International Trade Agreements of Pakistan1 września, 2023
International Trade Agreements of Pakistan: A Comprehensive Overview
Pakistan, a country located at the crossroads of South Asia, Central Asia, and the Middle East, is a key player in the global economy. The country has a rich trading history and has signed multiple international trade agreements over the years. These agreements have helped Pakistan to increase its market access and exports, create jobs, and stimulate economic growth.
In this article, we will provide a comprehensive overview of Pakistan`s international trade agreements, exploring their significance and impact on the country`s economy.
1. South Asian Free Trade Area Agreement (SAFTA)
SAFTA is an agreement between the countries of South Asia, including Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The agreement seeks to promote regional trade by reducing trade barriers and encouraging the free flow of goods among member countries.
Pakistan has been a signatory to SAFTA since 2004. The agreement has been instrumental in increasing Pakistan`s trade with its neighbors. In 2020, Pakistan`s exports to SAFTA countries were valued at $865 million, while imports were $1.7 billion.
2. China-Pakistan Free Trade Agreement (CPFTA)
The CPFTA is a bilateral trade agreement between China and Pakistan, signed in 2006. The agreement aims to increase trade between the two countries by reducing tariffs on various products.
Under the CPFTA, Pakistan has been able to increase its exports to China, particularly in the textile and agriculture sectors. In 2020, Pakistan`s exports to China were valued at $2.7 billion, while imports from China were $12.8 billion.
3. Preferential Trade Agreement with Iran
Pakistan signed a Preferential Trade Agreement (PTA) with Iran in 2004. The agreement aims to increase bilateral trade by reducing tariffs on certain products.
The PTA has been important for Pakistan`s trade with Iran, which mainly consists of fruit, rice, and textiles. In 2020, Pakistan`s exports to Iran were valued at $31 million, while imports were $318 million.
4. Free Trade Agreement with Turkey
Pakistan and Turkey signed a Free Trade Agreement (FTA) in 2012. The agreement aims to increase bilateral trade by reducing tariffs on various products.
Under the FTA, Pakistan`s exports to Turkey have increased, particularly in the textile sector. In 2020, Pakistan`s exports to Turkey were valued at $1.2 billion, while imports were $339 million.
5. Generalized System of Preferences (GSP) Plus
Pakistan was granted GSP Plus status by the European Union in 2014. This status allows Pakistan to export certain goods to the EU market without paying tariffs.
The GSP Plus status has been instrumental in increasing Pakistan`s exports to the EU, particularly in the textile sector. In 2020, Pakistan`s exports to the EU were valued at $6.7 billion.
Pakistan has signed multiple international trade agreements, which have been instrumental in increasing its exports, creating jobs, and stimulating economic growth. These agreements have helped Pakistan to diversify its markets and increase its market access. Furthermore, they have allowed Pakistan to strengthen its relations with other countries, promoting peace and stability in the region.
As Pakistan continues to pursue its economic development goals, it will be essential to leverage international trade agreements to maximize its benefits. By removing trade barriers and promoting the free flow of goods, Pakistan can increase its competitiveness in the global economy and contribute to its growth and prosperity.