Commerce Minister spells out strategy for access to world markets
Pakistan Times Business & Commerce Desk

KARACHI: Federal Commerce Minister Humayun Akhtar Khan Saturday spelled out government's strategy for international market access with emphasis on capturing European market being Pakistan’s biggest trading partner while seeking reduction or abolition of duties for Pakistani exports.

Addressing a news conference here the minister said that during the recent tour of United States, President Musharraf had urged George Bush to commence discussions on a free trade agreement between the two countries.

He pointed out that the European Union is discussing the ‘General System of Preferences’ scheme with new proposals under review. He said, President Musharraf’s meetings with President Jacque Chirac of France and British Prime Minister Tony Blair have proved successful and both European states have promised to support Pakistan in achieving their trade plans.

France and Britain are two leading countries in the European Union whose recommendations could be weigh substantially, he added.

Pakistan has taken the stance that its massive expenditure for war on terrorism and eradication of extremist elements is causing extra burden on national exchequer. The European Union and United States can easily compensate by bringing duties to zero level. President Musharraf’s plea to the US was that Pakistan wanted trade not aid.

He said, presently Pakistan has an environment of investors’ confidence and that is depicted by the fact that machinery worth US$922 million was imported during first quarter of this year. The industrial scene in Pakistan has achieved a total revolution with deregulation. “Duties have been rationalized, import and export permits have been abolished, the entire economy has been privatized, cost of business has been reduced, cost of capital has slumped from 20-25 per cent markup, liquidity position in banks has significantly improved and the entire business and industry is in expansion mode, he said.

The US has concluded FTAs with some countries on bilateral basis and is in the process of negotiating on similar agreements with others like Sri Lanka, Thailand and New Zealand. Being a close ally of the US, Pakistan would like to get market access to American markets and a bilateral FTA would re-affirm the holistic Pakistan-US strategic relationship. The US President has promised to begin negotiations on the agreement with Pakistan, Humayun Akhtar disclosed.

Talking about Latin American countries the commerce minister said the region is fast growing in trade and commerce and emerging on international scenario as potential market for imports. Its trading bloc MERCOSUR with Brazil and Argentine as top countries is the fourth largest trading bloc in the world. Both the countries have agreed to go ahead with negotiations on free trade and other economic relations.

As far as relations with China were concerned Humayun Akhtar revealed that Pakistan Prime Minister Shaukat Aziz is proceeding to that country in a couple of days to hold talks on FTA. Pakistan has an operational Preferential Tariff Arrangement with China since Januray 2004 under which China gave tariff concessions on 893 items and Pakistan has given similar concessions on 188 items.

He said China has agreed to sign a protocol during the Prime Minister’s visit to deepen the concessions on 186 items covered under the existing PTA and extend tariff concessions to a further 913 items.

The protocol would also include an initiative to establish a joint study group to develop a roadmap for the bilateral FTA. This programme would include an early harvest programme for immediate tariff elimination on the items of bilateral interest. The entire exercise would be completed within six months.●