Updated January 22, 2024
U.S.–Papua New Guinea Relations: Issues for Congress
Overview
what they perceived as pay cuts, which the government
The Independent State of Papua New Guinea (PNG) lies in
denied and blamed on a “technical glitch.” Spurred by the
a region of the southwest Pacific known as Melanesia on
temporary absence of law enforcement, violence broke out
the eastern side of the island of New Guinea. It is the most
in Port Moresby and the second largest city of Lae, which
populous Pacific Island country (PIC), with about 9.8
experienced widespread looting and property destruction.
million residents belonging to hundreds of tribes. In 1975,
News reports say 22 people died in the violence, and
PNG gained independence from an Australian-administered
Marape ordered a 14-day state of emergency to allow
United Nations trusteeship and became a member of the
security forces to restore order. According to the United
Commonwealth. Parts of PNG had experienced periods of
Nations International Children’s Emergency Fund, income
German and British rule beginning in 1884 and Australian
inequality in PNG is high, and 40% of the population in
administration since 1906. The country, which shares a land
2022 lived below the “extreme poverty line.”
border with the Indonesian province of Papua, is a member
Unemployment is high, particularly among the large youth
of regional organizations such as the Pacific Islands Forum
population. The political opposition blamed the rioting on
and the Melanesian Spearhead Group.
government mismanagement, unemployment, and inflation.
During World War II, 7,000 American soldiers and airmen
Figure 1. Papua New Guinea
died in the New Guinea campaign, and the nearby Battle of
the Coral Sea was considered a turning point of the U.S.
conflict with Japan. 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 China’s influence 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. PNG is one of three PICs
that have military forces (the other two are Fiji and Tonga).
Politics and Society
PNG is a parliamentary democracy. Although its
constitution promises free and fair elections, election-
related violence and violations of secret balloting have
routinely compromised this principle, according to the State
Department. James Marape, the current head of
government, became prime minister in 2019. Marape
played a key role in parliamentary maneuverings that

prompted the resignation of the previous prime minister,
Peter O’Neill. Marape
Sources: CRS (map); World Bank; CIA, World Factbook.
defeated O’Neill’s chosen successor
in a subsequent leadership vote and went on to win
Economy
reelection in PNG’s 2022 general election. Marape leads
PNG is richly endowed with natural resources, including
the Pangu Party, which has a plurality of parliamentary
precious metals, natural gas, timber, and fisheries. The
seats and governs in coalition with the United Resource
Economist Intelligence Unit projects that PNG’s real gross
Party, the National Alliance Party, and others.
domestic product growth will accelerate from 3.4% in 2023
to 3.9% in 2024. PNG’s largest trading partners are China,
On January 10, 2024, police and other public servants
Japan, and Australia. U.S.-PNG goods trade totaled $190.3
staged a protest strike in the capital of Port Moresby over
million in 2022, and the United States had a $42.1 million
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U.S.–Papua New Guinea Relations: Issues for Congress
trade surplus. ExxonMobil signed a February 2022 deal to
develop Lombrum Naval Base on Manus Island, initiated in
develop the P’nyang gas field in Western Province, which
2018, as seeking to head off Beijing’s interest in the island
feeds Exxon’s existing liquefied natural gas plant in PNG.
for potential military use.
China and PNG
Despite its resources, PNG ranks 156th out of 187 countries
on the U.N. Development Program’s Human Development
China is PNG’s largest trade and investment partner, and
Index, which measures per capita gross national income,
the two countries established a “Comprehensive Strategic
life expectancy, and educational attainment. PNG also has
Partnership” in 2018. Former Prime Minister O’Neill
one the highest levels of HIV/AIDS in the Indo-Pacific.
reportedly met with Chinese leader Xi Jinping more than a
Obstacles to PNG’s development include poor
dozen times and was the first Pacific leader to sign on to
China’s Belt and Road Initiative
infrastructure, lack of government capacity, inadequate
in 2018. According to the
Lowy Institute, China’s aid and investment in PNG include
supply of skilled workers, and unstable commodity prices.
construction, infrastructure, mining, industrial zones, and
U.S.-PNG Relations
telecommunications projects worth $1.6 billion, including
The 2023 U.S.-PNG DCA allows the U.S. military to
$1.4 billion in loans, since 2008. China’s largest ongoing
develop and operate out of bases in PNG with the PNG
investment project is the Ramu nickel and cobalt mine.
