October 25, 2003	Saturday	Sha’aban 28, 1424

ISLAMABAD, Oct 24: Pakistan has decided to start negotiations for entering into preferential trade agreements (PTAs) with two neighbouring countries — Iran, Turkey — to increase its share in the regional trade.

Addressing a press conference on Friday, Commerce Minister Humayun Akhtar Khan said to process the PTA with Iran, a technical team of high officials would visit Tehran in November to negotiate the proposed agreement.

Under the proposed agreement, he said, it was agreed to scale down the tariff to 10 per cent on all products with a negative list of five per cent of total items.

Mr Humayun said that all non-tariff barriers would be eliminated under the PTA and Iranian authorities would also simplify the customs procedures. With these, he said, the bilateral trade would increase further between the two countries.

Statistics showed that currently the bilateral trade had remained heavily tilted in favour of Iran in the last few years. Pakistan’s trade deficit with Iran increased by 135 per cent in 2002-03 to $303.308 million against $129.031 million in the previous year.

In reply to a question, the minister said that lifting of ban on Pakistan’s export of mangoes, kinnoos and wheat would be considered under the PTA. The Iranian government had banned import of these items from Pakistan in 2000 for no obvious reason.

The minister said that the deputy foreign minister of Iran was schedule to visit Islamabad in December to consider the implementation of six agreements, which were already negotiated by the two countries.

Mr Humayun said that successful implementation of the PTA between the two countries would lead to a free-trade agreement very soon.

Answering a question, he said that due to bumper growth in rice production this year it was hoped that the price of rice would slightly decrease, which would result in more export of the commodity, particularly to Iran.

The minister said that he also met officials of the Government Trading Corporation (GTC) to discuss measures for importing rice from Pakistan. He said that the proposal of common border market between the two countries would also come under consideration by the end of the current year.

The minister said that in the next couple of weeks he would fix a date with his Turkish counterpart for starting negotiations on the PTA between the two countries.

Mr Humayun said that Pakistan was also considering the customs procedures of the European Union to get maximum benefit out of it. Recently, Turkey has become a member of the EU customs union.

The minister said that during the forthcoming visit of President Musharraf to China, a similar preferential arrangement with China would also come under consideration. China has recently offered the same facility to India under the Bangkok agreement. He said that in this connection a technical team would visit China.

Mr Humayun said that he would also visit in November ASEAN member countries to look for bilateral arrangement with these countries to increase its share in the regional trade.

Regarding Cancun minister conference, the minister said that it was hoped that the member countries would develop a consensus on major issues by the end of the current year to successfully complete the Doha development agenda.

In reply to a question, he said that textile quotas were bound to end by December 2004. He said that Pakistan could get more benefits for its textile and agriculture products under the multilateral trading system.