December 19, 2003	Friday	Shawwal 24, 1424

a ISLAMABAD, Dec 18: Pakistan and Indonesia have agreed to reduce customs duty on 200 tradable items at sixth digit level for increasing the flow of bilateral trade between the two countries.

Official sources told Dawn on Thursday that the decision to this effect was reached during the Indonesian President Megawati Soekarnoputri visit to Islamabad recently.

Elaborating further, the officials said that Pakistan and Indonesia would exchange soon request list of 100 items each by the two sides at the sixth digit level (the ranking of this category of items on the list containing all categories of items) for consideration of reduction in customs duty on its import in the respective countries.

These lists would be discussed at length during the meeting of senior officials of the two countries in the first quarter of next year, the officials added.

The top priority items of Pakistan for seeking duty reduction from Indonesia are most likely: rice, wheat, sugar, kinoo, dates, onion and potatoes. And the Indonesian major items for seeking duty reduction are: palm oil, tea, betel-nut and brooms.

According to the officials, both sides agreed to process the establishment of comprehensive economic partnership (CEP) that would eventually lead to a free trade agreement (FTA).

For this purpose, the officials said both sides would establish a task force/technical team to identify selected products/commodities for duty consideration.

According to the revised trade agreement signed between the two countries on December 17, 2003, a copy of which was made available to Dawn, both sides agreed to consider their mutual interest in strengthening and developing trade ties; expanding and diversifying commercial exchanges and enhancing the level of trade cooperation based on equality, non-discrimination and maintenance of mutual interests.

This agreement has superseded the one signed between the two countries in the year 1964. The revised agreement would remain in force for a period of five years from the date of signing, which would be automatically renewed for a subsequent period of 5 years unless either party intended to terminate this agreement.

In the agreement, both sides also agreed to establish a joint trade committee comprising representatives of government officials and businessmen of the two countries. The committee would meet annually and alternately in the territory of each country for finding solution of the problems and expanding bilateral trade between the two countries.