The Melanesian Spearhead Group (MSG) is embarking on a feasible study to operate its own shipping and airline services.
The Group says this will ensure greater connectivity within member countries which will result in more trade and economic activity.
Ways and means of having these services available is part of the 3rd MSG Trade Agreement that was been discussed by the Trade Ministers in Nadi last week.
Its an idea that is said to solve connectivity issues within the MSG member countries once and for all.
Papua New Guinea has been tasked to conduct a feasibility study to investigate the potential of having a MSG Shipping and airline services.
A report on the study is expected to be presented to the ministers by next year.
“Connectivity remains a challenge in our sub-region. government of independent state of PNG were asked by the leaders to do a feasibility study looking at the viability of establishing MSG shipping line and also MSG airline. so connectivity is critical,” Peni Sikivou, Director Trade- MSG Secretariat.
The MSG Trade ministers for over a week revised the legal texts of existing trade agreement in Nadi.
The 3rd MSG Trade Agreement will be broadened with the inclusion of trade of services, labor mobility and investment.
“Moving from a trade in goods from the agreement to include trading services, labor mobility, investment, and public procurement. So we had a successful meeting of trade ministers and trade ministers have underscored the importance of trade officials, going back and consulting with the private sector, and also ensuring that they submit their schedule of commitments,” said Sikivou.
Regions economic powerhouse Papua New Guinea says the next agreement will identify more trade opportunities within the MSG members.
“In the next few years, the region will be so much integrated then before. With MSG Shipping lines and Air connections, and people to people connection this region has huge potential. MSG region alone has some 20 million people.10 million live alone in political exclusivity. the other 10 million live in Indonesia. and we have to one way or another engage them not for political reasons but for them to take advantage of economic potential in MSG block,” said PNG Head of Delegation, Max Rai.
The current MSG Trade Agreement is 20 years old.
The MSG leaders will sign the new agreement in November this year.