consumption. Total Chinese investment into the Pacific Islands was estimated at USD113 million in 2004; increasing to USD135.6 million in 2005. It is expected to reach USD176.3 million by December 2006 as a result of greater exchanges by Governments and private sectors of the two regions.
18. Investments by Chinese State-Owned Corporations will continue to dominate the investment sources; however, a growing number of Chinese small and medium sized enterprises are expected to invest in the Forum Island Countries as the business relationship grows and this is a most welcome development.
TOURISM
19. Tourism has grown steadily over the last four years with China departures estimated at 35,000 in 2004, of which 78% taveled to Fiji. The China National Tourism Administration confirmed Approved Destination Status in 2004 and 2005 for four Pacific states, the Cook Islands, Fiji, Tonga and Vanuatu, with additional approvals announced this year for French Polynesia and New Caledonia.
20. China departures to the 14 smaller FICs are expected to grow by 15% pr year to reach an estimated 46,000 by December 2006. Tourism industry exchanges by Government and private sectors of the two regions are expected to expand throughout 2006 and 2007 which should result in more Forum Island Countries receiving Approved Destination Status, which will provide a positive net impact on China departures to the Pacific islands region.
21. These activities provide a valuable foundation for the work we will be conducting at this meeting here in Nadi.
22. We will shortly be signing the China-Pacific Island Countries Economic Development and Cooperation Guiding Framework. That document marks an historic milestone in the further strengthening of relations between the People's Republic of China and countries of this region. While this is not an international treaty, the Guiding Framework embodies the firm commitment of all signatories to establish a partnership of economic and trade cooperation between them, for their mutual benefit and based on a number of fundamental principles.
23. In working to establish that partnership, the Pacific Island Countries are pleased that China recognises their unique characteristics, especially their small economies. For the partnership to develop and flourish in the years ahead, it will be necessary for that reality to be reflected in all aspects of the relationship between China and the region.
24. As the Guiding Framework clearly illustrates, and as I indicated earlier, there are many areas in which cooperation can be strengthened between China and countries of this region at both the national and regional levels. Pacific Island Countries have been working to strengthen regional economic integration and this is reflected as a key element of the Pacific Plan. Indeed, the Pacific Island Countries see opportunities for co-operation between the two sides to promote regional economic integration with a view to better enabling them to strengthen their own economic and trade relations with China.
25. Pacific Island Countries recognise the potential for the continued strengthening of investment and commercial relations between themselves and China and, towards that end, the importance of establishing a legal framework conducive to investment promotion and protection as highlighted in the Guiding Framework. This is another area to which attention might be given in the months ahead in line with a work programme agreed between our two sides.
26. The Guiding Framework also highlights, quite rightly, a number of key sectors where co-operation can take place. These include agriculture and fisheries, tourism and transportation, financial services, engineering and infrastructure, the sustainable development of natural resources and the development of human resources. All of us gathered here today can quickly think of areas where fruitful cooperation can take place in each sector and our ministers will be exploring some of those possibilities later today.
27. In sum, the Guiding Framework offers exciting prospects for Pacific Island Countries and their future relations with China. However, for those prospects to be realised and the Guiding Framework to truly serve its intended purpose, there must be an effective, regular dialogue established between our two sides at the official level.
28. Through such a dialogue, a well-designed work programme could be formulated and implemented over the months ahead so that when our Ministers next gather in Beijing to review activities undertaken in line with the Guiding Framework they will be able to witness concrete progress in furthering the objectives of that Framework.
29. Given our past history of growing cooperation, I am sure that we will find a way forward that meets our mutual expectations. Thank you.
