ISLAMABAD: Pakistan and Turkey will soon commence negotiations on a free trade agreement (FTA) for increasing the volume of bilateral trade.

“We have agreed to give a thrust to bilateral trade and investment cooperation. We are embarking on new trade liberalisation initiatives and will work towards an FTA,” Prime Minister Nawaz Sharif told reporters after co-chairing the fourth session of the Pak-Turkey High Level Strategic Cooperation Council (HLSCC) with his Turkish counterpart Ahmet Davutoglu here on Wednesday.

The council is the highest-level bilateral political forum which makes decisions about ties between the two countries.

Mr Davutoglu is on a two-day visit to Islamabad along with a high-level government delegation and a business group for talks with Pakistani leadership on promoting economic and strategic ties.

The proposed FTA will cover trade in goods and services and investment. The negotiations will commence after the completion of internal procedural requirements by the two countries.

Speaking at a joint press conference with Mr Sharif, the Turkish premier sounded optimistic about an early start of the talks on FTA. “We will sign the free trade agreement as soon as possible,” he said.

Currently the annual volume of bilateral trade is less than $1 billion. The two countries have set the target of first increasing it to $3bn in a couple of years and then to $5bn-$10bn range.

The next meeting of the Joint Business Council is being planned for this year in Turkey to supplement efforts for enhancing bilateral trade.

Mr Davutoglu stressed the need for better transport links between the two countries and said several proposals, including increasing the frequency of flights of the national carriers and improving rail connection and maritime transportation, had been discussed.

Some of the steps agreed for improving transport connections included a meeting of the Joint Road Transport Commission later this year for enforcement of the Bilateral Road Transport Agreement, financing of ECO Container Train for the first six months, exploration of possibilities of joint ventures between Pakistan Railways and Turkish Railway Machinery Company, Turkish Wagon Industry and Turkish Locomotive Industry, a meeting of port authorities to develop vessel tracking system and a meeting of civil aviation authorities to discuss an increase in the frequencies of flights between the two countries.

The two sides signed 11 memorandums of understanding aimed at bolstering cooperation in economic and social sectors.

The two prime ministers witnessed the signing ceremony of the agreements.

PM Sharif said: “We reaffirmed our joint commitment to continue to transform our special relationship into a strong strategic partnership.”

Importantly, a strong follow-up mechanism for overseeing the implementation of the agreements was also agreed.

“The joint working groups will ensure effective implementation and follow-up of the decisions taken at the HLSCC meetings,” the joint declaration issued by Pakistan and Turkey said. The six joint working groups of the council – on finance and banking, trade, energy, transport and communications, education and culture and tourism -- will develop and implement specific programmes and projects.

SECURITY COOPERATION: An agreement on intensifying defence and security cooperation was echoed by the two prime ministers as Mr Davutoglu said the two countries would continue to support each other and Mr Sharif noted that “security, defence and counter-terrorism cooperation remains robust.”

An elaborate programme for defence and security cooperation covering cooperation in the fight against terrorism and extremism, organised crime and drug trafficking, police training and capacity-building, exchanges of personnel and sharing of experience, joint military exercises and defence dialogues was agreed.

Besides envisaging expansion of politico-military cooperation, the joint declaration also mentioned “joint defence production and related research and development activities”.

The fact that Mr Davutoglu opened his Pakistan trip with a meeting with Army Chief Gen Raheel Sharif shows the importance Turkey attaches to defence and security ties with Pakistan.

“During the meeting matters related to regional security and bilateral security and defence cooperation and collaboration between two brotherly countries were discussed,” said the ISPR in a statement.

“We stand by our brothers. Pakistan’s security is Turkey’s security,” Mr Davutoglu was quoted by the Inter Services Public Relations as having told Gen Sharif.

POLITICAL CONSULTATION/DIALOGUE: It was agreed that the next meeting of the HLSCC would be held in 2016 in Ankara.

It will be preceded by meetings of the foreign ministers (in Turkey) and foreign secretaries (in Islamabad) later this year.

During the dialogue, the Pakistani side was able to secure a commitment from the Turks that they would support efforts for comprehensive reforms of the United Nations Security Council to be sought after “widest consensus possible”.

A renewed push for expansion of the UNSC is expected later this year. Islamabad has begun a counter-diplomatic push to protect its interests.

Published in Dawn February 18th , 2015

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