November 28, 2007	Wednesday	Ziqa’ad 17, 1428

ISLAMABAD, Nov 27: Pakistan on Tuesday announced 50 per cent reduction on margin of preference basis of existing customs duty on 130 items for Mauritian exporters under the Preferential Trade Agreement to be effective from November 30, 2007.

This margin of preference will increase to in the range of 50 per cent to 100 per cent from November 30, 2008 onwards. Both sides have reached an understanding to convert this PTA into a Free Trade Agreement by the year 2009.

Pakistan is the first South Asian country to have entered into a bilateral arrangement with Mauritius - an Indian Ocean island - for preferential trade. Trade between the two countries has been to the advantage of Pakistan.

An almost similar concession in customs duty has been offered by Mauritius government in margin of preference ranging from 15 per cent to 30 per cent for the first year of the PTA on 102 Pakistan Customs Tariff lines on exports to that country.

These tariff lines include products like flowers, fruits, cereals, tobacco items, salt, marble, carpets, bed linen, textile furnishing articles, electrical machinery and microwave ovens.

Pakistan and Mauritius had inked the PTA on July 30, 2007 covering selected products for preferential reduction in customs duty. Both countries have also finalised the rules of origin for trading of these commodities under the treaty.

The details of the tariff reduction were notified through a customs notification SRO 1151 of 2007 issued here on Tuesday by the Federal Board of Revenue (FBR).

According to the notification margin of preference of 50 per cent of existing tariff rates to 64 products would be effective from November 30, which include flowers, fruits, tea, sugar, and seafood.This preference would increase to 100 per cent on these items from November next year. Similarly, the margin of preference ranging from 35 per cent to 50 per cent and tariff rate quota ranging from 2, 00,000 to 3,00,000 pieces has been granted on 66 textile made up items to the Mauritius exporters.

Mauritian market has good potential for Pakistani exports and can also serve as a gateway for the entire African region. The PTA with Mauritius will ensure that Pakistani products have an edge over the products of other countries in the Mauritian market.

A senior trade official said the PTA would give a new fillip to the long standing bilateral cooperation between Mauritius and Pakistan. The trade relations between the two countries will lead to increased business opportunities both in terms of sustaining existing sectors in Mauritius and creating synergies for the development of new sectors.

The PTA will pave the way for an eventual Free Trade Area between Mauritius and Pakistan. However, there is a need for the visa regime to be liberalised so as to enable entrepreneurs and the people of the two countries to move freely.