

Updated October 5, 2023
U.S.–Papua New Guinea Relations: Issues for Congress
Overview
Economy
The Independent State of Papua New Guinea (PNG) lies in
PNG is richly endowed with natural resources, including
a region of the southwest Pacific known as Melanesia on
precious metals, natural gas, timber, and fisheries. The
the eastern side of the island of New Guinea. It is the most
Economist Intelligence Unit projects that PNG’s real gross
populous Pacific Island country (PIC), with about 9.8
domestic product growth will accelerate from 3.4% in 2023
million residents belonging to hundreds of tribes. In 1975,
to 3.9% in 2024. PNG’s largest trading partners are China,
PNG gained independence from an Australian-administered
Japan, and Australia. U.S.-PNG goods trade totaled $190.3
United Nations trusteeship and became a member of the
million in 2022, and the United States had a $42.1 million
Commonwealth. Parts of PNG had experienced periods of
trade surplus. ExxonMobil signed a February 2022 deal to
German and British rule beginning in 1884 and Australian
develop the P’nyang gas field in Western Province, which
administration since 1906. The country, which shares a land
feeds Exxon’s existing liquefied natural gas plant in PNG.
border with the Indonesian province of Papua, is a member
of regional organizations such as the Pacific Islands Forum
Figure 1. Papua New Guinea
and the Melanesian Spearhead Group.
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. The DCA aims to “increase
stability and security in the region,” according to the State
Department.
Politics
PNG is a parliamentary democracy. Although its
constitution promises free and fair elections, election-
Sources: CRS (map); World Bank; CIA, World Factbook.
related violence and violations of secret balloting have
routinely compromised this principle, according to the State
Despite its resources, PNG ranks 156th out of 187 countries
Department. James Marape, the current head of
on the U.N. Development Program’s Human Development
government, became prime minister in 2019. Marape
Index, which measures per capita gross national income,
played a key role in parliamentary maneuverings that
life expectancy, and educational attainment. According to
prompted the resignation of the previous prime minister,
the U.N. Children’s Fund, 40% of the population in 2022
Peter O’Neill. Marape defeated O’Neill’s chosen successor
lived below the National Poverty Line, and the country’s
in a subsequent leadership vote and went on to win re-
election in PNG’s 2022 general election
health care system is fragile. PNG also has one the highest
. Marape leads the
HIV/AIDS prevalences in the Indo-Pacific. Obstacles to
Pangu Party, which has a plurality of parliamentary seats
PNG’s development include poor infrastructure, lack of
and governs in coalition with the United Resource Party,
government capacity, inadequate supply of skilled workers,
the National Alliance Party, and others.
and unstable commodity prices.
https://crsreports.congress.gov
U.S.–Papua New Guinea Relations: Issues for Congress
U.S.-PNG Relations
reportedly met with Chinese leader Xi Jinping more than a
The 2023 U.S.-PNG DCA allows the U.S. military to
dozen times and was the first Pacific leader to sign on to
develop and operate out of bases in PNG with the PNG
China’s Belt and Road Initiative in 2018. According to the
government’s approval. The State Department asserts the
Lowy Institute, China’s aid and investment in PNG include
DCA will enhance security cooperation, improve the
construction, infrastructure, mining, industrial zones, and
capacity of the PNG Defense Force, and facilitate bilateral
telecommunications projects worth $1.6 billion, including
and multilateral exercises and engagements, including
$1.4 billion in loans since 2008. China’s largest ongoing
disaster relief efforts. Launched the same day as the DCA,
investment project is the Ramu nickel and cobalt mine.
the Agreement Concerning Counter Illicit Transnational
Maritime Activity Operations addresses gaps in PNG’s
Some analysts say PNG’s indebtedness to China may give
maritime governance capacity, including by allowing the
Beijing political leverage in PNG and greater influence in
island nation to participate in the U.S. Coast Guard’s
the region. Other observers suggest that Prime Minister
Shiprider program. The United States has Shiprider
Marape has sought to balance relations with China on the
agreements with approximately one dozen PICs, allowing
one hand and the United States and its allies in the region
their law enforcement officers to embark on U.S. naval and
(particularly Australia) on the other. Marape has reportedly
Coast Guard ships in order to search vessels suspected of
stated, “We engage the Chinese government as long as it’s
violating laws and to combat illicit fishing.
fair and friendly to us on our terms.”
