Trade ties with Turkey

Published March 4, 2018

TRADE talks between Pakistan and Turkey are nearing collapse following seven rounds of dialogue for a free-trade agreement. It is astonishing to note the extremely tough line that Ankara has taken towards Pakistan throughout these talks, with its steadfast refusal to reduce additional duties on products that have a high export potential in Turkish markets and that were imposed in 2011. Those additional duties stifled Pakistan’s exports to Turkey, which dropped by a huge 69pc in the six years till 2017. Today, Pakistan’s imports from Turkey stand at around $300m, whereas our exports are around $200m — in fact, the export potential could be above $1bn. What is even more striking is that this near collapse of Pakistan’s exports to Turkey, and the prolonged impasse at the FTA talks, came at a time when there was a much-hyped warming of ties between the two countries. Turkish President Recep Tayyip Erdogan became the first head of state to address a joint sitting of the Pakistani parliament thrice. On his last visit, in November 2016, Pakistan took the extraordinary and controversial decision to close the Pak Turk schools, linked to the Turkish president’s political rival, on the request of Ankara, besides ordering the expulsion of teachers and members of staff, numbering some 450, from the school system.

In his November 2016 address to parliament, Mr Erdogan spoke effusively of Pakistan and Turkey as “two brotherly countries, not in words but in real meaning”. He highlighted the fight against terrorism as the key area of cooperation between both countries in the present context, and outlined areas of cooperation between Pakistan and Turkey, talking of special projects and development assistance. He mentioned the word ‘trade’ once only, and then only in passing. The address was the clearest indication that, couched in the rhetoric of brotherly ties, Ankara is actually seeking a highly focused relationship with Pakistan, and the broadening of trade ties is perhaps not a priority. Our political and military leadership both hailed the address, but the people involved in the FTA negotiations, which ought to be Pakistan’s top focus in its growing ties with the Turkish government, must have come away very disappointed. No doubt, Turkey is an important country for Pakistan, but trade must take precedence over other ties in all contacts between the respective leaderships of the two countries.

Published in Dawn, March 4th, 2018

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