Free Trade Agreement (FTA) between Pakistan and Sri Lanka boosted trade between the two countries by 133 per cent from $147 million to $342 million in six years.
This increase in volume of trade was noted in the fourth technical level two-day meeting on Pakistan-Sri Lanka Free Trade Agreement (PSFTA) which concluded in Colombo. The Secretary Commerce Zafar Mahmood and Sri Lankan Secretary for Industry and Commerce Tilak Collure led the discussions. According to press release issued by the Ministry of Commerce the two delegations deliberated on a number of mutually important matters. With regards to addressing several implementation issues in the agreement both sides decided that Sri Lanka would allocate import of entire basmati rice quota of 6,000 MT agreed under the PSFTA in 2005 to the private sector from 2012.
It was decided that Pakistan would restore the same level of competitiveness as agreed before for Sri Lankan betel leaves by adjusting the current margin of preference and would consider granting concessionary market access for electrical items such as electrical switches and bottle cooling machines.
Pakistan asked Sri Lanka to remove crude coconut oil from their No Concession list as agreed earlier while Sri Lanka would consider categorizing onyx products imported from Pakistan as handicrafts. It was decided that Sri Lanka would continue its discussion with Pakistan for the purpose of pursuing its export interests in automotive rubber products sector. Sri Lanka Export Development Board and Trade Development Authority of Pakistan (TDAP) would consider signing an agreement for collaboration and promotion of trade.
Businessmen from both countries will visit trade exhibitions to be held in Pakistan and Sri Lanka. Sri Lanka would also look into the complaints of difficulties encountered by Pakistani exporters of cement and take appropriate action in consultation with the relevant authorities in Sri Lanka. Pakistan and Sri Lanka would take early action to activate the Agreement on Cooperation and Mutual Administrative Assistance in customs matters.
The two sides also discussed the modalities and appropriate institutional mechanism for further expanding the existing commercial and economic cooperation between them, with special emphasis on investment, services, customs cooperation, dispute settlement and further deepening of the FTA. The two sides agreed to meet at an early date to review the progress of the implementation of the decisions reached at the discussion.
