Pakistan on Wednesday stressed on Turkey to move fast on the challenging Preferential Trade Agreement (PTA) and terminate anti-dumping investigations against Pakistani air conditioners and refrigerators, official sources told Business Recorder.
Pakistan's bilateral trade with Turkey has grown substantially (79 percent ie from $296.725 million in 2003-04 to $531.506 million in 2008-09), with balance of trade in favour of Pakistan. Pakistan's exports to Turkey include cotton fabrics, cotton yarn, chemical materials and products, articles of apparel/cloth (knitted), leather/synthetic fabrics, etc.
The sources said exports from Pakistan are registering satisfactory growth from $218.8 million in 2002-03 to $403.198 million in 2008-09. However, potential exists for further growth and can be tapped, sources added. Pakistan's imports from Turkey mainly include machinery and parts, chemical elements and compounds, chemical materials, non-ferrous metals, cotton yarn and dyeing tanning and colouring material, etc. The imports from Turkey registered a growth from $77.881 million in 2003-04 to $128.308 million in 2008-09.
A framework agreement on PTA between Pakistan and Turkey was signed during the then President' visit to Turkey in January 2004. The Ministry of Commerce has been pursuing the matter diligently and trying to finalise it on a fast track basis. However, Turkey has been working on a go-slow policy because 80 percent of the tariff lines of Turkey are bound with EU customs union, and of the remaining 20 percent tariff lines, which are agricultural products, Turkey cannot agree to allow substantial concessions as it is a politically sensitive issue.
Turkey has offered only a small tariff quota in the field of Basmati rice. The 3rd round of PTA negotiations is due to be held in Turkey for which dates are being worked out. Pakistan and Turkey have an institutional arrangement called Pak-Turkey Joint Ministerial Commission (JMC). The 13th session of the JMC was held in Islamabad on October 14-15, 2009, where the Turkish side revealed that under the framework of Turkish-EU customs union they are ready to negotiate FTA with Pakistan after the European Commission takes a decision to initiate FTA negotiations with Pakistan.
Pakistan is willing to explore the possibility of entering FTA with Turkey provided it is permitted by Turkey's commitments under its customs union with EU. However, to start with both sides need to negotiate and finalise a PTA as agreed in the Framework Agreement on PTA of 2004 between the two countries.
Turkish authorities have recently initiated anti-dumping investigations against Pakistan's export to Turkey covering HS Code. No 841581, 841582, 841590 and 841510900 (air-conditioners/ refrigerators). During discussions in Islamabad, Turkish authorities were requested to terminate these proceedings.
Sources said there is also a problem of reference pricing of textile items in which Turkish custom authorities have an indigenous system of assessing value of these items. Pakistan has asked Turkish authorities to do away with this practice or exempt Pakistan.
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