The Free Trade Agreement or "Closer Economic Partnership Agreement"(CEPA) signed by Pakistan and Malaysia recently will strengthen bilateral relations among between the two countries. According to a message received here, the FTA or the CEPA which will come into effect on January 1, 2008 was the first ever trade agreement among OIC member states.
It is also the first agreement of its kind, signed by Pakistan that incorporate trade in services. The agreement was signed in Kualalumpur on November 8, 2007 by Datuk Seri Rafidah Aziz, Minister of International Trade and Industry and Tahir Mahmud Qazi, High Commissioner on behalf of both countries.
Under CEPA, along with providing WTO-plus market access to each other, the agreement envisages that establishment of Joint Committee of Senior Officials at the technical level and Sub Committees on customs procedures, trade in goods and services and investment.
The Mutual Recognition Arrangements (MRA) as an integral part of the agreement would harmonise the qualifications and service standards in both countries. MRA would also help the professionals, from both countries, to freely travel and render services in each others territories. For instance, services currently contribute 53 percent to the GDP of Pakistan.
It is hoped that market access provided in the services sector by both countries would not only enhance economic activity but also increase people to people interaction among two countries.
Pak-Malaysia trade, during 2006-7, crossed $1 billion marked. Pakistan is confident that the agreement would help increase bilateral trade of goods and services and provide a level-playing-field to the mutual advantage of both countries.
Pakistan is also negotiating bilateral free trade agreement, with Indonesia and Singapore. Pakistan is confident that the agreement with Malaysia and impending agreements with Indonesia and Singapore will increase the substantive relations between Pakistan and Asean member states to help attain the enhancement of Pakistan status with ASEAN to a "Full Dialogue Partner".
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