government’s approval. The State Department asserts the
Some analysts say PNG’s indebtedness to China may give
DCA will enhance security cooperation, improve the
Beijing political leverage in PNG and greater influence in
capacity of the PNG Defense Force, and facilitate bilateral
the region. Other observers suggest that Prime Minister
and multilateral exercises and engagements, including
Marape has sought to balance relations with China on the
disaster relief efforts. Launched the same day as the DCA,
one hand and the United States and its allies in the region
the Agreement Concerning Counter Illicit Transnational
(particularly Australia) on the other. Marape has reportedly
Maritime Activity Operations addresses gaps in PNG’s
stated, “We engage the Chinese government as long as it’s
maritime governance capacity. PNG also participates in the
fair and friendly to us on our terms.”
U.S. Coast Guard’s shiprider program, which allows PNG
law enforcement personnel to embark on U.S. naval and
Climate Change and the Environment
Coast Guard ships in order to search vessels suspected of
PNG is environmentally biodiverse, with habitats as varied
violating laws and to combat illicit fishing.
as tropical heaths and grasslands, cloud forests, savannas,
swamp forests, and diverse marine environments. It also has
In 2022, the State Department announced a 10-year
glaciers and mountains over 4,500 meters high, as well as
strategic plan for PNG as part of a nine-nation U.S. Strategy
numerous rare species. USAID has worked with PNG to
to Prevent Conflict and Promote Stability. The PNG
protect its rich biodiversity, which is under threat from
strategic plan focuses on strengthening community capacity
mining, logging, and land clearing for palm oil plantations.
to prevent, mitigate, and respond to violence; supporting
In 2022, USAID announced an $18.5 million effort to
sustainable and equitable economic growth; improving
conserve PNG’s forests and combat climate change, which,
justice systems; and professionalizing security forces.
along with rising sea levels, threatens coastal communities.
Bougainville Autonomy
U.S. assistance to PNG includes efforts to combat
Between 1988 and 1997, an armed secessionist movement
infectious diseases including HIV/AIDS, enhance law
on the island province of Bougainville, located in eastern
enforcement capacity, and expand renewable energy. In
PNG, battled the PNG Defense Force, resulting in 15,000-
May 2023, the U.S. government announced $45 million in
20,000 deaths. In 1997, the PNG government and
new funding to PNG for various programs, including efforts
Bougainville leaders brokered a cease-fire and, in 2001,
related to conflict mitigation, anti-corruption, and climate
signed a peace agreement. The Autonomous Bougainville
resiliency. The United States also supports PNG’s disaster
Government was formally established in 2005.
preparedness and response capabilities. The U.S. Agency
Bougainvilleans voted in favor of independence in a 2019
for International Development (USAID), in partnership
referendum. The terms of independence and whether the
with Australia, Japan, and New Zealand, is carrying out a
parliament will approve them are uncertain.
five-year (2020-2025) Papua New Guinea Electrification
Partnership that aims to increase access to electricity to
Issues for Congress
70% of PNG’s population by 2030. About 20% of PNG
Members of the 118th Congress may consider oversight of
nationals had access to electricity in 2020.
Biden Administration policies, including examining (1)
how the U.S.-PNG DCA supports the Indo-Pacific Strategy
According to the Sydney-based Lowy Institute, Australia,
and U.S. military force posture and planning in the region,
Japan, and New Zealand are the top three aid grantors to
(2) how U.S. allies and partners in the Indo-Pacific have
PNG, while the Asian Development Bank, International
responded to the agreement, (3) how U.S. policy toward
Monetary Fund, and Japan are the top three lenders. A
PNG fits into overall Pacific Islands policy as outlined in
January 2022 report stated that Australia would help
the 2022 U.S. Pacific Partnership Strategy, and (4) how
finance upgrades and refurbishment of several priority ports
U.S. assistance may support economic and political
in PNG, including on Manus Island north of the PNG
development in PNG and Bougainville and counter China’s
mainland. The United States first established a base on
influence.
Manus Island during World War II. Some observers view
Australia’s assistance in part as an effort to counter China’s
Thomas Lum, Specialist in Asian Affairs
influence in PNG and the region. They describe the move to
IF11255
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U.S.–Papua New Guinea Relations: Issues for Congress


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https://crsreports.congress.gov | IF11255 · VERSION 10 · UPDATED