Pakistan and Venezuela are likely to sign a treaty for avoidance of double taxation applicable to trade, commerce and services. Teheran-based David Valesquez Caraballo, ambassador of Bolivarian Republic of Venezuela who is also accredited to Pakistan during his recent visit to Pakistan told members of business community that both the countries have agreed to hold negotiations to sign a treaty in this connection and also revive relations between the two countries which were disrupted in 1998.
Chief Executive Officer of Harvest Trading, Pakistan Ahmad Jawad during the meeting told the ambassador that basically Venezuela was not self sufficient in agriculture and contributed only around 4.5% to their GDP. As against that agriculture is the backbone of Pakistan's economy. It is rich in the production of wheat, cotton, rice and fruits due to the unique soil and climatic conditions.
Jawad offered to export wheat and rice, which was in demand in that country. Pakistan is one of the largest producers of wheat and rice in Asia. Pakistan's wheat harvest from the 2010-11 crop is expected to be around 23.5 million tonnes, having a surplus of about 1.5 million tonnes which was enough for exports to Venezuela where wheat production is zero and the commodity is imported from USA and China.
Similarly, four million tonnes target is set for rice export during fiscal 2010-11. Thus Pakistan could easily meet the need of 29 million population of Venezuela in wheat and rice. Establishment of new linkages between two governments could lead to establishment of new ventures, he said.
Caraballo acknowledged the interest of CEO, Harvest Trading and invited him to visit and meet members of business community of his country and establish much needed, new trade relationship between the two countries. Jawad also suggested enhancing people to people contacts, participation in trade fairs and exhibitions to help increase bilateral trade.
Both the countries should also consider reducing tariffs and removal of non-tariff barriers. "We want to build a long-term relationship and trade is the only source, which could overcome the barriers and build confidence between the two countries, which may lead to increasing confidence of private sector in two countries," he said.