Pakistan and Turkey on Thursday agreed, in principle, to start negotiations on a free trade agreement (FTA), expected to be the top agenda item during Turkish Prime Minister Tayyip Erdogan's visit to Islamabad within next 10 days. However, Turkey, prior to initiating talks on the much desired FTA between the two countries, will have to seek permission from the European Union (EU).
This milestone understanding was reached between the technical teams of the two countries, which met in Islamabad during the 13th meeting of the joint ministerial commission (JMC) to discuss avenues of further expanding economic and commercial relations.
"We have agreed to constitute a joint study group (JSG) and enhancement of trade to one billion dollars by 2010," said one of the participants of the two-day parlays. The Turkish delegation was led by Minister of State Mehmet Aydin, while Pakistan was represented by Commerce Minister Makhdoom Muhammad Amin Fahim.
After signing of minutes of the JMC, both the ministers termed the talks a success, and expressed the hope that formal negotiations on the proposed FTA would start after the Turkish delegation on return home consulted other departments. According to Commerce Minister Amin Fahim, agreement to start deliberations on FTA was a breakthrough, which would definitely lead to further expansion of trade between the two countries.
The Turkish Deputy Minister also expressed similar views, saying that as his delegation returned to Ankara, the entire issue would be discussed by all the stakeholders. He also confirmed that Turkey would have to consult the EU on this important matter.
He, however, was of the view that there were numerous possibilities to further enhance bilateral trade. "Both the countries should encourage the concerned organisations to resolve the issues, highlighted during the talks," added the minister who was provided protection by Turkish commandos.
According to an official statement, distributed amongst the journalists, the meeting was held in a cordial atmosphere, reflecting the brotherly relations between the two countries with the objective of strengthening and further developing their economic and commercial relations on the basis of mutual benefits.
At the plenary session, the head of the two delegations made presentations on the economic situations of their countries, and reviewed the trends in the overall economic and trades relations between Pakistan and Turkey. Both sides were convinced that despite the global economic crises, two billion dollars of bilateral trade volume target could be realised by the end of 2012.
The two sides, considering the importance of effective functioning of private sector-based platforms in promoting bilateral relations, decided to expedite the initiatives of the Pakistani-Turkish Business Council and to hold its next meeting in the first half of 2010.
Both sides underlined the importance of enhancement of trade through the regional economic organisations such as Economic Co-operation Organisation (ECO) and Organisation of Islamic Conference (OIC) in boosting trade between their countries. Both sides also agreed to exchange reciprocal "investment assessment delegations" in 2010 with a view to determining potential sectors and furthering acquaintances among the investment circles of the two countries.
Two agreements - "Protocol on establishing a mechanism for regular consultations on contracting and consulting engineering services" and a MoU on planning between Pakistan and Turkey - were received from Turkish side. The statement further stated that both sides agreed to explore the possibilities of co-operation in the form of joint ventures between the business communities of the two countries. An agreement has also been reached to increase collaboration in the field of science and technology. The Turkish Minister of State also met President Asif Ali Zardari and other ministers.
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