ISLAMABAD: Free Trade Agreements and Preferential Trade Agreements have not cast negative impacts on production of cash crops or plantation of the country.
Pakistan signed bilateral Free Trade Agreements with Sri Lanka, Malaysia and China in 2005, 2006 and 2007 respectively; however, there is no evidence of drastic fall in the production of any of the cash crops and plantation.
Therefore, there is no question of any negative impact of Free Trade Agreements on cash crops or plantation. In general, agriculture crops are protected as sensitive items in all FTAs.
During the negotiation phase of FTAs all the concerned stakeholders were consulted including Ministry of National Food Security & Research and Farmers Association to address concerns of the agriculture community. The concerns of agriculture community were given due consideration while concluding FTAs. Furthermore, Pakistan has been able to secure preferential treatment on agriculture products under FTAs.
Pakistan has signed Preferential Trade Agreement (PTA) with Indonesia only in last five years. The agreement was signed in February, 2012 and became operational in September, 2013.
PTA brought numerous advantages to Pakistani business community including that Indonesia provided preferential market access to Pakistan on 232 tariff lines. Out of these, 103 tariff lines which are of Pakistan’s export interest are zero rated and includes fresh fruits, cotton yarn, fabrics, readymade garments, fans, sports goods, leather goods and other industrial products.
PTA with Indonesia will also facilitate Pakistan’s entry to Association of South East Asian Nations (ASEAN) market. In order to reap benefits from such agreements, Government of Pakistan participated in various trades promotional activities i.e. trade fairs and exchange of delegations.
