KARACHI, May 5: Pakistan is right now involved in negotiations for finalization of five regional trade agreements (RTAs) with as many as two dozen countries.
In his series of lecture to the officers of the Trade and Commerce Group at the Export Promotion Bureau the Vice President of the Federation of Pakistan Chambers of Commerce and Industry Engineer MA Jabbar said that RTAs trend gained currency after the failure of fifth ministerial conference to evolve a consensus on Doha Development Agenda. There are more than 200 RTAs functioning or in process of finalization in the world.
The non-settlement of multilateral issues and agreements, he pointed out, have left the world to pick up the available choices and go for RTAs that serve the interest of the member countries.
But the WTO charter stipulates the guiding principle all members be given same treatment in respect of trade whereas the RTAs serves the interest of only the member and signatory countries.
Pakistan, he said, was negotiating Free Trade Agreement (FTA) with Sri Lanka, Iran, Bangladesh and Kenya; Preferential Trade Agreement (PTA) with China under which preferential tariff had been obtained for 777 items and similar concessions are being given to 192 items.
Pakistan has recently signed Safta with six Saarc members early this year and is in process of concluding Trade and Investment Framework Order (TIFA) with the US. Pakistan is also signatory with all ECO members to reduce maximum tariff to 15 per cent in eight years.
Jabbar also offered an overview of the flow of trade in various RTAs and informed officers that NAFTA had within its ambit 67 per cent inter regional trade which accounts for more than 15 per cent share in world trade.
The EU has over 60 per cent intra regional trade which is 25 per cent of world trade, ASEAN has 22.4 per cent, GCC has 5.1 per cent and Saarc only 4.9 per cent.
