ISLAMABAD: The government is negotiating Free Trade Agreements with Thailand, Turkey, Korea and Indonesia which will be signed after conclusion of the negotiations. It is pertinent to mention here that Pakistan has not signed any Free Trade Agreement (FTA) with any country since June, 2013.
According to details, the cabinet accorded an approval to initiate negotiations on Pak-Thailand FTA (PATHFTA) in its meeting on August 24, 2015. Eight rounds of negotiations have been held so far. Both sides have completed the text of the agreement, shared their respective initial request lists and tariff reduction modalities.
Efforts are being made to conclude Free Trade Agreement by end OF 2017. Pakistan is also in process of negotiating comprehensive Free Trade Agreement (FTA) with Turkey to remove barriers to its exports in Turkish market. This FTA will cover trade in goods, trade in services and chapter on Investment. So far seven rounds of negotiations have been held. Efforts are being made for an early conclusion of FTA.
Pakistan and Korea both sides have concluded a feasibility to explore the possibility of a Free Trade Agreement between the two countries. The joint recommendation prepared by both sides suggest on Free Trade Agreement between the two sides. Under the umbrella of Comprehensive Economic Partnership Agreement (CEPA), Indonesia and Pakistan agreed to initially sign a Preferential Trade Agreement (PTA). The PTA was signed on 3rd February, 2012 and was operationalized on 1st September, 2013.
During the first review meeting of Pakistan-Indonesia PTA in August, 2016, Pakistan side expressed concern over balance of trade being heavily skewed in favour of Indonesian side. During the last round held in August 2017, Indonesia agreed for following: to allow import of kinnow for entire season; to allow import of mangoes from Pakistan-the only country given such permission; to eliminate duty on two textile products from Pakistan; and, to consider positively reducing tariff on 20 products of Pakistan’s export interest.
