ISLAMABAD, March 21: Pakistan and European Union (EU) will take decision on setting up a study group for examining the feasibility of a free trade agreement (FTA) in May this year.

This understanding was reached in a meeting held on Wednesday between Commerce Minister Humayun Akhtar Khan and EU Trade Commission Peter Mandelson on the sidelines of the Group of 33 developing countries ministerial meeting in Jakarta.

An official announcement released here by commerce ministry stated that during the meeting Mr Khan stressed the need for promotion of bilateral trade and apprised Mr Peter about the problems being encountered by Pakistani businessmen.

At the forthcoming bilateral meeting of the newly-established Joint Commission in May a decision would be taken about setting up a study group for examining the feasibility of a FTA between EU and Pakistan.

He also invited Mr Mandelson to visit Pakistan at an early date. The EU trade chief also lauded Pakistan’s positive role in the current Doha negotiations.

Mr Humayun also met Minister of Trade of Indonesia Mari Elka Pangestu. They discussed ways and means to make progress on Preferential Trade Agreement (PTA) and for expanding the scope of preferential arrangements to FTA. The Indonesian minister responded that they were already conducting a study to see how quickly such an arrangement could be finalised.

Mr Khan also held detailed consultations with Director General of WTO Pascal Lamy.

He apprised Mr Lamy that Pakistan was expecting an ambitious cut in tariffs on products of its export interest such as textiles and clothing in the current negotiations.

Mr Lamy said that he fully understood the sensitivities of Pakistan and also appreciated Pakistan’s positive role in all areas of negotiations.