Syed Naveed Qamar, Pakistan Minister for Commerce, and Mehmet Mus, Turkish Minister for Trade, have signed a Trade in Goods Agreement (TGA) intending to increase bilateral trade up to US 5 billion dollars in three years on August 12, 2022.
Prime Minister Shahbaz Sharif visited Turkey from May 31 to June 2, 2022, to establish good trade relations between both countries.
The Minister of commerce said that the agreement had been finalized to sign by 14 rounds of bilateral negotiation/discussions. Minister of Law & Justice and Tariff Policy Board has assessed the final draft of the pact. It consists of provisions on bilateral safeguards, dispute settlements, exceptions on the balance of payment, and agreement reviews. Tariff Policy Board has approved concessions in tariffs. Rules of origin are the same as Pakistan, already following the EU’S Rule of Origin under the GSP+ regime.
Turkey has offered concessions in 261 tariff lines in the agriculture and industrial sectors to Pakistan are base metals, batteries, fans, leather, sports goods, plastics, glass, furniture, ceramics, razors, cutlery, rice, mangoes, and processed agriculture products. Exporters of Pakistan will have more reach/access to the market than India, Malaysia, Vietnam, and China. Zero custom duty on 123 agricultural and industrial products, 92 tariff lines will decrease to zero percent in 5-10 years, 50% concessions in 5 tariff lines, and tariff rate quota for 14 tariff lines.
Turkey has requested Pakistan to provide concessions in tariffs for 300 products, but Pakistan has provided a reduction in 130 tariff lines. Pakistan is providing zero duty in16 products/tariff lines. In the other 16 products, it will be zero in 5-10 years, and in 98 products, Pakistan is providing a 20-50% reduction in tariff.
Both countries signed a framework for a bilateral trade agreement in 2016, which resulted in an increase in Pakistan’s exports and an increase in bilateral trade as:
By the PTA, Pakistan has incorporated an export target of US$ 7.6 billion to the Turkish market.
Prime Minister Shahbaz Shariff said to the Turkish Trade Minister that Pakistan had oil imports of US 20 million billion, which is hard to afford. Turkey has a great experience in hydel power projects. Pakistan needs cooperation and investment in renewable energy sources, i.e., solar, hydel, and wind. He said first need to target the tube-wells on solar, public & private partnerships in solar parks for 5000-6000 MV, solar panels for low-income families & for government offices.
He said he would look after the matter and not leave it to bureaucracy to save billions of dollars. He guaranteed that investors would receive payment through the State Bank of Pakistan (SBP) and banks’ profits.
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