Indonesia-Pakistan PTA to become operational from Sept: 01

The Preferential Trade Agreement (PTA) between Pakistan and Indonesia will become operational on September 1st (Sunday), creating new opportunities for mutually beneficial exploitation of the huge trade potential that happily marks the historically friendly relations between Pakistan and Indonesia, officials say.

The last hurdle in the actualization of the PTA was removed by the signing of Mutual Recognition Agreement on Plant Quarantine and SPS Measures in Jakarta by Ambassador Sanaullah and Head of Indonesian Agricultural Quarantine Agency (IAQA) Mrs. Banun Harpini. 

A special meeting was arranged by the Ministry of Agriculture to hold the signing ceremony. Officials from different Indonesian Departments were invited to witness the event. It may be noted that Indonesia has signed MRA with only USA, Australia, New Zealand, Thailand and Canada. From South Asia, Africa, Europe and Middle East, Pakistan has become the first and the only country which will be able to export its fruit to Indonesia without subjecting it to Indonesian Quarantine Rules and Regulations.

Addressing the gathering, Indonesian Ambassador to Pakistan, Mr. Burhan Muhammad who specially flew to Jakarta to overseas finalization of the PTA, and said that “by signing MRA and awarding Pest Free Area Recognition Certificate for Pakistan Kinnow, allowing entry through Tanjung Priok Port of Jakarta, Indonesia has removed all impediments in effective implementation of IP-PTA from 1st Sept 2013.

This will enhance bilateral trade between the two countries. Although, this year has almost passed, he believed that the bilateral trade may reach US $ 2 billion mark. Indonesia values her relationship with Pakistan. “From here, we are ready to start negotiations for IP-FTA covering not only goods but opening cooperation in investment, services, energy sector, tourism and Islamic banking too” he added.

Ambassador Sanaullah expressed his gratitude to the Indonesian Minister for Trade, Mr. Gita Wirjawan for his personal commitment to remove all Non-Tariff Barriers (NTBs), which blocked the operationalization of IP-PTA already signed in February, 2012. He also thanked the Indonesian Quarantine Agency for arranging speedy field verification of Kinnow archids in Pakistan, which led to signing of Mutual Recognition Agreement (MRA).

The Ambassador further said that the trade potential between the two countries is huge and is likely to increase further, keeping in view the swelling middle class in both countries. Also, the Ambassador pointed out that for certain Indonesian products like Palm Oil, Pakistan could serve as an entry point to Central Asian Republics and western China.

Indonesian would not only be catering a market of 180 million people, but consumers from at least six other countries including Afghanistan, Tajikistan, Uzbekistan, Kyrgyz Republics, Kazakhstan and China. Ambassador further said that Pakistan’s need for Palm Oil, Pulp & Paper and Rubber are strategic and is not likely to decline. Indonesian business should focus on our market from this angle as well. Mutually beneficial trade can multiple after it is made people centric and the business community of the two countries are felicitated to meet each other frequently.

As per the MRA, Pakistani Kinnow would be able to land in Jakarta without undergoing SPS standards and inspections. In simple words it means that Pakistan would be able to have a longer shelf life for its agricultural products and cheaper costs by avoiding entry through Surabaya.

The export of Kinnow, which ranges between US$ 4 to 5 million, is likely to get a boost with the Country Recognition and MRA. Other Agricultural products which can benefit from this Agreement include Pears, Apples, Apricots and dry nuts. 

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Posted by Tahir Khan on Aug 31 2013. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.