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sibgakhan · #25 Monday, January 16, 2006

Islamabad agrees to FTA status for Dhaka

DHAKA: Pakistan agreed to give Bangladesh special trade preferences under a free trade agreement (FTA), concluding two days of bilateral talks on Monday.

Bangladesh also sought longer time than Pakistan to phase out tariffs under the FTA and immediate free entry of its products to the Pakistani market. Elias Ahmed, joint secretary of the Bangladeshi Ministry of Commerce, and his Pakistani counterpart, Jafar Iqbal Qadir, led their sides in the talks. “Pakistan proposed the FTA and Dhaka responded positively. Luckily, we reached a consensus on most issues during today’s discussion,” Mr Qadir told journalists. He said tariff phase-out period, reduction of direct tariff and elimination of non-tariff barriers were the focus of the discussion. “The trade gap tilts in favour of Pakistan. But we think trade volume between the two countries should increase,” Mr Ahmed said after the meeting. According to sources who attended the meeting, Bangladesh had proposed free access to Pakistani products 12 years after signing the FTA, while Islamabad was asked to open its market one year after the deal. “However, Pakistan did not agree to this proposal,” sources said.

Islamabad earlier allowed duty-free access to a limited quantity of jute and tea from Dhaka. Bangladesh demands unlimited market access.