Updated August 2, 2023
U.S.–Papua New Guinea Relations: Issues for Congress
Overview
seats and governs in coalition with the United Resource
The Independent State of Papua New Guinea (PNG) lies in
Party, the National Alliance Party, and others.
a region of the southwest Pacific known as Melanesia on
the eastern side of the island of New Guinea. It is the most
Economy
populous Pacific Island country (PIC), with about 9.8
PNG is richly endowed with natural resources, including
million residents belonging to hundreds of tribes. In 1975,
precious metals, natural gas, timber, and fisheries. The
PNG gained independence from an Australian-administered
Economist Intelligence Unit projects that PNG’s real gross
United Nations trusteeship and became a member of the
domestic product growth will accelerate from 3.4% in 2023
Commonwealth. Parts of PNG had experienced periods of
to 3.9% in 2024. PNG’s largest trading partners are China,
German and British rule beginning in 1884 and Australian
Japan, and Australia. U.S.-PNG goods trade totaled $190.3
administration since 1906. The country shares a land border
million in 2022, and the United States had a $42.1 million
with the restive Indonesian province of Papua and is a
trade surplus. ExxonMobil signed a February 2022 deal to
member of regional organizations such as the Pacific
develop the P’nyang gas field in Western Province, which
Islands Forum and the Melanesian Spearhead Group. In
feeds Exxon’s existing liquefied natural gas plant in PNG.
May 2023, U.S. Secretary of State Antony Blinken
committed to working with Congress for over $7.2 billion
Figure 1. Papua New Guinea
in new funding for U.S. engagement in the Pacific Islands
region.
One of three PICs that have military forces (the other two
are Fiji and Tonga), PNG has at times been seen as
strategically important to the United States. During World
War II, 7,000 American soldiers and airmen died in the
New Guinea campaign, and the nearby Battle of the Coral
Sea was considered a turning point of the conflict. Since
1945, the United States has played a relatively minor role in
PNG’s economy and security, although the United States
has on occasion pursued economic opportunities such as
investment in natural gas production. Since around 2018,
U.S. engagement with PNG has expanded, driven in part by
U.S. perceptions that influence of China is increasing, both
in PNG and the Pacific Islands region.
The United States established diplomatic relations with
PNG in 1975. The State Department describes PNG as a
“likeminded democracy” and a “key partner for the United
States in the Indo-Pacific region.” In May 2023, the two
countries signed a defense cooperation agreement (DCA)
and an Agreement Concerning Counter Illicit Transnational
Maritime Activity Operations.
Politics
PNG is a parliamentary democracy. Although its
constitution promises free and fair elections, election-

related violence and violations of secret balloting have
Sources: CRS (map); World Bank; CIA, World Factbook.
routinely compromised this principle, according to the State
Department. James Marape, the current head of
Despite its resources, PNG ranks 156th out of 187 countries
government, became prime minister in 2019. Marape
on the U.N. Development Program’s Human Development
played a key role in parliamentary maneuverings that
Index, which measures per capita gross national income,
prompted the resignation of the previous prime minister,
Peter O’Neill. Marape
life expectancy, and educational attainment. According to
defeated O’Neill’s chosen successor
the U.N. Children’s Fund, 40% of the population in 2022
in a subsequent leadership vote and went on to win re-
election in PNG’s Ju
lived below the National Poverty Line, and the country’s
ne 2022 general election. Marape leads
health care system is fragile. PNG also has one the greatest
the Pangu Party, which has a plurality of parliamentary
HIV/AIDS prevalences in the Indo-Pacific. Obstacles to
https://crsreports.congress.gov

