Pakistan and USA will discuss duty-free import by USA of products manufactured in qualified industrial zone (QIZ) set up jointly by Pakistan and Afghanistan. Duty-free access will also be sought for products manufactured in industries set up in underdeveloped areas in the country.
This was stated by Commerce Minister Humayun Akhtar at a press conference at Export Promotion Bureau (EPB) here on Friday. A heavy trade agenda would be the subject of first bilateral trade talks between the Commerce Minister and new US Trade Representative on November 8 in Washington.
Pakistan has already signed TIFA with the USA and President Musharraf's request for Free Trade Agreement (FTA) has also been lying with the US government, he said.
Humayun said that Pakistan was also trying, through WTO trade talks, to have import duties on textile products reduced by USA which, on average, come to 10.5 percent, compared to only 1.5 percent on other products. This issue will be discussed at non-agricultural market access (Nama) round of talks.
The Commerce Minister said that Pakistan was playing an important role in getting concessions from the developed countries through G-20 group whose ministers held a meeting at Bhurban last week. The meeting also improved Pakistan's image at the international level.
He said that FTA talks with Malaysia were in advanced stage while similar arrangements with China and Singapore were also progressing. The South Asia Free Trade Agreement (Safta) will become effective from January next year. Trade talks with Latin America trade bloc were also due to start shortly.
Humayun said that Pakistan was playing an active role in trade diplomacy. Pakistan along with other countries was trying to end subsidies provided to their agriculture sector by the rich countries. If these efforts are successful Pakistan's GDP will get a boost and farmers will get good prices for their products. In such a case, Pakistan would have to fulfil phytosanitary and sanitary conditions and certification required for export of agricultural products. "We would have to educate our farmers and create a network of modern testing laboratories to face any expected barriers in the way of export of agricultural produce," he added.
He said that under the new scheme of Generalised System of Preferences (GSP) for Europe, Pakistan would get 20 percent reduction in import duty on all products. The country would also get relief in anti-dumping duty as a result of review currently underway.
About restructuring of EPB he said that the Prime Minister had given approval for one of the three models presented, and it has been decided to give the Bureau more autonomy, and it should be relieved of strict government rules to face modern challenges of trade.
Humayun expressed hope that exports target of $17 billion would be achieved as most of the problems faced by exporters due to sales tax refund had been eliminated. Rationalisation of customs duty on polyester chain has also resulted in growth of the textile sector, and exports in August increased by 18.5 percent.
He said that it was for the first time that his visit to FPCCI was very smooth and he did not have to face volleys of questions about business problems.
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