ISLAMABAD, July 21: Commerce Minister Humayun Akhtar Khan and foreign ministers of Mercosur trade bloc signed the Framework Agreement on Trade in Cordoba, Argentina on Friday.

According to a message received here from Buenos Aires, the signing of the agreement will initiate the process of negotiations between Pakistan and Mercosur member states to conclude a Preferential Trade Agreement, which will ultimately lead to a Free Trade Agreement.

The volume of trade between Pakistan and members and associate members of Mercosur, which is currently hovering around $250m per annum, is bound to increase.

The prestigious signing ceremony was part of the bi-annual Mercosur Summit that started on Thursday.

Addressing the gathering of ministers and senior officials of the member and associate countries of Mercosur, Mr Humayun highlighted Pakistan’s achievements in the economic field which have transformed it into a hub for trade with South Asia and Central Asia.

Recalling that the idea of a free trade agreement with Mercosur was part of President Musharraf’s landmark visit to the Latin America in 2004, the minister underscored the importance of giving substance to the traditionally cordial relations between Pakistan and Mercosur countries.

He referred to Pakistan’s similar trade initiatives with Sri Lanka, China, Malaysia and Singapore and said that the agreement with Mercosur would further strengthen the South-South cooperation.

The minister said that the signing of the framework agreement would open new vistas in trade and economic relations of Pakistan with this region.

"I wish to impress upon the leadership of the Mercosur the need for a deeper economic partnership between the developing economies. In addition to the advantages this will bring to our respective economies, cooperation in the economic arena will build regional stability and accelerate economic growth," he said in his statement at Mercosur summit.

He thanked the Mercosur member states -- Argentina, Brazil, and Paraguay & Uruguay -- for their support to Pakistan for signing of the framework agreement and for extending him the invitation to attend the summit.

"The purpose of my journey to the region is a step in that direction and I am glad to note that I have been greatly encouraged by a highly positive response of your governments towards that end," he remarked.

He expressed the hope that the Mercosur would provide a powerful platform for leaders of the region to share views on economic challenges and devising strategies to address these challenges.

Earlier, the foreign minister of Argentina, chairing the ministerial meeting, welcomed Pakistan’s institutionalised association with the bloc.

He paid rich tribute to Pakistan’s significant contribution to the world economy and its role in addressing the international trade issues.

Humayun Akhtar Khan also held bilateral meetings with foreign ministers of Mexico and Peru and Argentina’s vice minister for international trade and economic relations during the day.—APP