Free Trade Agreement Between Pakistan And Indonesia

The comprehensive agreement included a single ten-item chapter, the initial agreement containing lists of relevant Pakistani and Indonesian products for 232 Indonesian and 311 Pakistani products. [1] In particular, the agreement allowed Pakistani relatives to enter Indonesia duty-free and granted Indonesian palm oil a preferential margin of 15% upon entry to Pakistan. [2] The preferential trade agreement between Indonesia and Pakistan is a preferential bilateral agreement between Indonesia and Pakistan on 3 February 2012. It is hoped that after the PTA enters into force, overall trade between the two countries will reach $2 billion next year and that improved trade relations will lead to a move towards the next goal for Pakistan, namely the conclusion of a comprehensive bilateral free trade agreement with Indonesia. The completion of the MRA between Indonesia and Pakistan removed the non-tariff barriers faced by Kinnow`s Pakistani exports to Indonesia and allowed fruit to be imported through the Port of Jakarta. Under the PTA, Indonesia will grant Pakistan market access at preferential prices for 216 products, including fresh fruit, cotton yarn, cotton fabrics, finished clothing, sporting goods and leather goods. PTA`s list of Pakistani offers for Indonesia includes a total of 287 preferential tariff lines and has agreed to treat Indonesian palm oil products in the same way as Malaysia under the Pakistan-Malaysia Free Trade Agreement (FTA). Prior to the agreement, the two countries had concluded a framework comprehensive economic partnership agreement signed by the two trade ministers in November 2005. The full agreement was signed on 3 February 2012 in Jakarta after six rounds of negotiations. [1] Indonesia formally ratified the agreement in November 2012[3] and the clauses came into force in September 2013. [4] Although trade between the two countries increased significantly after the signing of the agreement, Indonesia`s exports to Pakistan remained significantly higher than Pakistan`s exports to Indonesia, with $2.53 billion exported by Indonesia and $296 million exported by Pakistan in 2017-18.

[8] This deficit is at the root of Pakistan`s request to amend the agreement. [9] In November 2005, Pakistan and Indonesia concluded a Comprehensive Economic Partnership Agreement, which stated that countries had begun negotiations for a EPZ in 2006.

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