Pakistan’s exports to Sri Lanka in jeopardy

Despite the Free Trade Agreement (FTA) signed between Pakistan Sri Lanka, the export of commodities like fruit and vegetables from the former to the latter are going to be badly affected as the foreign country has imposed ‘Special Commodity Levy’ on imports.
The recently imposed levy has started affecting the exports of agricultural products to Sri Lanka which may reduce the over all exports of the country, exporters told Profit. It is worth mentioning here that the foreign country is the major importer/buyer of Pakistani Onion, Potato and Kinnow. A Special Commodity Levy was imposed by Sri Lanka on Imported Agricultural Products such as Green Gram, Black Gram, and others to protect its domestic farmers. The levy was imposed for three months.
After the new levy, the duties on many export items from Pakistan have been doubled as the duty on Kinnow has increased from $2.19 per 13 kilograms to $4.47. The duty on Onion has increased from 9 cents to 22 cents per kilogram while the levy on Potato has increased from 4.5 cents to 30 cents per kilogram in the foreign country.
According to sources in fruit and vegetable exporters market, under the new duty the export of Kinnow to Sri Lanka is feared to be reduced by 60 per cent during the current season as the South Asian country is considered a major market for Pakistani fruit. The fresh move is likely to affect the expected 13000 to 15000 tonnes of Kinnow export to Colombo this year, they said. Pakistan had exported almost 35000 tonnes potato last year.
Interestingly, according to sources, there is no additional duty on imports of Pan, Chalia, Coconut Powder, Pineapple, and others from the foreign country in Pakistan. According to the sources, the fresh move of Colombo was against the spirit of the Pak-Sri Lanka FTA which ensures free trade and reduced duty on imports. “The concerned authorities like ministry of Commerce, Trade Development Authority of Pakistan and others should immediately take up the issue with Sri Lankan government to avoid negative impacts on Pakistan exports,” they said.
“All Pakistan Fruit and Vegetable Exporters, Importers and Merchant Association has also planned to visit the Counsel General of the foreign country to express their concerns about the fresh development in Colombo,” they added.