Pak-Indonesia PTA operational from September 13 The Preferential Trade Agreement (PTA) will become operational from September 13, 2013, creating new opportunities for mutually beneficial exploitation of the huge trade potential that happily marks the historically friendly relations between Pakistan and Indonesia. The last hurdle in the actualisation of the PTA was affectively removed by the signing of Mutual Recognition Agreement (MRA) on Plant Quarantine and SPS Measures on Friday by Ambassador Sanaullah and Indonesian Agricultural Quarantine Agency (IAQA) Director General Ms Banun Harpini. Indonesia has signed MRA with only USA, Australia, New Zealand, Thailand and Canada. From South Asia, Africa, Europe and Middle East, Pakistan has become the first and the only country which will be able to export its fruit to Indonesia without subjecting it to Indonesian Quarantine Rules and Regulations. Ambassador Sanaullah said that the trade potential between the two countries is huge and is likely to increase further, keeping in view the swelling middle class in both countries. Also, the ambassador pointed out that for certain Indonesian products like palm oil, Pakistan could serve as an entry point to Central Asian Republics and western China. Indonesian would not only be catering to a market of 180 million people, but consumers from at least six other countries including Afghanistan, Tajikistan, Uzbekistan, Kyrgyz Republics, Kazakhstan and China. The IAQA director general confirmed that Pakistani kinnow and other agricultural products would be allowed to enter the Indonesian market through Tanjung Priok Port, Jakarta. She said that the signing of MRA was part of the commitment made by the two countries during the visit of President Susilo Bambang Yudhoyono to Pakistan in 2005. She expects that because of MRA and PTA, the bilateral trade would have the capacity to reach $5.5 billion by end of 2014. As per the MRA, Pakistani kinnow would be able to land in Jakarta without undergoing SPS standards and inspections. In simple words it means that Pakistan would be able to have a longer shelf life for its agricultural products and cheaper costs by avoiding entry through Surabaya. The export of kinnow, which ranges between $4 million to $5 million, is likely to get a boost with the Country Recognition and MRA. Other agricultural products, which can benefit from this agreement include pears, apples, apricots and dry nuts.
Posted on: Fri, 06 Sep 2013 20:46:14 +0000
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