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Thursday 3 September 2015 | Published in Regional


PORT MORESBY – The Melanesian Spearhead Group is undertaking a feasibility study on the value of operating its own shipping and airline services.

Trade ministers say improved connectivity within member countries will foster more trade and economic activity.

Papua New Guinea has been tasked with investigating the potential of the sub-regional body running its own ships and planes.

A report on the study is expected to be presented to the ministers by next year.

Fiji TV reports the director of trade at the MSG Secretariat, Peni Sikivou, saying connectivity remains a challenge in the region.

A meeting last week also agreed to broaden the Third MSG Trade Agreement to include trade in services, labour mobility and investment.

From 2010 to 2014, trade value between Pacific Island countries in the Melanesian Spearhead Group has increased by 114 per cent.

Trade value between the Pacific island countries in the MSG is $169 million compared to just $79 million in 2010.