A June deadline for a Pacific-wide trade deal covering Australia and New Zealand is looking shaky with Papua New Guinea's prime minister concerned over market access.
Peter O'Neill met with Prime Minister Malcolm Turnbull for bilateral talks on Thursday, after telling the National Press Club in Canberra that his country has better access to European and American supermarket shelves for its products than those closer to home.
"The main thing is accessibility to Australian and New Zealand markets and we think we should be fairly given the opportunity to access markets," he told AAP.
PNG declared this week it wasn't ready to ink the Pacer Plus deal in its current form because the terms were unfavourable to smaller nations in the Pacific.
So far negotiations have spanned six years.
"We have better access to the European markets for our canned tuna, compared to Australia," Mr O'Neill said, but he declined to pre-empt the outcomes of ongoing talks.
Ministers from both nations met in Canberra on Thursday morning for an annual forum which discussed regional security, asylum seekers, health, defence and police ties.
The two countries signed a new aid agreement that has a focus on improving trade opportunities and addressing family and sexual violence issues.
PNG is Australia's largest aid recipient, receiving more than $500 million in total assistance each year.
The ministers also agreed on new arrangements concerning Australian public servants seconded to PNG departments.
Former Australian Federal Police assistant commissioner Alan Scott has been appointed a deputy commissioner in the Papua New Guinea Royal Constabulary and will be sworn in soon.
Mr O'Neill flagged PNG will soon reintroduce visas on arrival at Port Moresby airport for Australians, to make it easier for tourists and school groups to visit the Kokoda Track.
Foreign Minister Julie Bishop also announced Australia will expand its diplomatic presence in PNG with a consulate general to be established in Lae.
