YNFX | 24 January 2017
Pakistan, Turkey to hold sixth round talks on FTA
The sixth round of the negotiations on Free Trade Agreement (FTA) between Pakistan and Turkey would be held through digital video meeting in coming week. Both the sides will hold discussion on agreement on goods, services and on investment. The agreement in this regard would be signed in coming months of April 2017.
Pakistan’s trade balance started decreasing at annual rate of 19 percent after that additional duties imposed by Turkey in 2011, said a senior official from Ministry of Commerce. Pakistan’s exports declined from US $ 873 million in 2011 to $ 311 million in 2015 because of additional duties imposed by Turkey on its foreign imports on all countries including Pakistan.
Pakistan’s major exports to Turkey are denim PET, ethanol, cotton yarn, fabric and garments, carpet, rice, leather, surgical instruments and sports good, chemicals. While major imports from Turkey are manmade textiles, towels, steel structure, tanning and plastic chemicals, processed milk and whey.
The additional tariff imposed by Turkey have a targeted impact on Pakistan’s major exports, adding that Turkey levied additional duty on 1880 products as same as Pakistan’s top 205 exports to turkey face additional duty.
Pakistan imposed Regulatory Duty (RD) on 1312 products, Turkey has exports to Pakistan in 261 of products that face RD. This constitutes 17 percent of Turkish imports into Pakistan.
After the signing of new FTA with Turkey both the countries will have positive trade balance.