The Papua New Guinea government is ready to play its part in brokering peace between the US and China to avoid a full-blown global trade war.
Port Moresby will host leaders from 21 Pacific-rim countries including the US, China, Russia, Japan at the Asia Pacific Economic Cooperation summit in November.
Trade tensions between China and America have ramped up this year after the Trump administration whacked 25 per cent tariffs on steel and 10 per cent duties on aluminium imports.
Australia, along with Argentina and Brazil has secured a permanent exemption while Canada, the European Union and Mexico have received a temporary reprieve.
APEC trade ministers will meet in the PNG capital later this month and the matter is likely to be on the agenda.
PNG's Trade Minister Rimbink Pato flagged he will use the meeting to emphasise the importance of trade liberalisation and a rules-based International order "where there is fair play for all".
"Dealing with a nuclear family, you cannot operate in isolation from the extended family - the uncles and aunts and cousins and so on," Mr Pato told AAP at the Australia-PNG business forum.
He flagged PNG could be the perfect neutral territory for Chinese President Xi Jinping and US President Donald Trump to resolve their trade tensions later this year.
"Everyone is a welcome guest in my country," Mr Pato said, adding there was scope for the "Melanesian way" to help resolve issues.
"We're always peace making."
The US is planning 25 per cent tariffs on 1300-odd Chinese industrial, technology, transport and medical products.
China has fired back with a planned 25 per cent tariff on whiskey and about 100 other US products, but has not yet said when it will take effect. It has already raised tariffs on some other US products, including fruits and wine, in response to the aluminium and steel tariffs.
