Pakistan will host the Trade Ministers'' Council Meeting of D-8 in Islamabad on 17th February 2016. The meeting will deliberate upon the status of Preferential Trade Agreement (PTA) among the contracting parties which is at an advanced stage of preparation. The members would discuss the tariff reduction lists provided so far by members states. As of now, Indonesia, Malaysia, Nigeria, Pakistan and Turkey have submitted their lists.
The Developing 8 (D-8) is a group of Muslim countries comprising Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Turkey and Pakistan. The establishment of D-8 was announced officially by the Summit of Heads of State/Government in Istanbul, on June 15, 1997. Federal Minister for Commerce, Engr Khurram Dastgir Khan, who will chair the Trade Ministers'' Council Meeting, held a meeting with the ambassadors of D-8 countries and apprised them of the preparations Pakistan has made for the Trade Ministers'' Council Meeting.
Talking to the ambassadors, the minister said that Pakistan intends to hold meaningful negotiations on trade matters and conclude negotiations on fast-track basis to reap the maximum benefits out of the Agreement. He said that the economic cooperation and trade facilitation among the member countries will change the lives of the teeming millions which inhabit the member states and are poor.
The meeting will also discuss the dispute settlement mechanism and continue its discussion on consolidated draft Dispute Settlement document which set the rules to resolve the disagreements between the parties. The Trade Ministers'' Council will discuss the provisions for Rules of Origin and the Bangladeshi proposal to have 30% Local Value Addition Criteria for LDCs as agreed in Trade Preferential System (TPS) amongst the OIC Member States.
Pakistan''s total exports to D-8 countries in 2014-15 were $1.602 billion while the imports were $3.67 billion. Exports to Iran stood at $30 million, Turkey 309.2 million, Bangladesh $697.6 million, Indonesia $143.2 million, Malaysia $205.1 million, Egypt $150.9 million and Nigeria $66.7 million.
According to the PTA, tariff above 25 per cent will be reduced to 25 per cent, above 15 per cent and below 25 per cent will be lowered to 15 per cent and above 10 per cent and below 15 per cent will be reduced to 10 per cent. In order to enhance co-operation in the area of trade among the member countries, a High Level Trade Official (HLTO) consisting of the technical experts of the member countries, was constituted to discuss and finalise the PTA.
The agreement envisages tariff reduction on 8 percent of tariff lines having MFN tariff of above 10 percent in four equal instalments for all D-8 members except Bangladesh. Being an LDC, Bangladesh had been allowed eight years for reduction of tariff. The tariff reduction modality under the agreement will be as follows: (i) Tariff above 25 percent shall be reduced to 25 percent; (ii) tariff above 15 percent and below 25 percent shall be reduced to 15 percent and; (iii) tariff above 10 percent and below 15 percent shall be reduced to 10 percent.
For the products to be eligible for preferential treatment, the agreed Rules of Origin require at least 40 percent value addition which implies a manufacturer can import up to 60 percent of its inputs for manufactured goods. Agriculture produce and live animals have to be wholly produced and obtained in the territories of the parties to be eligible for tariff concessions. Pakistan will be the chair of this Trade Ministers'' Council for the first time.
Comments
Comments are closed.