Pakistan and the Gulf Cooperation Council (GCC) are planning to sign Free Trade Agreements (FTAs) during talks scheduled for September 26-28, 2023, in Riyadh, Saudi Arabia.
As per reports, Pakistan and the GCC have been engaged in negotiations for some time, and there is a general consensus that an FTA should be signed, even if its scope is initially limited. This move aims to materialize a process that began decades ago.
Pakistan’s delegation for the talks is expected to be led by caretaker Minister for Commerce Gohar Ejaz. The choice of a high-level representative indicates the importance attached to resolving any major issues that may arise during the talks promptly.
In addition to the GCC negotiations, Pakistan is also in talks with the United Arab Emirates (UAE) on a trade pact, suggesting broader trade engagement in the region.
Reports said that Saudi Crown Prince Muhammad Bin Salman has linked his upcoming October visit to Pakistan with the signing of the FTA between Pakistan and the GCC during the talks in late September. This underscores the potential significance of the FTA in regional relations.
Pakistan has prepared a list of 2,096 tariff lines at HS 8, which accounts for 28 percent of total tariff lines. However, the agreed modalities call for keeping the exclusion list at 20 percent, which translates to 1,497 tariff lines. This means that some products will be protected while others may be included in the FTA.
The Commerce Ministry has sought comments from relevant ministries to determine which products should be protected and kept on the exclusion list and which products can be included in the FTA under specific categories.
The GCC and Pakistan have been exploring the possibility of economic cooperation and FTA negotiations since 2004 when they signed a Framework Agreement on Economic Cooperation.
