ISLAMABAD, March 1: Pakitan and the European Union (EU) have decided to set up a joint commission under the third-generation agreement — a trade plus treaty — to discuss market access issues for enhancing trade, said commerce minister Humayun Akhtar Khan here on Thursday.

Both the sides have nominated members of the joint commission under which a working group on trade will be established in spring next, said commerce minister while speaking at a press conference here on Thursday.

Mr Khan said Pakistan and the European Union agreed that the working group would start discussion on market access not precluding a free- trade agreement.

The European Union parliament has already ratified the agreement, added the minister.

This does not mean that the EU and Pakistan have agreed to talk on the FTA, like they had with India, but a forum has been designated by the EU and Pakistan to start discussion on market access, the minister said, quoting the relevant part of the agreement.

Responding to a question, the minister said Pakistan cannot say that the European Union has declined to talk to Islamabad on FTA.

He ruled out such kinds of reports, which, he said, were factually incorrect.

The EU has apparently made economic criteria for selection of country to negotiate a free-trade agreement with them.

This criterion includes tariff barriers and non-tariff barriers and size of economy. On the basis of this approach, the European Commission has picked up a few countries to negotiate FTA with them.

The EC has announced that they would start negotiations on FTA with four to five countries, including South Korea, Asean and India, etc., though negotiations have not yet started.

To a question, the commerce minister said that Brussels has not said that they would not go for an FTA with Pakistan.

We are trying to tell the European Union about the economic advantages to be accrued out of this agreement in addition to political requirements for Pakistan to improve its economy for having a better market access for its products. The dialogue is very much on the issue, the minister said.

The minister said that the government at a higher level had already been lobbying with the EU states to seek their support on the issue.

I am not saying we do not want unilateral concessions from the European Union under the FTA.

We will also give similar concessions to the EU. We have given concessions to China on equipment under FTA, which would replace the import of machinery imported from Europe.

It is in the Europe’s interest to consider Pakistan for the treaty, the minister asserted.

Answering a question, the minister said that Pakistan hoped that the US would soon table a legislation for establishment of reconstruction opportunity zones.

He said his ministry was also working on a plan to enhance growth in export of commodities.

To a question, he said many steps would be taken for increasing trade with Afghanistan.