ISLAMABAD, July 19: Turkish Minister of State for Foreign Trade Kursad Tuzmen has said that Ankara is considering a proposal to sign a Preferential Trade Agreement (PTA) with Islamabad to further increase the volume of bilateral trade between the two countries.
He said the two countries would soon work out the procedures and modalities of the proposed agreement.
Talking to Dawn after the conclusion of ECO Trade Agreement in Islamabad, the Turkish minister expressed the hope that the PTA would be finalized with Islamabad within a period of two years.
Following the PTA, Pakistan’s exports to the European Union will get a boost as Turkey is currently striving to enter the EU. Following its formal entry into the EU, Ankara will facilitate added access to Pakistani products in EU markets.
The PTA will also result in a greater market access for Pakistani leather goods, sportswear and chemicals in Turkish markets.
With the signing of this treaty with Pakistan, he said, a stage would be set for negotiating a free trade agreement (FTA) between the two countries to give further boost to bilateral trade.
He said the average annual bilateral trade stood at $150 million, which he said was very limited and should be increased so that business communities of the two countries could mutually profit from the arrangement.
The Turkish minister said there was a great potential for further increasing the volume of bilateral trade between the two countries.
The minister suggested that for achieving the massive growth in trade, the governments of two countries would have to reduce both tariff and non-tariff barriers. They will have to provide incentives to attract investors to carry out investment in many sectors.
He said Turkey had expertise in shipping and road transportation network, which he said would facilitate the transit trade to the Central Asian Republics.
The minister also said Turkish banks were interested in opening their branches in Pakistan. He said Turkey also had expertise in export processing zones and it would share its experience with Pakistan in construction activities, infrastructure and housing projects.
“We want to set up joint ventures with Pakistan in the third country like Afghanistan and Iraq,” he said.
Answering a question, he said Turkey would facilitate Pakistani businessmen through land and sea routes to enhance their trade with the neighbouring countries.
The minister said Turkey would hold a trade fair in Karachi in October, in which a number of Turkish companies and trade mission would display their products. He said the fair was aimed at seeking greater market access for Turkish products in Pakistan.
According to official figures, the bilateral trade between the two countries stood at $148.138 million during the year 2000-01 against $167.610 million in 1999-2000, showing a decline of 0.116 per cent.