Bid for getting TTP membership: Cabinet allows Commerce Ministry to join negotiations

The Cabinet has allowed Commerce Ministry to join negotiations to get membership of Trans-Pacific Economic Partnership Agreement (TPP) as proposed by Australia as Pakistan''s ''look east policy'' remained unsuccessful, official sources told Business Recorder.
A Regional Trade Agreement (RTA) ie TPP, signed between New Zealand, Chile, Singapore and Brunei, included provisions for liberalisation of regional trade in its multi-dimensional aspects.
One of the objectives of the agreement is to create a trading bloc that would be seen as model in the Asia-Pacific Region. The original signatory members of TPP intend to expand the membership of the RTA. Some of the countries, like USA, Australia, Peru and Vietnam, have already announced their intention to join the TPP. Invitation has also been extended to Pakistan to join the organisation.
Sources said that Pakistan had been striving for bilateral Free Trade Agreements (FTAs) with USA, New Zealand, Australia and Vietnam. Pakistan, as part of its ''look east policy'', was also working on possibility of a FTA with Asen on 10+1 basis. However, the responses from the partner countries were not encouraging, sources added.
They said that TPP would provide Pakistan an opportunity to pursue market access initiatives with other trading partners, and leverage it as a platform to integrate the Pak economy in the Asia Pacific Region. Consequently, Prime Minister Yousaf Raza Gilani refused to clear the proposal and instead directed the Ministry of Commerce to place the issue before the Cabinet for collective decision.
When the issue came under consideration in the Cabinet on March 24, a number of proposals were tabled by different Ministries with regard to signing of RTA.
Sources said that the Cabinet decided that an inter-ministerial negotiating team, to be led by Ministry of Commerce, comprising representatives from the Ministries of Foreign Affairs, Industries and Minfa, Federal Board of Revenue (FBR) and Board of Investment (BoI) would negotiate on Pakistan''s behalf. Commerce Ministry has also been directed by the Cabinet to include other stakeholder Ministries or members from the private sector in the negotiating team on as needed basis.
The Cabinet was of the view that the stakeholders in the negotiating team must address the concerns of respective sectors during negotiations. Sources said that after successful conclusion of the negotiations, the agreement would be submitted to the Cabinet for approval.
It is pertinent to mention here that the private sector has long been criticisng Commerce Ministry for not taking it on board in trade negotiations with different countries.
FTAs already negotiated by Commerce Ministry have failed to yield the desired results, commented one official of Industries Ministry. He said that all operational FTAs should be revisited to determine what benefits Pakistan has achieved so far in terms of exports.