Turkey sets conditions for FTA approval with Pakistan

Turkey sets conditions for FTA approval with Pakistan

ISLAMABAD: Turkey has linked finalisation of a Free Trade Agreement (FTA) with market access for Turkish auto sector in Pakistan.

Both sides have already missed the deadline of February 2017 to finalise the FTA.

The last round of talks on proposed FTA, which covers trade in goods and services and has a chapter on investment, was held in December 2016.

High-ups of the Turkish government have recently conveyed to Islamabad that the FTA will only be finalised after Islamabad opens up auto sector for Turkey’s exporters.

Turkey has linked giving market access to Pakistani textile and clothing sectors with auto sector’s liberalisation. Data shows that Pakistan’s exports to Turkey declined by almost 19pc annually after the imposition of additional duties by Ankara in 2011. Exports dipped to $311 million in 2015 from $873m in 2011.

Pakistan also imposed regulatory duties on imports from all countries including Turkey.