Pakistan has conveyed to India that the latter should not object the European Union’s (EU) trade concession to the former at the World Trade Organisation (WTO) as the facility of $2-3 million worth of trade in the global market will not affect the huge economy of Delhi.
As a positive gesture, the neighbouring country should take back its reservations, based on traditional animosity, to encourage ongoing talks and negotiations on various issues between the two countries. These views were expressed by Trade Development Authority of Pakistan (TDAP) Chief Executive (CE) Tariq Iqbal Puri, during an exclusive interview with Pakistan Today recently.
TDAP, he said, has already forwarded a summary related to an agreement and understanding with its counterpart in India, to cabinet for approval, he added. Besides, the authority would also attend some fairs and shows in India to explore new markets for Pakistani products. The invitation has also been forwarded to the Indian side for displaying their products in the forth coming Expo Pakistan 2011, to be held in October this year.
Talking about various Pak-China business forums and fairs held in China so far, Puri said, different Chinese firms, especially related to mines and minerals and corporate agriculture and farming sectors, have expressed interest in sharing their expertise and technological assistance in the respective fields in Pakistan. The latest machines and technology, used in the Chinese agricultural and mineral sector are amazing, and according to Puri, the transfer of such technology and expertise would drastically improve the qualitative production in the mentioned sectors.
While celebrating the 60th year of Sino-Pak friendship this year, TDAP and its counterpart in the foreign country, China Council for Promotion of International Trade (CCPIT) are actively holding various business forums and trade fairs in different provinces of the foreign country. “Though we have tried to obtain a greater market share in western countries during the last 60 years, we had never explored the trade potential in various parts of the neighbouring country,” he said, adding that the Chinese government always encourages its public as well as private sector to take actively participate in projects in Pakistan.
According to Puri, China’s public and private sector was currently involved in over 250 projects in Pakistan ranging from mega to minor and from strategic to ordinary businesses. The bilateral trade level, he said, has also touched $8.6 billion in 2010, displaying a growth of 28 per cent. Pakistan’s exports exceeded $ 1.7 billion showing a growth of 37 per cent. In the recently held 4th South Asia Trade Fair jointly opened by the Governor of the Yunnan Province, Chinese visitors visited Pakistani stalls and appreciated the quality of products displayed.
The visitors greatly appreciated Pakistani products especially those in furniture, leather, textiles, carpets, jewelry, kitchen ware, brass and herbal products, he added. In reply to a query whether Pakistan was at a disadvantageous position under the existing Pak-China Free Trade Agreement (FTA), he said “ China is such a huge market that the balance of trade will ultimately favour it but Pakistan’s share of trade is also on the rise.”
Talking about the proposed amendments in the FTA, he said, the Ministry of Commerce has constituted a Committee under his chairmanship, with the mandate to interact and consult with stakeholders in order to develop a comprehensive negotiation strategy for the Phase II of the Pak-China FTA, while outputs from all concerned stakeholders have so far been obtained to tilt the agreement with greater favours for Pakistan.
According to Puri, the formulation of a Comprehensive Negotiating Strategy entails a two pronged approach i.e. an ‘offensive’ aspect, wherein a part of the strategy shall focus on enhancing the level of market access of Pakistani exports to China, and a ‘defensive’ component, wherein sectors and products would be identified with a view to enhance the level of market access of Chinese exports to Pakistan.
To another question about whether the export target of the country during 2011-2012 would be reduced due to the expected decline in cotton prices internationally, he said that the country was expected to fetch around $27 billion and the target for the current financial year would be fixed accordingly. He also hoped that the country would register a record export figure of around $25 billion till completing the final report of the last financial year.
He said that a proposal prepared by TDAP regarding the forthcoming trade policy has already been forwarded to the Ministry of Commerce. To another question, the TDAP CE said that a large number of Chinese companies would display their products in the Expo Pakistan while the foreign firms and buyers from India, Russia, France, Iran, Japan and other countries from Europe, Asia and Africa would also attend the important event. As the Chinese government has already facilitated Pakistani exporters and traders in over 20 trade related events in Beijing, Islamabad, while reciprocating Chinese facilitations, would also provide full support and space for companies of the neighbouring country.
In reply to a query, Puri said, the work on 12 important projects announced for promotion of trade in the country would soon get started, besides arrangements of foreign investment and third party validation. Furthermore, he said, TDAP has also focused on the eastern part of the world, especially China, Russia and Central Asian States which have been neglected during the for more than 60 years. Frequent exchange of visits of head of states from these countries and other trade delegations are part of the new initiatives, he added.
Bilateral trade with China touches $8.6 billion
