ISLAMABAD: Pakistan has potential to enhance its exports to Turkey up to $5 billion, with the greatest capacity of
\n$329 million in the trade of instruments and appliances used in medical, surgical and veterinary sciences, says the latest report of Pakistan Business Council (PBC).
\nThe PBC in its \u201c2016 Second Review of the Feasibility of a Free Trade Agreement (FTA) between Pakistan and Turkey,\u201d urged that Pakistan should emphasize on pressing for tariff reduction on its high potential export products.
\n\u201cWhile the tariffs faced by the top 10 high potential items of Pakistan are low (9.6 percent or below), there is a significant difference between tariffs placed on Pakistan and Turkey\u2019s Free Trade Agreement partners, Egypt and Jordon,\u201d it said.
\nTurkey\u2019s FTA partners Egypt and Jordan enjoy tariffs significantly lower than those currently faced by Pakistan; while the tariffs on Turkish exports, though high, are at par with those on the exports of Pakistan\u2019s FTA partners including China, Sri Lanka and Malaysia.
\nThe report said that Turkey has the potential to export $12.8 billion to Pakistan, with the greatest potential $346 million in trade of motor cars and other motor vehicles.
\nAccording to the report, tariff and trade simulation shows that had both the countries signed an FTA that eliminated all tariffs in 2015, Turkey\u2019s exports would rise by 32% while Pakistan\u2019s exports would only rise by 22%.
\nThe Study finds that the benefits of a bilateral FTA are skewed in favor of Turkey and its export portfolio fits the import needs of Pakistan better than vice versa, hence Turkey is more likely to experience increased exports post FTA.
\nLooking at the potential for both countries to increase their exports to each other, Turkey\u2019s export potential is over 2.5 times larger than Pakistan\u2019s export potential, the report observes.
\nThe report urges that negotiations need to focus on tariff elimination across high potential exports, particularly those in which the exporter has a comparative advantage.
\nPakistan should also be wary of non tariff barriers, it says, adding tariff elimination alone cannot increase Pakistan\u2019s exports to their 2011 level; those exports can be partly recouped if trade remedy provisions are made part of the FTA.
\nAccording to the study,Pakistan\u2019s exports to Turkey are concentrated in cotton while its imports consist of machinery, electrical, electronic equipment, plastic, chemicals, synthetic staple fibers, and iron\/steel.
\nPakistan benefits from a positive, though sharply declining.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD: Pakistan has potential to enhance its exports to Turkey up to $5 billion, with the greatest capacity of $329 million in the trade of instruments and appliances used in medical, surgical and veterinary sciences, says the latest report of Pakistan Business Council (PBC). The PBC in its \u201c2016 Second Review of the Feasibility of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-6449","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n