Ministry currently reviewing the impact of Preferential Trade Agreement for a possible FTA with Indonesia
ISLAMABAD: The Ministry of Commerce has taken numerous measures to check the lowering foreign trade and exports.
“At present, a study on Pakistan’s accession to Asia Pacific Trade Agreement (APTA) has been launched and a national seminar on the same is expected to be held later this year,” a well-placed official source at the Ministry of Commerce shared documents with this scribe.
The document showed that Pakistan and Indonesia signed a Preferential Trade Agreement in the year 2012 that had been operational since 2013, and the MoC was currently reviewing the impact of the said agreement for a possible FTA with Indonesia.
In addition to the formal trade agreements, there are other institutional arrangements like Joint Trade Committees. Pakistan and Australia JTC is working to increase cooperation in various areas, but primarily focusing on increased market access for fruits, including mangoes, dates and kinnows.
The MoC is also working to increase its economic and commercial presence in the Association of South East Nations. Pakistan is currently a sectoral-level dialogue partner and the ministry is engaging ASEAN member states through diplomatic channels and at different regional forums like UN ESCAP to become a full dialogue partner.
The TDAP organised around 110 international exhibitions abroad last year, where Pakistani exporters displayed their products to the foreign buyers.
In 2013-2014 and 2014-2015, the TDAP sent around 24 trade delegations abroad, where exporters met their counterparts with a view to meet their sourcing/import requirements. However, Pakistan does not have any official display centre abroad.
The documents showed that as a result of effective lobbying and diplomatic efforts of the government of Pakistan, the European Union granted GSP Plus status to Pakistan. Under the scheme, Pakistan now enjoys duty free access on around 95 percent of its exports to the EU with effect from January 2014.
As a result of these concessions, Pakistan’s exports to EU have increased from $6.21 billion during 2013 to $7.54 billion in 2014, registering an increase of $1.32 billion in one year.
Pakistan’s exports of textiles, footwear and leather to EU have shown a growth of 23%, 30% and 10%, respectively. The GSP Plus status provides an excellent opportunity to Pakistan for diversifying exports and to promote exports of value adding sector to the EU.
Moreover, a US-Pakistan Economic Partnership Week was held in Islamabad in March this year and around 450 American and Pakistani businessmen, along with government officials from sectors such as energy, agriculture, textiles, healthcare solutions, infrastructure, and information technology, attended the conference.
Pakistan and Malaysia already have a comprehensive Free Trade Agreement (FTA) for closer economic partnership between Pakistan and Malaysia. Currently, Pakistan and Malaysia are scheduled to conduct Third Joint Review Committee meeting. Both sides will to review the agreement and negotiate further deepening of existing concessions.
Pakistan and Thailand are conducting FTA feasibility study to explore the possibility of concluding a bilateral ETA. This agreement will help Pakistan have preferential access not only in Thai market but also in the ASEAN.
Pakistan’s accession in Asia Pacific Trade Agreement is in process. The Asia Pacific Trade Agreement, previously known as Bangkok Agreement, is a preferential agreement between the countries of Asia- Pacific region, including Bangladesh, China, India, Republic of Korea, Lao People’s Democratic Republic, Sri Lanka, and Mongolia.
