ISLAMABAD, May 28: Russia has offered a 25 per cent concession in import duty on around 26 items under its generalized system of preferences (GSP) scheme. Officials told Dawn on Saturday that like many other developing countries enjoying a similar concession in import duty, Pakistani exporters would now require to pay only 75 per cent of the MFN tariff on export of items offered to Russia.
The Russian government has also agreed to grant Pakistan initial negotiating rights (INRs) on certain products. The INRs confer a right of compensation if at a subsequent stage the Russian authorities raise tariffs beyond the bound tariff — a limit beyond which a country can not raise the level of current (applied) import duty.
According to the officials, Moscow had offered these and other concessions to Pakistan to seek Islamabad’s support for an accession to the WTO.
The federal cabinet in its meeting held recently allowed Pakistan’s permanent mission to WTO in Geneva to support Russian entry into the WTO. Pakistan will also start negotiations with Russia on an early preferential trade agreement, which would lead to a free trade agreement (FTA) between the two countries.
Under the Russian GSP scheme, Pakistani exporters could export sheep/goat meat (fresh or frozen) at a GSP tariff of 11.25 per cent, fish meat at 3.75 per cent, molluscs at 3.75 per cent, guavas at 3.75 per cent, mangoes at 3.75 per cent, coffee at 3.75 to 7.50 per cent, tea at nine to 9.75 per cent, coffee/tea mate at 3.75 per cent, spices at 3.75 per cent, rice at 7.5 per cent, and vegetables (selected items) at 3.75, 7.5 and 9.75 per cent.
Pakistani jams, fruit jellies and marmalades would attract 3.75 per cent duty on export to the Russian market; fruit, vegetable juices at 3.75, 7.5 and 9.75 per cent; soups, broths and preparations thereof 3.75 pre cent; tobacco (unmanufactured) 3.75 per cent; pharmaceutics (selected items) 2.25, three, 3.75 and 4.88 per cent; silk 3.75 per cent; wool 2.25 per cent; flax 7.5 per cent; woven fabrics of flex 7.5 per cent; woven fabrics of jute at six per cent; woven fabrics of other vegetable textile fibre 7.5 per cent; felt 7.5 per cent; twine, cordage, rope and cables 7.5 per cent; carpets and other textile floor coverings (selected categories) 11.25 per cent; and jewellery at 11.25 per cent.
Under the normal tariff regime, Russia offered to reduce tariff to 15 per cent on leather products; 15 per cent on articles of apparel, knitted or crocheted; 17.5 per cent on articles of apparel, not knitted or crocheted; 13 per cent on sacks and bags used for packing; 15 per cent on carpets and other textile floor coverings; 15 per cent on jewellery; 10 per cent on toys, games, sports requisites and parts thereof; 12.5 per cent on furniture; 15 per cent on preparations of cereals, flours, etc; 10 per cent on fruit and vegetable juices; and 15 per cent on footwear.
Products on which the INRs were inducted by Russia mainly includes rice, food preparation for infant use, tobacco, medicaments, article of apparel and clothing accessories, bleached or unbleached woven fabrics of synthetic filament yarn, carpets, tracksuits, ski suits and swimwear of man-made fibre, cotton bedlinen, bed sheets, articles and equipment for general physical exercise.
