Turkey should remove local preventive in PTA/FTA with Pakistan

Islamabad, July 12, 2019: Turkey should remove local preventive in PTA/FTA with Pakistan, this was stated by Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry in a press release issued.

He said that in the past textile exports to Turkey was based on normal tariffs of imports but later Turkey imposed protective duties i.e. 18 percent which was very high, leading to declining in the earlier registered increase in the textile exports to Turkey.

The volume of bilateral trade between both nations drastically reduced from US$ 1.08 billion to US$ 792 million after imposition of a protective duty on textile.

In his statement, he appreciated the efforts of Government of Pakistan and Turkey to enter into Strategic Economic Framework (SEF) for enhancement of bilateral relations in trade, tourism, healthcare, hospitality, industry, education, housing, agriculture, aviation and banking. 

Read More: Auto Sales decreased by 2pc MoM and 5pc YoY

He further stated that Pakistan and Turkey have concluded nine rounds of negotiations including SEF, but so far the reports/outcome of negotiation has been not shared with the concerned stakeholders. He emphasized on the need for strong homeworking of the government with the consultation of stakeholders for formulating a list of concessionary items for FTA in trade with Turkey.

Turkey being part of customs union with the EU, providing assumption that Pakistan may also have access to Turkish market under GSP+ status. This assumption was diluted due to the refusal of Turkey to extend GSP+ status to Pakistan and Turkey proposed conducting negotiations on bilateral FTA between both countries.

President FPCCI urged the government to resolve all antidumping and non-tariff barriers before entering into SEF. Textile, rice, cutlery, crockery, badges, Musical instruments, surgical instruments, gloves, footwear, sports goods, construction materials and leather products are the main exportable items of Pakistan that need special market access to Turkey by the reduction in tariff rates.

He also stated that Pakistan offers Turkish for their participation in special economic zones which may add to the quality competition in specific housing, food and pharmaceutical industries. He also underlined the need for activation of train service with Turkey in order to reduce trade cost and transit time as trade through the sea is not cost-effective for both the nation.  

Turkey should promote trade directly with Pakistan instead of third countries like importing of surgical items from Germany that are originally manufactured in Pakistan. He also underlined the need for simplification of visa procedure for genuine businessmen and traders. He further added that Pakistan and Turkey both are active members of ECO, Developing eight and Organization of Islamic Countries (OIC). FPCCI will take up the above issues in the meeting between FPCCI and TOBB in the forthcoming meetings, he added.

Leave a Reply

Your email address will not be published. Required fields are marked *