The terms of reference of this study, which was commissioned by PNG's Institute of National Affairs, require it to:

• identify the costs and benefits to PNG of compliance with WTO and APEC;

• identify industries that may be affected and profile them in terms of employment, original capital investment, (if possible) written down capital values, government commitments including equity, protection, tax incentives;

• make suggestions about how PNG can best adjust/adapt to compliance with WTO and APEC conditions;

• identify short and long term measures that PNG and other (larger) member states can take to minimize the short-term costs of compliance (which should look at removing structural rigidities over a planned time scale, interventions that might make PNG industry more competitive such as additional research funding, identification of alternative investment opportunities and possible structural adjustment assistance measures);

• identify any other measures that PNG should be taking to improve its competitive position in both the short and long term; and

• identify any other likely problems from compliance with WTO and APEC.

The report was prepared following a one-week visit to PNG by Malcolm Bosworth, from 6 June 2000. Discussions were held with PNG officials from relevant ministries as well as representatives of key business groups and industries (Appendix 1). A public seminar on ‘WTO and APEC’ was organized by the Institute of National Affairs and held in Port Moresby on 9 June 2000 (Appendix 2).