In 2022, the State Department announced a 10-year
Climate Change and the Environment
strategic plan for PNG as part of a nine-nation U.S. Strategy
Coastal communities in PNG face rising sea levels and
to Prevent Conflict and Promote Stability. The PNG
coastal erosion related to climate change. PNG is
strategic plan focuses on strengthening community capacity
environmentally biodiverse, with habitats as varied as
to prevent, mitigate, and respond to violence; supporting
tropical heaths and grasslands, cloud forests, savannas,
sustainable and equitable economic growth; improving
swamp forests, and diverse marine environments. It also has
justice systems; and professionalizing security forces.
glaciers and mountains over 4,500 meters high, as well as
numerous rare species. USAID has worked with PNG to
U.S. assistance to PNG includes efforts to combat
protect its rich biodiversity, which is under threat from
infectious diseases including HIV/AIDS, enhance law
mining, logging, and land clearing for palm oil plantations.
enforcement capacity, and expand renewable energy. In
In 2022, USAID announced an $18.5 million effort to
May 2023, the U.S. government announced $45 million in
conserve PNG’s forests and combat climate change.
new funding to PNG for various programs, including efforts
related to conflict mitigation, anti-corruption, and climate
Bougainville Autonomy
resiliency. The United States also supports PNG’s disaster
Between 1988 and 1997, an armed secessionist movement
preparedness and response capabilities. The U.S. Agency
on the island province of Bougainville, located in eastern
for International Development (USAID), in partnership
PNG, battled the PNG Defense Force, resulting in 15,000-
with Australia, Japan, and New Zealand, is carrying out a
20,000 deaths. In 1997, the PNG government and
five-year (2020-2025) Papua New Guinea Electrification
Bougainville leaders brokered a cease-fire and, in 2001,
Partnership that aims to increase access to electricity to
signed a peace agreement. Australia led a multinational
70% of PNG’s population by 2030. About 20% of PNG
Peace Monitoring Group. The Autonomous Bougainville
nationals had access to electricity in 2020.
Government was formally established in 2005.
Bougainvilleans voted in favor of independence in a 2019
According to the Sydney-based Lowy Institute, Australia,
referendum. The PNG parliament is set to vote in 2023 on
Japan, and New Zealand are the top three aid grantors to
whether to approve independence for Bougainville.
PNG, while the Asian Development Bank, International
Monetary Fund, and Japan are the top three lenders. A
Issues for Congress
January 2022 report stated that Australia will provide a
Members of the 118th Congress may consider oversight
$580 million loan and grant package for upgrades and
questions related to PNG. These include how the U.S.-PNG
refurbishment of several priority ports in PNG, including on
DCA supports the Indo-Pacific Strategy and U.S. military
Manus Island north of the PNG mainland. The United
force posture and planning in the region, how U.S. allies
States first established a base on Manus Island during
and partners in the Indo-Pacific have responded to the
World War II. Some observers view Australia’s assistance
agreement, how U.S. policy toward PNG fits into overall
in part as an effort to counter China’s influence in PNG and
Pacific Islands policy as outlined in the 2022 U.S. Pacific
the region. They describe the move to develop Lombrum
Partnership Strategy, and how U.S. assistance may support
Naval Base on Manus Island, initiated in 2018, as seeking
economic and political development in PNG and counter
to head off Beijing’s interest in the island for potential
China’s influence.
military use.
China and PNG
Joseph O. Yinusa, Research Assistant
Thomas Lum, Specialist in Asian Affairs
China is PNG’s largest trade and investment partner, and
the two countries established a “Comprehensive Strategic
IF11255
Partnership” in 2018. Former Prime Minister O’Neill
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 8 · UPDATED