Islamabad, August 31, 2013 (PPI-OT): Indonesia and Pakistan have agreed to operationalise the Preferential Trade Agreement with effect from 1st September, 2013. The Indonesia-Pakistan Preferential Trade Agreement (IP-PTA) was signed in February, 2012.
Operationalization of PTA follows the signing of a Mutual Recognition Agreement (MRA), on plant quarantine and SPS measures, between Indonesia and Pakistan, on 30th August 2013, and acknowledging Pakistan as a Pest Free Area for Kinnow. Indonesia has also allowed the entry of this product through the Tanjung Port of Jakarta. Through these steps, Pakistani agriculture products will gain a greater market access in Indonesia.
Under the IP-PTA, Indonesia would grant market access, at preferential rates, for products of export interest for Pakistan, including fresh fruits, cotton yarn, cotton fabrics, readymade garments, fans (ceiling, table, pedestal) sports goods (badminton and lawn tennis rackets), leather goods and other industrial products. Indonesia has also granted market access to Kinnow from Pakistan at 0%, which is expected to significantly enhance the export of this product to Indonesia.
Similarly, Pakistan would provide market access, at preferential tariff rates, for products of export interest for Indonesia. Pakistan has extended the same concession for Palm Oil products from Indonesia as provided to Malaysia under Pak-Malaysia FTA, i.e. 15% Margin of Preference (MoP) over the MFN tariff. This would help in decreasing the prices of vegetable ghee, cooking oil e.t.c in the country and have a positive impact on the overall economy of the country.
It is expected that the mutual trade arrangements with Indonesia would also contribute to enhance our trade linkages with other economies in the ASEAN region and help in the diversification of our export markets.
For more information, contact:
Haji Ahmed Malik
Principal Information Officer
Press Information Department (PID)
Tel: +9251 925 2323 and +9251 925 2324
Fax: +9251 925 2325 and +9251 925 2326