The negotiations for free trade agreements with Turkey and Thailand are at an advanced stage to promote the country's exports. Parliamentary Secretary Commerce, Shaza Fatima told to the National Assembly on Thursday during the question-hour session. She said that negotiations with Iran on Free Trade Agreement are also being initiated and a joint research study to access the potential for a preferential arrangement with South Korea is underway.
She said that negotiations for the second phase of Free Trade Agreement with China are also underway. She said that China has agreed to favorably consider elimination of tariff on Pakistani products.
She said that Pakistan has not signed any Free Trade Agreement (FTA) with any country since June 2013. However, she said that the government is negotiating Free Trade Agreements with Thailand and Turkey which will be signed after conclusion of negotiations.
She said that eight rounds of negotiations have been held so far between Pakistan and Thailand. Both sides have completed the text of the agreement, shared their respective initial request lists and tariff reduction modalities, she said.
About FTA with Turkey, she said that the government is in the process of negotiating comprehensive Free Trade Agreement (FTA) with Turkey to remove barriers to its exports in Turkish market. She said that this FTA covers trade in goods, trade in services and chapter on investment. She said that so far seven rounds of negotiations have been held.
In a written reply to a question, Minister for Commerce and Textile Muhammad Pervaiz Malik said that negotiations for the 2nd phase of China-Pakistan Free Trade Agreement (CPFTA) are under way. He said that Pakistan has raised its concerns on widening trade deficit and erosion of trade preferences. He said that China has agreed to favorably consider elimination of tariff on priority on products of Pakistan's export interest.
Answering another question, he said that sustaining GSP Plus in the European Union as a result of qualification for GSP+ scheme, Pakistani products have been enjoying duty-free access in the European Union since 1st January 2014. He said that through this arrangement Pakistan's export to the EU have increased from 4.54 billion euros in 2013 to 6.29 billion euros in 2016. Pakistan's exports to the EU have increased by 38% in 2016 over 2013. He said that moreover, Pakistan bilateral trade with Hungary in 2016-17 has increased to US$ 61.23 million comparing with US$ 49.32 in 2015-16.
In another written reply, Minister for Commerce and Textile Pervaiz Malik said that the China-Pakistan Free Trade Agreement covering goods and investment was signed on 24th November, 2006, and implemented from 1st July 2007. He said that under the FTA, concessions were obtained in raw materials and intermediate goods so that Pakistan could become part of the Chinese value chains. As a result, exports of Pakistan increased from US $575 million in the year 2006-07 to US $1463 million in 2016-17 registering an increase of 154%.
He said that presently, Ministry of Commerce is negotiating the 2nd Phase of the FTA with China. He said that the focus is on exchanging concessions in such areas where the strengths of the two countries complement each other thereby encouraging intra-industry trade. He said that furthermore, concessions are also being requested in the Chinese "sunset" industrial sectors which would incentivize Chinese investors to relocate their production facilities in Pakistan. He said that during the 8th round of negotiations of the 2nd Phase of CPFTA held on September 14-15, 2017 in Beijing, the Pakistan side made a detailed presentation on the investment opportunities in Pakistan and highlighted the incentives available under the various schemes. He said that the Chinese side was requested to consider the relocation of export oriented Chinese industry into Pakistan in sectors like garments, solar panels, mobile phones, electrical equipment, electronic and food processing. He said the Chinese side appreciated Pakistan's proposal and agreed to share the same with the relevant authorities to facilitate re-location of industry into Pakistan.
Through another reply, the minister said that textile exports have increased by 0.04% in 2016-17 compared to 2015-16; on month on month, September 2017-18 textile exports increased by 12.44% compared to September 2016-17. he said that August 2017-18 textile exports increased by 8.55% as compared to August 2016-17, July 2017-18 textile exports increased by 2.78% as compared to July 2016-17 and July-September 2017-18 textile exports increased by 7.91% as compared to July-September 2016-17.
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