Pakistani fruit, vegetable producers and exporters here to enhance bilateral trade

A Pakistani trade delegation of fruit and vegetable producers and exporters is visiting Sri Lanka to explore the ways and means to enhance bilateral trade between Sri Lanka and Pakistan. The participants of the delegation specialize in the production and export of various fruits and vegetables including Guava, Chikoo (Sepatila), Mango, Citrus, Berry, Potato, Dry fruits, Gurr, Tobacco (cigar), Fresh and dry dates etc.

The delegation consist of 6 members and Mr. Faqir Nusrat Hussain is leading the delegation. Eager to reap maximum benefits from the Free Trade Agreement (FTA) between Pakistan and Sri Lanka, the delegation would also explore the opportunities in the tea sector. The delegation would also visit Kandy to interact with the local Chamber of Commerce, Tea Research Board, and to visit Tea Factories and Spice gardens. During their stay in Sri Lanka, the delegation will be holding meetings with the Sri Lankan fruit and dry fruit importers as well as other stakeholders to explore the possibilities of enhancing bilateral trade.

The meetings scheduled with the Srilankan businesses would offer a good opportunity to the local businessmen to gain awareness and knowledge about the prospects for expansion of the two-way trade between Pakistan and Sri Lanka in the fruit and vegetable sector. Sri Lanka was the first country to sign a Free Trade Agreement (FTA) with Pakistan. Following FTA's coming into operation in June, 2005; bilateral trade between both the countries has been strengthened. Resultantly, Pakistan has now become the second largest trade partner for Sri Lanka in the South Asian region.

The enhanced bilateral trade between the two friendly countries is reflected by an increase in the number of products imported from and exported to Sri Lanka such as fish, meat, vegetable, foliage, plant, sugar, biscuits, pastry, cakes, mineral products, fiber boards, leather and leather-based products, footwear, gems, jewellery, value-added copper products, electrical items, bicycles, boats, and floating structures.

There was a great demand for Pakistani produces such as cotton yarn, fabrics, potatoes, pharmaceutical products, knitted or crocheted fabrics, articles of iron and steel, galvanized pipes, rice, fish, seafood, textile articles, articles of apparel and clothing accessories, rods of refined copper etc. Under FTA, Sri Lanka and Pakistan have agreed to offer preferential market access to each others' exports by way of granting tariff concessions. Sri Lanka is enabled to enjoy duty free market access on 206 products in the Pakistani market, while Pakistan, gained duty free access on 102 products in the Sri Lankan market.

The aim of a free trade agreement is to reduce barriers, to facilitate exchange so that trade can grow as a result of specialization, division of labor, and most importantly via comparative advantage. Items in the zero duty list of Pakistan include frozen fish, vegetables, spices, fruits/juices, polymers of vinyl chloride in primary forms, natural rubber, raw silk, tanned/crust skins, wool, some varieties of paper and board, carpet and floor covering, non-alloy aluminum, iron and steel products and toys/dolls.

Sri Lanka's zero duty items under the FTA include chickpeas, dates, oranges, benzene, toluene, apparel and clothing accessories, ball bearing, penicillin/ streptomycin/ tetracycline and their derivatives and vacuum flasks. The two friendly countries have also signed the Bilateral Investment treaty in December 1997, which came into force in January 2000 after ratification.

In addition a memorandum of understanding between Board of Investment Pakistan and Board of Investment Sri Lanka has also been signed in February 2007 for strengthening of cooperation in all the sectors of investment of both countries.

This MoU provides support to the enterprises on both sides and encourages them to invest in both countries. The two Boards of Investment also practice sharing of information on investment polices and projects and encourage exchange of expertise. The Pakistani agricultural products will provide a cheaper and higher quality alternative to Sri Lankan imports from far-away countries and would also add diversity in the Srilankan markets to the advantage of consumers.