Daily Times (Pakistan), Thursday, March 02, 2006
Cabinet may approve new trade accord with Indonesia today
ISLAMABAD: The federal cabinet is expected to accord ex-post fecto approval to the signing of Framework Agreement between Pakistan and Indonesia on Comprehensive Economic Partnership (CEP) and its ratification on Thursday.
Pakistan and Indonesia had decided to enter into Comprehensive Economic Partnership (CEP) to promote bilateral trade and economic relations between the two countries around two years ago. After constructive dialogue between the two countries, the Comprehensive Economic Partnership has been finalized and with approval and ratification, it would enable the signatories to implement it for their mutual benefits.
Under the CEP, both the countries would reduce their tariffs on agreed tradable items to enhance the existing trade volume between them. Pakistan is expected to get duty reduction on the export of Kino to Indonesia under this CEP.
At present the Indonesian government is charging customs duty of around 75% on import of Pakistani Kino and the duty on Chinese Kino is far less than Pakistan. Pakistan had requested the Indonesian side to favourably consider the reduction of duty on Pakistani Kino.
The official said that during the bilateral trade talks, the Indonesian side had conveyed its willingness to reduce the duty on Kino. The signing of this instrument with Indonesia will help Pakistan to enhance its Kino exports apart from other items.