RD Tuna has been operating in a tax free holiday where they had an agreement with the PNG government not to pay tax for 5 years. This agreement was supposed to end by June 2003.
The Provincial and National Government have an option to take up shares in RD and if not, RD will be listed in the stock exchange and PNG shareholders could then invest in the company.
RD holds a 20 year fishing licence with the PNG government.
US PacificIslands Mulitlateral Tuna Fisheries Treaty, under which the US grants $18 million per year to Pacific Island parties and the latter provides access for US fishing vessels.
Fishing boats of other national catch tuna in PNG waters under licence. PNG joined APEC in 1993 and the WTO in 1996.
The following quotes were taken from the excellent website:
r0.unctad.org/infocomm/Diversification/nadi/marine.doc
“RD pays no import tax or export duties, can make a double deduction for its export market development expenditures, and is favoured with a 5 year company tax holiday. The fishing licence agreement is a long term one, with fishing licences being renewed for 5 yearly periods up to 20 years, thus reducing the risk of heavy on-shore investment made by the company.
The government also gives protection to RD from imports of canned tuna into PNG (personal communication with Rodrigo Rivera). The withdrawal by PAFCO from canning and the reduction in production from the Noro plant appear to give RD an opportunity to increase its sales in PI (Pacific Island) countries.
Canned tuna is covered under the Melanesian Spearhead Group Preferential Trade Agreement between PNG, the Solomon Islands and Vanatu.
There is also an opportunity for Pacific canneries to export to Europe, as did PAFCO and Solomon Taiyo Ltd previously, under the Contonou Agreement that replaced the Lome Convention in 2000; at the same time, canned tuna can be exported free of duty to Australian and New Zealand under the Sparteca Agreement.
Port of Vidar - North coast Papua New Guinea.