ISLAMABAD: The Ministry of Commerce is trying to initiate talks to sign Free Trade Agreement (FTA) with Eurasian Economic Union (EEU).
The EEU is an economic union of the states located primarily in northern Eurasia as well as is a customs union of the Russian Federation and other former Soviet Union states. The EEU has an integrated single market of 183 million people with a gross domestic product of over $ 4 trillion .
The EEU introduces the free movement of goods, capital, services and people and provides for common transport, agriculture and energy policies, with provisions for a single currency and greater integration in the future.
Keeping the potential of the market in view as well as to gain a competitive market access, MoC has moved to Ministry for Foreign Affairs to approach EEU through diplomatic channels so that Pakistanis traders and businessmen nay find new emerging markets in the member states of EEU” a well-placed source at Ministry of Commerce (MoC) told Customs Today.
The source said that Pakistan and Russia could not sign either Preferential Trade Agreement (PTA) or Free Trade Agreement (FTA) just because of the fact that Russian Federation was member of EEU and without proper and official approval from EEU it could not be signed.
Even then, the source said that MoC made numerous efforts through measures to bolster trade with Russian Federation, like holding seminars to create awareness among the exporters, arranging participation of 12 exporters from agricultural sector in World Food Moscow exhibition in September, 2015 with the view to help them introduce and capture Russian Market as well as arranging participation of Pakistani exporters in Heimtextil Moscow, a leading exhibition for textile products this year.
Moreover, the source added that MoC was arranging participation of 15 exhibitors in the International Sports Exhibition in Moscow next month.
The main issue between Pakistan and EEU is higher difference of the rate of customs duties; therefore, MoC has also approached Foreign Ministry to persuade EEU on lowering Customs Duties for Pakistani products in its member states.
It is pertinent to note here that in May 2014, Belarus, Kazakhstan and Russia signed a treaty aiming for the establishment of the EEU and this treaty came into force from January 01, 2015
Treaties aiming for Armenia’s and Kyrgyzstan’s accession to the Eurasian Economic Union were signed in October and December 2014 respectively. Armenia’s accession treaty came into force on January 02, 2015. Kyrgyzstan’s accession treaty came into effect on August06, 2015.
Moreover EEU member states have a common external tariff on all goods entering the market and unified methods of valuing imported goods for joint coordination in the area of energy, industry, agriculture and transport.
