Jakarta, The Indonesian and Pakistan governments on Friday signed long-discussed Preferential Trade Agreement PTA here.
Trade Minister Gita Wirjawan as Indonesian representative signed the PTA, Indonesian Trade Ministry director general for international trade cooperation Gusmardi Bustami told The Jakarta Post. Pakistan Minister of Commerce Makhdoom Amin Fahim cannot attend the signing and will be represented by Pakistan Ambassador M. Sanaullah, he said.
Talks on the PTA, which started in 2005, were delayed as Indonesia and Pakistan could not find common ground on tariff reductions for several commodities, including principal export commodities from both nations: Indonesian palm oil and Pakistani kino oranges.
Gusmardi earlier said he expected that trade deal would boost Indonesia’s export of palm oil and other products, including electronics, to Pakistan.
Under the deal, Indonesia’s principal export commodity palm oil for example, will enjoy the same level of import duty as Malaysian palm oil, while Pakistani kino oranges will pay no duty, which will enable them to compete better with similar products, mainly Mandarin tangerines.
Indonesian Palm Oil Producers Association Gapki executive director Fadhil Hasan said he welcomed the agreement, expecting palm oil exports would rebound under the PTA to their pre-2007 level of around US$560 million, when Indonesian palm oil had a commanding 55 percent market share in Pakistan.
