MUMBAI (Commoditiescontrol) – Pakistan and Malaysia are negotiating to further cut in duties on existing and additional tariff lines under Free Trade Agreement to expand trade between the two nations. Both countries had inked a Comprehensive Free Trade Agreement (FTA) for Closer Economic Partnership in 2007. It was Pakistan's first comprehensive FTA and Malaysia's first bilateral FTA with any south Asian country.
As per the agreement, for trade in Goods Pakistan was supposed to eliminate tariff on 43.2% of the current imports from Malaysia by 2012, while Malaysia had to eliminate tariff on 78% of imports from Pakistan.
The FTA has provided numerous opportunities for companies of both sides to promote trade and investment. For Malaysia, the current export basket is limited to palm oil, fibre board, rubber, electrical and electronic equipment while for Pakistan, major items exported are cotton, textile, rice, maize and vegetables.
Product diversification was the key to boosting trade between the two countries. Malaysia considers Pakistan as an advantageous for doing business as both the countries had the Closer Economic Partnership Agreement since 2007, which became operational in 2008.
(By Commoditiescontrol Bureau; +91-22-40015522)