ISLAMABAD: (APP) In an effort to enhance bilateral trade , Pakistan and Turkey have agreed to eliminate 85 percent of tariffs.
Both sides have also agreed to complete Free Trade Agreement (FTA) negotiations by the end of current year to formally enact the agreement, said a statement issued here on Thursday.
The understanding was reached between two countries during 4th Round of Pakistan-Turkey FTA negotiation, which was held in Islamabad from August 29-31.
Pakistan side was headed by Robina Ather, Additional Secretary (Trade Diplomacy), Ministry of Commerce and Husnu Dilemre, Deputy Under Secretary, Ministry of Economy, Government of Turkey led the visiting delegation.
Both countries also agreed that the elimination of 85 percent tariffs shall include regulatory duties and additional duties in case of Pakistan and additional duties and mass housing fund duties in case of Turkey.
It is hoped that Pakistan's export to Turkey is likely to increase by $500 to $600 million in short span of time.
Current trade volume between two countries was recorded at around US$ 500 million by 2014-15, with export to Turkey recorded at US$ 309.19 million and imports at US$ 191.05 million.
Major trade items between Pakistan and Turkey are Fabrics, Beverages, spirits and vinegar, plastics and articles thereof, chemicals, and machinery.