PTA with Japan sought to ease tariffs
Pakistan has raised serious concerns over high tariffs imposed by Japan and calls for entering into a bilateral Preferential Trade Agreement (PTA) to ensure fair competition and balanced tariffs.
Secretary of Commerce Jawad Paul has advocated for entering into a bilateral Preferential Trade Agreement (PTA) with Japan to ensure fair competition and balanced tariffs.
Federal Minister for Commerce Jam Kamal Khan held a key meeting with the Ambassador of Japan on Monday, focusing on strengthening trade relations and addressing long-standing tariff issues.
During the meeting, the minister proposed holding a dedicated Pakistan-Japan Business Forum to enhance bilateral commercial ties.
Secretary of Commerce pointed out that Pakistan faces higher tariff barriers compared to other countries in the region, limiting its competitiveness in the Japanese market.
Under Japan's Generalised System of Preferences (GSP), Pakistan's textile exports face an average tariff of 5.36%, while leather products are subject to an average tariff of 16% under Tariff Rate Quotas (TRQs).
In FY 2023-24, bilateral trade stood at $1.33 billion, with Pakistan exporting only $194 million worth of goods to Japan, compared to $1.137 billion in imports.
Minister Khan emphasised the urgent need to boost Pakistan's exports to Japan, which have remained stagnant and are significantly lower than imports.
The Ambassador of Japan welcomed the proposal for a business forum and acknowledged Pakistan's concerns regarding high tariffs, assuring that these issues will be addressed. He reaffirmed Japan's commitment to enhancing bilateral trade and investment.
The federal minister also stressed the importance of easing business travel through multiple-entry visas and encouraged Japanese investors to explore opportunities in Pakistan's textile, leather, surgical, and seafood sectors.
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