ISLAMABAD, June 25: Turkey has enhanced Pakistan’s textile quota by additional 3,000 tons for the years 2002 and 2003 and has promised to provide tariff concessions on Pakistani exports of 20 other products by September this year.

The two sides have, however, failed to sign agreements on exchange of trucks for transportation of goods as Turkey wanted maximum axle load not exceeding 6 tons on which Pakistan’s commerce minister was not sure of the implications. The confusion whether to use international law on trucking business or that of the home countries also persists.

Commerce Minister Abdul Razak Dawood told a news conference here on Tuesday that increase in textile quota would have a financial benefit of $11 million per year to Pakistan.

An agreement to enhance Pakistan’s textile quota was signed during the joint ministerial conference (JMC) last week in Turkey. Pakistani side was led by the commerce minister.

The agreement also allowed Pakistan to export an additional 2,000 tons of denim, technically known as 2(A) category, a textile products with big demand in that country.

“We wanted greater market access for two years (2002 and 2003) but they agreed to increase the quota by another 3,000 tons with the provision that we could put in any category in that limit,” said the minister.

He said that Pakistan also wanted the same facility for the year 2004. Verbally they have agreed but both sides would meet again in September on the subject, said the minister expressing the hope that this would also applicable for 2004.

He, however, said that the government was now considering how to distribute this quota among the exporters. Three options were currently under consideration including allocation on the basis of last year export performance, auction for open competition or first-come first-served basis.

The minister said Pakistan had sought concessions in tariff to the extent of zero duty on exports of its 20 items like leather, cotton yarn, sports, carpets, etc. They have promised to give it a sympathetic consideration and finalize the agreement by September this year when Turkish commerce minister visits Pakistan.

The minister said that he had been seeking Turkish investment, specifically for two years, in fruit and vegetable processing and livestock because it could result in increased production of hides and skins, and dairy and leather exports.

The minister said that Turkey wanted Pakistani businessmen to utilize facilities of its export processing zones for processing or setting up warehouses for exports to the Europe.

He said he would be discussing the opportunity with Pakistani businessmen within this week because Turkey could be an outlet for Pakistani products to the European market.

The $147 million Pak-Turkey trade is in Pakistan’s favour. In 2000-01, Pakistan exported $100 million worth of products to Turkey against imports of $47 million. During first 10 months of 2001-02, Pakistani exports to Turkey were $76 million against imports of $23 million.

The two sides signed three agreements for bilateral cooperation in the field of standard quality measures, small and medium enterprises and removal of hurdles in the customs and tariffs through exchange of delegations.

To a question the minister said the dispute with Turkish firm Bayinder was neither on the agenda nor mentioned in any of the meetings. He said that four big Turkish firms were operating in Pakistan successfully and only one of them had a purely commercial contractual dispute and had nothing to do with bilateral relations.