U.S.–Papua New Guinea Relations: Issues for Congress
PNG’s development include poor infrastructure, lack of
Partnership” in 2018. Former Prime Minister O’Neill
government capacity, inadequate supply of skilled workers,
reportedly met with Chinese leader Xi Jinping more than a
and unstable commodity prices.
dozen times and was the first Pacific leader to sign on to
China’s Belt and Road Initiative in 2018. According to the
U.S.-PNG Relations
Lowy Institute, China’s aid and investment in PNG include
The 2023 U.S.-PNG DCA allows the U.S. military to
construction, infrastructure, mining, industrial zones, and
develop and operate out of bases in PNG with the PNG
telecommunications projects worth $1.6 billion, including
government’s approval. This enables the United States to
$1.4 billion in loans since 2008. China’s largest ongoing
more swiftly respond to emergency situations, including
investment project is the Ramu nickel and cobalt mine.
disaster relief. Launched the same day as the DCA, the
Agreement Concerning Counter Illicit Transnational
Some analysts say PNG’s indebtedness to China may give
Maritime Activity Operations addresses gaps in PNG’s
Beijing political leverage in PNG and greater influence in
maritime governance capacity, including by allowing the
the region. Other observers suggest that Prime Minister
island nation to participate in the U.S. Coast Guard’s
Marape has sought to balance relations with China on the
Shiprider program. The United States has Shiprider
one hand and the United States and its allies in the region
agreements with approximately one dozen PICs, allowing
(particularly Australia) on the other. Marape has reportedly
their law enforcement officers to embark on U.S. naval and
stated, “We engage the Chinese government as long as it’s
Coast Guard ships in order to search vessels suspected of
fair and friendly to us on our terms.”
violating laws and to combat illicit fishing.
Climate Change and the Environment
In 2022, the State Department announced a 10-year
Coastal communities in PNG face rising sea levels and
strategic plan for PNG as part of a nine-nation U.S. Strategy
coastal erosion related to climate change. PNG is
to Prevent Conflict and Promote Stability. The PNG
environmentally biodiverse, with habitats as varied as
strategic plan focuses on strengthening community capacity
tropical heaths and grasslands, cloud forests, savannas,
to prevent, mitigate, and respond to violence; supporting
swamp forests, and diverse marine environments. It also has
sustainable and equitable economic growth; improving
glaciers and mountains over 4,500 meters high, as well as
justice systems; and professionalizing security forces.
numerous rare species. USAID has worked with PNG to
protect its rich biodiversity, which is under threat from
U.S. assistance to PNG includes efforts to combat
mining, logging, and land clearing for palm oil plantations.
infectious diseases including HIV/AIDS, enhance law
In 2022, USAID announced an $18.5 million effort to
enforcement capacity, and expand renewable energy. In
conserve PNG’s forests and combat climate change.
May 2023, the U.S. government announced $45 million in
new funding to PNG for various programs, including efforts
Bougainville Autonomy
related to conflict mitigation, anti-corruption, support for
Between 1988 and 1997, an armed secessionist movement
the PNG Defense Force, and climate resiliency. The United
on the island province of Bougainville, located in eastern
States also supports PNG’s disaster preparedness and
PNG, battled the PNG Defense Force, resulting in 15,000-
response capabilities. The U.S. Agency for International
20,000 deaths. In 1997, the PNG government and
Development (USAID), in partnership with Australia,
Bougainville leaders brokered a cease-fire and, in 1998,
Japan, and New Zealand, is carrying out a five-year (2020-
signed a peace agreement. Australia led a multinational
2025) Papua New Guinea Electrification Partnership that
Peace Monitoring Group. In 2001, the PNG government
aims to increase access to electricity to 70% of PNG’s
and Bougainville leaders agreed to establish the
population by 2030. About 20% of PNG nationals had
Autonomous Bougainville Government in 2005.
access to electricity in 2020.
Bougainvilleans voted in favor of independence in a 2019
referendum. The PNG parliament is set to vote in 2023 on
According to the Sydney-based Lowy Institute, Australia,
whether to approve independence for Bougainville.
Japan, and New Zealand are the top three aid grantors to
PNG, while the Asian Development Bank, International
Issues for Congress
Monetary Fund, and Japan are the top three lenders. A
Members of the 118th Congress may consider oversight
January 2022 report stated that Australia will provide a
questions related to PNG. These include how the U.S.-PNG
$580 million loan and grant package for upgrades and
DCA supports the Indo-Pacific Strategy and U.S. military
refurbishment of several priority ports in PNG, including on
force posture and planning in the region, how U.S. allies
Manus Island north of the PNG mainland. The United
and partners in the Indo-Pacific have responded to the
States first established a base on Manus Island during
agreement, how U.S. policy toward PNG fits into overall
World War II. Some observers view Australia’s assistance
Pacific Islands policy as outlined in the 2022 U.S. Pacific
in part as an effort to counter China’s influence in PNG and
Partnership Strategy, and how U.S. assistance may support
the region. They describe the move to develop Lombrum
economic and political development in PNG and counter
Naval Base on Manus Island, initiated in 2018, as seeking
China’s influence.
to head off Beijing’s interest in the island for potential
military use.
Joseph O. Yinusa, Research Assistant
China and PNG
Thomas Lum, Specialist in Asian Affairs
China is PNG’s largest trade and investment partner, and
IF11255
the two countries established a “Comprehensive Strategic
https://crsreports.congress.gov

U.S.–Papua New Guinea Relations: Issues for Congress


Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF11255 · VERSION 6 · UPDATED