Free trade agreement with China finalised:
LAHORE: Federal Commerce Minister Humayun Akhtar Khan on Saturday said that Pakistan had finalised free trade agreement with China while negotiations with the US in this connection were underway.
He was talking to the newsmen after participating in a conference on "Domestic Commerce - The Missing Link", organised by the United Nations Development Programme (UNDP) and Ministry of Commerce here.
He said that Pakistan had initiated trade negotiations with the US during a visit of President Musharraf in 2004 to finalise Pak-US bilateral investment agreement.
"There has been progress during recent visit of Prime Minister Shaukat Aziz to the United States," he said, adding the agreement would be finalised after the conclusion of talks.
Talking about GSP Plus status to Pakistan by the European Union, the commerce minister said that Pakistan had succeeded in getting GSP status in January 2006 and the country’s textile products were exempted from 20 per cent duties in the European market. However, he added, "we are targeting to get the status of GSP Plus".
To a question, he said that Pakistan had not rejected or delayed implementation of South Asia Free Trade Agreement (SAFTA). Its gradual implementation would start from July 2006, he added.
He explained that the developing nations of SAARC had demanded assistance on technical issues regarding SAFTA, which would be addressed soon. He said SAFTA was not delayed and was being implemented as per the agreement.
He said the most favoured nation (MFN) status to India was not part of SAFTA as it would be dealt at bilateral level.
Referring to domestic commerce, Humayun Akhtar said that a trade survey report was being prepared to assess the obstacles in the way of trading. He added that the report would be issued with the trade policy in next fiscal year.
He said Chinese cheap products were essentially not a problem for local industry. He added that trade malpractices such as under-invoicing and dumping of goods could create problem. However, the government would handle such issues with a proper strategy, he maintained.
He said multinational investment would give an impetus to working of local companies as competition always led to economic development.
He did not agree with the impression that multinational investment in wholesale and retail sectors would harm the interest of farmers, small traders and consumers.
Among others, Shahid Hussain, Nadimul Haq and Marek Minkiewicz also spoke on the occasion.
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