ISLAMABAD, Aug 21: Pakistan and Indonesia on Thursday signed a joint statement on comprehensive economic partnership (CEP) for strengthening trade ties between the two countries.

Commerce Minister Humayun Akhtar Khan and Indonesian Trade and Industry Minister Ms Rini M. Sumarno Soewandi signed the statement on behalf of their respective countries here at commerce ministry.

Indonesia and Pakistan recognized a huge potential for developing mutual trade between the two countries.

Taking into account the potential existing in both the countries, the two sides have decided to encourage their institutional and business communities to explore ways and means so as to increase the trade between the two states.

Under the CEP both sides agreed to cooperate in the field of quality control and standardization both in agricultural and non-agricultural products.

They also agreed to exchange business information and trade delegations for effective government-to-government, business-to-business and people-to-people contacts.

It was also agreed that they would cooperate at the levels of trade promotion organizations and apex bodies of the chambers of commerce and industry. The two sides recognized the need to reduce tariff and eliminate non-tariff barriers.

Under CEP both sides agreed to initiate the process of establishing comprehensive economic partnership that would eventually lead to a free trade agreement.

And the two sides further agreed to bring any trade disputes between them to bilateral consultation prior to invoking any mechanism under dispute settlement body of the World Trade Organization (WTO).

APP adds: Indonesian Trade Minister while talking to newsmen said “there is tremendous scope of cooperation between the two countries and we want to promote cooperation in the economic and trade sector”.

Replying to a question, she said Free Trade Agreement between the two countries would be finalized within three to six months time.

Answering another question about WTO regime, she said, both the countries may evolve a viable strategy to jointly tackle the issue and form a policy, protecting their interests.

Humayun Akhtar Khan said Pakistan valued its relationship with Indonesia which had extended full support in the hour of need.

“We can cooperate with each other in many areas particularly in the agriculture sector. Pakistan can enhance export of rice, cotton and yarn to Indonesia which is making huge production of garments and sugarcane,” he added.