ISLAMABAD – Pakistan government has decided to enhance trade ties with theLatin American countries, it has been revealed.
Pakistan has requested a Free Trade Agreement with the Latin AmericanCountries.
The External Relations Group of Mercosur will put forward Pakistan’s appealfor signing a free trade agreement (FTA) in early 2019, in order to presenta prospect to Islamabad to reduce the trade discrepancy with countries ofthe Latin America trading bloc.
According to the details it is revealed during a meeting between CommerceSecretary Younus Dagha and a delegation led by Argentinian Ambassador IvanIvanissevich that presently, the Ministry of Commerce is struggling toresurrect discussions on confirming privileged and free trade agreementswith Mercosur – a trade bloc including Argentina, Brazil, Paraguay, Uruguayand Venezuela. Due to these efforts, the External Relations Group ofMercosur will pass up the matter for examining Pakistan’s appeal in early2019.
Also, the commerce secretary highlighted the point that Latin America playsvital role in non-traditional markets where Pakistan’s market share wasinsignificant regardless of enormous probability for exports equally intraditional and non-traditional sectors.
Therefore, to accomplish superior market admittance in the region, theMinistry of Commerce has signed a Framework Agreement on Trade withMercosur in 2006, in accordance to a plan to ink a preferential tradeagreement (PTA) which will later on lead to free trade agreement (FTA.
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It is also observed that Pakistan had annual trade of $1 billion withMercosur countries, and further adding trade with Argentina it will bepositioned at $200 million, which can also augment to $800 million.
Moreover, the FTA will play a vital role in providing an opening tooverpass the trade scarcity with Mercosur countries. Also, the secretaryaccentuated and pronounced Argentina and Brazil profitable markets butPakistan is mainly paying attention on textile exports.
He also added, “As Pakistan’s appeal is put forward by the ExternalRelations Group of Mercosur, the commerce ministry has strengthened itstrade peacekeeping by attracting Brazil & Argentina embassies in Islamabad.”
