US agrees to provide preferential market access to Pakistan

[LahoreEstate]

ISLAMABAD: United States has agreed to consider Pakistan’s demand for allowing market access on preferences to compensate trade losses due to war on terror as well as forming long-term partnership for promotion of bilateral trade, Salman Ghani, Federal Secretary Commerce informed here on Monday.

At the conclusion of the meeting of advisory council held to solicit proposals from trade bodies for finalising Trade Policy 2009-12, Secretary Commerce informed that during the recent visit of US issues related to trade and Reconstruction Opportunity Zones (ROZs) were discussed at length.

He said that Pakistan has demanded US to allow immediate market access to compensate trade losses the country has sustained due to the war on terror. The US authorities have not expressed any denial to the Pakistani demand. Both sides have agreed to form a Joint Study Group to workout modalities of market access on preferences long-term partnership for promotion of bilateral trade. He said that Joint Study Group is expected to be formed next month representation from both sides. He informed that the export target of $22.1 billion was too ambitious as the world trade, according to the World Trade Organization’s figure, is growing by 6 percent and our export target envisages 15 percent growth. Its now difficult to achieve this ambitious export target in ongoing fiscal year and exports are likely to be at the level of last fiscal, he added.

Explaining the reasons of low growth in exports, secretary informed that demand is shrinking world wide due to the low credit demand and financial crisis especially in US and European Union, which are the major trading partners of Pakistan. He said that as per past practice the Ministry of Commerce would submit its tariff proposals to Federal Board of Revenue in a meeting to be held next week. MoC want tariff rationalisation and more liberalised trade regime in the country, as the current tariff structure is not enhancing exports.

He said MoC has decided to prepare Trade Policy Framework for the next three years based on medium-term initiatives. To finalise the proposals, the ministry has decided to hold detailed discussion with its all stakeholders. After the advisory council’s meeting the MoC would hold separate meeting with all major exporters associations in the head offices to complete this process during June so that a policy with its implementation strategy that would also be finalised in consultation with stakeholders. sajid chaudhry

http://www.dailytimes.com.pk/default.asp...2009_pg5_4