Indonesia and Pakistan are likely to add more products on the trade list to benefit from lower tariffs under the existing preferential trade agreement (PTA) between the two countries.
The expansion of the items was approved after a recent review of the deal that came into force in 2013. Indonesia Trade Ministry international trade negotiation director general Iman Pambagyo said Wednesday that following the meeting of the review team last month, both parties had agreed to include more products for bilateral trade as they further assessed challenges in bilateral trade. “Pakistan will submit the expanded product list. We don’t know how many goods to cover, but if, for example, they add 200 items, we’ll also propose the same number,” he said.
The offering might take place in June, Iman further added. The PTA, which mainly lowers import duties on Indonesian palm oil and scraps duties on Pakistani kinnow oranges, was reviewed as it favoured Indonesia more than Pakistan, with the latter suffering a significant trade deficit.
Indonesia’s exports to Pakistan reached $1.99 billion, while imports stood at around US$174.51 million, according to data from Trade Ministry. Indonesia mainly sells derivatives of crude palm oil (CPO), fruits and paper and mostly imports cereals, cotton and fruits.
