Turkey links FTA to market access for auto sector

Published
9

ISLAMABAD: Turkey has linked finalisation of a Free Trade Agreement (FTA) with market access for Turkish auto sector in Pakistan, an official told Dawn on Tuesday.

Both sides have already missed the deadline of February 2017 to finalise the FTA.

The last round of talks on proposed FTA, which covers trade in goods and services and has a chapter on investment, was held in December 2016.

An official source told Dawn that high-ups of the Turkish government have recently conveyed to Islamabad that the FTA will only be finalised after Islamabad opens up auto sector for Turkey’s exporters.

Turkey has linked giving market access to Pakistani textile and clothing sectors with auto sector’s liberalisation. Data shows that Pakistan’s exports to Turkey declined by almost 19pc annually after the imposition of additional duties by Ankara in 2011. Exports dipped to $311 million in 2015 from $873m in 2011.

Pakistan also imposed regulatory duties on imports from all countries including Turkey.

The official said, if additional tariffs are included, trade weighted tariff imposed by Turkey on imports from Pakistan increased from 7.2pc to 18pc, while tariff imposed by Pakistan on Turkish goods raised to 15.8pc from 13.5pc.

An analysis showed that Turkey imposed additional duty on 1,880 products. As a result of these measures, Pakistan’s 205 exportable products are facing additional duties. “This constitutes 40pc of Pakistan exports to Turkey comprising of textiles, garments and leather,” the analysis show.

Contrary to this, Turkey exports of 216 products face regulatory duties, which constitute 17pc of Turkish imports into Pakistan.

The additional duties were imposed on 207 tariff lines of Pakistan.

Published in Dawn, March 8th, 2017

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Terrorist havens
07 Aug, 2026

Terrorist havens

DESPITE the use of both carrots and sticks by the international community, the Afghan Taliban refuse to cut their...
Mineral wealth
07 Aug, 2026

Mineral wealth

GROWING American interest in Pakistan’s critical minerals is no longer speculative. According to US diplomats,...
Growth denied
07 Aug, 2026

Growth denied

THE Sindh government’s agreement with the World Bank to combine health, nutrition, sanitation, social protection...
Need for dialogue
06 Aug, 2026

Need for dialogue

THE interior minister’s comments at an Islamabad seminar last week have sparked many a conversation about the ...
Bad press
06 Aug, 2026

Bad press

THE government’s move to impose restrictions on international media will not only alienate the foreign press, it...
Automobile concerns
06 Aug, 2026

Automobile concerns

PAKISTAN’S automobile industry is at a critical juncture. Sharp cuts in tariffs on the import of completely built...