ISLAMABAD: Due to the adverse impacts on Pakistan’s trade balance with other countries, the Commerce Ministry is cautious in signing further Preferential Trade Agreements (PTAs) and Free Trade Agreements (FTAs) with other countries.
Pakistan signed FTAs with SAARC on January 2004, Sri Lanka on June 12, 2005, China on November 2006, and with Malaysia on November 2007. Pakistan signed PTA with Mauritius on July 30, 2007 at Port Louis.
A ministry source said that clauses and conditions agreed in these agreements did not guard Pakistani trade interests, resultantly; trade balance with these countries went in their favour.
“Moreover, there was no restriction on volume of imports from these countries to Pakistan. Consequently, Pakistani exporters without caring the interests of local industrial sector, went on importing those items which casted negative impacts on Pakistani local industry,” the source said.
Therefore, the source said that the Commerce Ministry was cautious about the adverse impacts of the FTAs and PTAs.
“The ministry is looking into each and every clause of agreements and will try to finalise conditions of agreements while taking full perspective of their possible impacts on local trade, investment and industrial sector,” he added.
He said that the ministry had taken input from the National Tariff Commission (NTC) on FTAs. For example: the ministry incorporated provisions in Chapter V (Trade Remedies) under Article 52 Anti-Dumping, Article 53 Subsides and Countervailing Measures, Article 54-Bilateral Safeguard Measures and Article 55-Global Safeguard Measures in Pak-Malaysia FTA.
“The relevant provisions failing within the mandate of NTC were incorporated in agreements with above countries under the chapters/articles relating to trade remedies, including anti-dumping subsides and countervailing measures, bilateral safeguard measures and global safeguard measures,” the source added.
The cabinet ratified PTA with Mauritius on 30 October 2007. Under the agreement, Pakistan offered concessions to Mauritius on 130 items/ tariff lines i.e. 1.9 percent of its total existing national tariff lines, whereas Mauritius has given concession on 102 items/tariff lines i.e. 1.64 percent of its total existing national tariff lines.
