Pakistan and Turkey’s trade in goods agreement comes into effect, boosting bilateral trade

[Edevelop]

ISLAMABAD: Pakistan and Turkey’s Trade in Goods Agreement, which was signed in August 2022, has finally come into effect on May 1, 2023, as per mutual agreement. The agreement was signed by the Turkish Minister for Trade, Mehmet Muş, and Federal Minister for Commerce of Pakistan, Syed Naveed Qamar, and witnessed by Prime Minister Shehbaz Sharif.

The Trade in Goods Agreement signifies a notable milestone in the historic brotherly relations between Pakistan and Turkey and envisages further integration of the markets and business communities of both countries. This agreement is expected to increase bilateral trade across various sectors and bring reciprocal tariff concessions extended to select exports of both countries.

Under the agreement, Pakistan has gained preferential access to the Turkish market for 261 tariff lines covering traditional as well as non-traditional sectors such as leather, rice, dates, mangoes, cutlery, sports goods, seafood, processed agricultural products, rubber tubes and tires, plastics, and engineering goods.

Meanwhile, Turkey has been granted concessions on 130 tariff lines, including products such as black tea, processed food products and flavorings, industrial raw materials and parts of machinery, and parts of electronic equipment.

The Trade in Goods Agreement is expected to have a significant impact on Pakistan’s exports, particularly in non-traditional sectors. It will provide Pakistani businesses with access to the Turkish market, which has a population of more than 80 million people, and will allow Pakistani exporters to take advantage of the growing Turkish economy.

Speaking on the occasion, Syed Naveed Qamar, the Federal Minister for Commerce of Pakistan, said that the agreement would open up new opportunities to boost bilateral trade across various sectors. He also stressed the need to increase business-to-business interaction for strengthening trade and investment relations between the two brotherly countries.

The Turkish Minister for Trade, Mehmet Muş, also expressed his satisfaction with the agreement, saying that it will further strengthen the historic ties between the two countries. He added that the agreement will pave the way for deeper economic cooperation and closer bilateral relations.

Overall, the Trade in Goods Agreement between Pakistan and Turkey is a significant step towards strengthening the economic ties between the two countries. It will create new opportunities for Pakistani businesses to expand into the Turkish market, and vice versa. This agreement is expected to provide a major boost to bilateral trade and investment, leading to increased economic growth and prosperity for both countries.

https://www.pakistantoday.com.pk/2023/05/04/pakistan-and-turkeys-trade-in-goods-agreement-comes-into-effect-boosting-bilateral-trade/

 

[Pak_Sher]

Pakistan needs to focus on trade and exports

 

[Edevelop]

Preferential trade with Turkiye activated​

ISLAMABAD: Almost after seven years, Pakistan and Turkiye have implemented a preferential trade agreement to boost bilateral trade volume across various sectors.

Both sides notified duty reductions on mutually agreed tariff lines with effect from May 1, an official announcement of the commerce ministry said on Thursday.

Islamabad and Istanbul signed the “Trade in Goods Agreement” in August 2016.

Under the agreement, Pakistan has gained preferential access to the Turkish market under 261 tariff lines covering traditional as well as non-traditional sectors such as leather, rice, dates, mangoes, cutlery, sports goods, seafood, processed agricultural products, rubber tubes and tyres, plastics, and engineering goods.

Pakistan’s export value of these tariff lines stands at $5.1 billion or 16 per cent of the total exports, while Turkish global imports in these products amount to $7.6bn.

Duty was reduced to zero per cent on 123 tariff lines, including five agricultural and 118 industrial products. The current export value of these products is $714 million, while Turkish global imports of these products stand at $3.920bn.

Customs duty on average is 2-3pc. However, the additional customs duty is 20pc for industrial products, which will be reduced. This is one area having the potential to increase exports of non-traditional products.

Whereas concessions on 130 tariff lines have been extended to Türkiye, including products such as black tea, processed food products and flavourings, industrial raw materials and parts of machinery, and parts of electronic equipment. The total export value of these products is $23bn or 12pc of its total global exports. Pakistan’s global imports of these products stand at $6bn.

Pakistan has reduced duty to zero on 16 tariff lines for Turkiye. Pakistan’s global imports of these tariff lines stand at $1.224bn, while Turkish global exports of these products are $2.486bn.

Pakistan exempted duty for Turkiye immediately on cocoa powder, acrylic filament and staple fibre, nonwoven man-made filament, black tea, modems, wire condensers, flavours for the food industry, machines for reception and transmission, enzymes and gum base.

The agreement will open new export opportunities, Commerce Minister Naveed Qamar said in a statement.

Since the signing of a framework agreement on March 22, 2016, both sides have held 14 rounds of bilateral negotiations to identify those products for trade which are not affecting each other’s interests.

In the second phase, Turkiye will reduce the duty to zero per cent on 92 tariff lines during a period between five and 10 years. Pakistan’s export value of these products is $1.608bn, while Turkish global imports stand at $2.084bn.

Turkiye has offered a margin of preferences and tariff rate quota on agriculture products to Pakistan. The categories of products which will get benefit from the concessions are leather, footwear, glass and ceramics, articles of base metal, plastics and rubber, furniture, mattresses and lamps, sports and engineering goods, chemicals and cosmetics, agriculture products and processed agriculture.

While Pakistan will reduce to zero per cent in five to 10 years on 16 tariff lines. Turkish global exports of these tariff lines stand at $2.123bn, while Pakistan’s imports of these products are $684m.

In five years, the duty will be exempted on chocolate crumbs, active yeast, flavouring powders, animal feed, laboratory reagents, clamps of steel, copper wire 6mm, pressure-reducing valves and slide fasteners. In 10 years, duty will be reduced on clips, brackets of iron and steel, mounting, fitting for furniture, parts of sorting, screening, grinding machines, apparatus for transmission of voice, etc.

The commerce minister stressed the need to increase business-to-business interaction for strengthening trade and investment relations between the brotherly countries. He said signifies a notable milestone in the historic brotherly relations between Pakistan and Türkiye and envisages further integration of the markets and business communities of both countries.

The total trade between Pakistan and Turkiye stood at $883 million in the fiscal year 2021-22 with Pakistan’s exports to Turkiye amounting to $366m and Pakistan’s imports from that country amounting to $517m. The balance of trade is in favour of Turkiye with a negative trade balance of $151m in 2021-22.

Preferential trade with Turkiye activated

Duty reduced to zero per cent on 123 tariff lines, including 5 agricultural and 118 industrial products.

www.dawn.com

 

[SoulSpokesman]

@Edevelop

What does Pakistan propose to export to Turkiye?

Regards

 

[-=virus=-]

@Edevelop

What does Pakistan propose to export to Turkiye?

Regards

says right in the article

traditional as well as non-traditional sectors such as leather, rice, dates, mangoes, cutlery, sports goods, seafood, processed agricultural products, rubber tubes and tyres, plastics, and engineering goods.

 

[SoulSpokesman]

Virus,

I got that. But does it produce that much of those in surplus quantities to export?

Regards