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Thursday, March 28, 2024

Pakistan-Turkey FTA- The sixth round talks

Back in 2015, Pakistan and Turkey signed a Term of reference, negotiating on the mutual Free Trade Agreement. The documents were signed in the first round of talks in Ankara, back in October 2015.

Robina Athar, the Additional Secretary Commerce led on behalf of Pakistan while the Turkish side was led by then Acting Deputy under-secretary Economy, Husnu Dilemre. The two countries restated a comprehensive free trading agreement and settled negotiation on a fast- track basis. The background of this Pakistan-Turkey FTA pact is based on the decision made by the Prime Ministers of the two countries during a meeting of the High Level Strategic Cooperation Council in Islamabad in February 2015.

Now the 6th round of negotiation on FTA between Pakistan and Turkey was held in last week of January 2017, through a digital video meeting. Both sides made a discussion on the agreement of services, goods and other investments. Further in this manner, the agreement would be signed in April 2017.

According to the senior officials of Ministry of Commerce, because of the additional duties imposed by the Turkish government, back in 2011, the trade balance of Pakistan started to decrease with a rate of 19% per annum. Because of these duties, the exports of Pakistan dropped form USD 873 million in 2011 to USD 311 million in 2015. This situation gave rise to the need of making such an agreement that can help both the economies to maintain a fair trade and enjoy economic stability in terms of import and exports.

The major exports  of Pakistan to Turkey include; denim PET, ethanol, cotton yarn, fabric and garments, carpet, rice, leather, surgical instruments and sports good, chemicals. While major imports include; manmade textiles, towels, steel structure, tanning and plastic chemicals, processed milk and whey. The additional imposed tariffs from Turkey have a considerable impact on the major exports of Pakistan. With all such situations the major purpose of signing the FTA with turkey was to provide both the countries with an opportunity to have a positive trade balance.

The FTA is of great importance for both economies and is based on a number of facts from past. However, the FTA between Pakistan and Turkey will open doors for co-operation and free trading of goods from/to Turkey and Pakistan. At the same time it will open doors of opportunities for trading between Europe and Pakistan. The pact is considered as a great opportunity for the investors in both countries and expected is to have a sustainable and better access to the markets.

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