Pakistan urges Australia to provide level playing field for textile products

 ISLAMABAD: As Pakistan’s textile exports to Australia are highly negligible in the face of stiff competition from products made in Bangladesh and China that enjoy tariff concessions as well, Pakistan has urged Australia to give it a level playing field.

During the 7th session of Pakistan-Australia Joint Trade Committee, held in Canberra on Monday, Ministry of Commerce Secretary Younus Dagha requested the Australian officials to give more tariff concessions to Pakistani products. The meeting was jointly chaired by Dagha and Kathy Klugman, the first assistant secretary of Australia’s Department of Foreign Affairs and Trade.

Wide-ranging issues, including market access to Pakistan goods, trade and investment opportunities in Pakistan and business visa were also discussed during the meeting. Both sides agreed that current level of trade and investment between the two countries does not commensurate with the potential, and underlined the need to find ways and means to enhance trade.

During his opening remarks, the commerce secretary made a presentation on trade and investment opportunities in Pakistan, emerging in the wake of China-Pakistan Economic Corridor. The presentation highlighted that Pakistani economy has been growing at a fast pace and the macroeconomic indicators and inward investment provide positive signals for foreign investors.

With regard to bilateral trade between Australia and Pakistan, the secretary stated that the exports to Australia have not achieved their full potential due to tariff differential faced by Pakistani exporters.

Talking about concessions granted to China and Bangladesh, the secretary said that the former enjoyed zero duty because of a Free Trade Agreement with Australia, while the latter, being a developing country, enjoy zero duty as well.

He underscored the need for a favourable environment for Pakistani products in the Australian market and suggested that Pakistan should either be accorded the Developing Country Status with zero tariffs on its items of prime export interest, or both sides should strive for an FTA. As an interim measure, he suggested that an Early Harvest Programme may be negotiated between the two sides.

Acknowledging Pakistan’s concerns, the Australian authorities said they were phasing out their MFN tariffs. However, they agreed to consider Pakistan’s proposal of creating a level playing field either through a formal arrangement or maybe through change of category in the Developing Country tariffs of the Australian System of Tariff Preferences.

The issue of Pakistanis facing hurdles in getting business visas to Australia also came under discussion. The commerce secretary said such issues were impeding the trade between the two countries. The Australian side conceded that this issue was a long standing demand of Pakistani side and agreed to take up with the authorities concerned.

The commerce secretary also held a meeting with the Trade, Tourism and Investment Assistant Minister Keith Pitt and highlighted the issues of market access pertaining to Pakistan goods, especially in textile and agriculture sector. Upon which, the minister promised to look into these issues positively.

The secretary held a number of meetings with businessmen and officials in Australia. During these meetings, the secretary appreciated the role of the business community in forging growing bilateral economic relations besides highlighting the economic potential and investment opportunities arising out of the positive economic developments in the country.

 

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