Pakistan faces challenges in securing Free Trade Agreement with ASEAN due to limited partnership status: report

• Negotiations have recently been hindered by ASEAN member Singapore’s opposition to Pakistan’s elevation to Full Dialogue Partner status

Pakistan is facing challenges in securing a Free Trade Agreement (FTA) with the Association of Southeast Asian Nations (ASEAN) due to its current status as a Sectoral Dialogue Partner (SDP) rather than a Full Dialogue Partner (FDP), according to a news report.

Pakistan was granted Sectoral Dialogue Partner status by ASEAN in 1993, marking the beginning of formal cooperation. Over the years, both parties have held several meetings to discuss trade, industry, investment, and other key areas. However, despite efforts from Pakistan, including a formal proposal for an FTA during the 2010 ASEAN-Pakistan Joint Sectoral Cooperation Committee (APJSCC) meeting, the issue of full partnership status remains unresolved.

Recently, the negotiations have been hindered by ASEAN member Singapore’s opposition to Pakistan’s elevation to Full Dialogue Partner status, which is required for moving forward with FTA talks.

ASEAN has signed FTAs with six Full Dialogue Partner countries, including China, Japan, South Korea, India, and Australia. Despite these challenges, Pakistan continues to push for increased cooperation and deeper ties with ASEAN member countries.

A recent meeting of the ASEAN-Pakistan Joint Sectoral Cooperation Committee reaffirmed the commitment to further strengthening the partnership. The meeting recognised cooperation in trade and investment, science and technology, and human resource development, and highlighted the need for closer collaboration on issues like transnational crime, food security, and the digital economy. 

However, ASEAN has encouraged Pakistan to support the ASEAN Community Vision 2045 and engage in practical cooperation under the ASEAN Outlook on the Indo-Pacific.

To overcome this challenge, Pakistan has adopted a strategic shift towards strengthening bilateral relations with individual ASEAN countries. Pakistan has already signed FTAs with Malaysia, Indonesia, and Thailand, and continues to engage in negotiations with Vietnam, Cambodia, and the Philippines to further enhance trade and cooperation.

Pakistan’s trade mission in Singapore and Manila, along with the proposed Preferential Trade Agreement (PTA) with Vietnam, demonstrates the country’s efforts to build stronger economic and political ties that could eventually lead to Full Dialogue Partner status and open the door for an ASEAN-Pakistan FTA.