Latest news with #TradeinGoodsAgreement
Business Recorder
14-07-2025
- Business
- Business Recorder
$5bn Pakistan-Turkiye bilateral trade goal: PM urges MoC to set specific targets
ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Ministry of Commerce to set specific targets, along with a clear mechanism and milestones, to progress toward achieving the longstanding goal of $5 billion in annual bilateral trade with Turkiye, well-informed sources told Business Recorder. Despite repeated commitments at the highest levels to increase trade, progress has remained limited— even though the Trade in Goods Agreement between Pakistan and Turkiye has been in effect since May 1, 2023. Under this agreement, Pakistan has secured preferential access to the Turkish market across 261 tariff lines, covering both traditional and non-traditional sectors such as leather, rice, dates, mangoes, cutlery, sports goods, seafood, processed agricultural products, rubber tubes and tyres, plastics, and engineering goods. Pakistan, Turkiye reaffirm commitment to boost ties, target $5 billion trade volume In return, Turkiye has been granted concessions on 130 tariff lines, including items such as black tea, processed food products and flavourings, industrial raw materials, machinery parts, and electronic equipment components. Both countries have set a strategic medium-term goal of enhancing bilateral trade to $5 billion, as part of their broader economic partnership. A key step in this direction was the Framework Agreement for Establishing a Free Trade Area, signed on March 22, 2016, expressing mutual commitment to gradually liberalise trade in goods. Pakistan had undertaken extensive negotiations on the Trade in Goods Agreement in consultation with public and private stakeholders. The agreement represented a major breakthrough in Pakistan-Turkiye economic relations and was a central focus during Prime Minister Shehbaz Sharif's visit to Turkiye from May 31 to June 2, 2022. On July 7, 2025, during a meeting to review bilateral ties with Turkiye, the Prime Minister issued a series of decisions and directives to relevant ministries and departments. Ministry of Commerce and Ministry of Economic Affairs have been directed to propose date of next Joint Ministerial Commission meeting in August 2025 instead of September 8-9, 2025. Ministry of Defence (Aviation Division) will arrange a small meeting to discuss outsourcing of airports to Turkish firm. Pakistan's Ambassador in Ankara to follow up PM's discussion with Turkish President regarding to G2G agreement with regard to world-class Turkish Consultant firm for Jinnah Medical Complex and Danish University. He would also pursue cooperation of ship-breaking industry with the Turkish firms. Petroleum Minister Ali Pervaiz Malik has been directed to follow up with a Turkish company on both offshore and onshore exploration in Pakistan. Prime Minister has directed Ministry of Railways to continue active follow up with Turkish side on the Istanbul-Tehran-Islamabad Railway Project. Azad Jammu and Kashmir Government has to allot at least 20 acres of land to MAARIF Foundation preferably in Muzaffarabad or in Mirpur if acceptable to Turkish side. Ambassador of Pakistan in Ankara has to pursue with Turkish firms GIB for a G2G arrangement with FBR and developing a digitised cargo Tracking System. Advisor to PM has to send a letter to Ambassador in this regard. Pakistan National Shipping Corporation will give a presentation to the Prime Minister by National Logistic Cell (NLC) after Deputy Prime Minister has seen it. Copyright Business Recorder, 2025
The Diplomat
02-07-2025
- Business
- The Diplomat
ASEAN and the China-US Trade War
The Diplomat author Mercy Kuo regularly engages subject-matter experts, policy practitioners, and strategic thinkers across the globe for their diverse insights into U.S. Asia policy. This conversation with Sharon Seah – senior fellow and coordinator at the ASEAN Studies Centre, ISEAS Yusof Ishak Institute in Singapore – is the 468th in 'The Trans-Pacific View Insight Series.' Describe the regional vibe at the recent ASEAN Summit toward U.S. President Donald Trump's tariff threats. One of the greatest preoccupations of regional leaders since April 2, 2025 has been with the alarming levels of rising protectionism and disruptive actions seeking to undermine the open, free, multilateral trading system. Southeast Asia has benefited from an open, free, and fair global order for many decades since ASEAN countries' independence. An open and free global trading system, undergirded by robust and strong international law, has served small states well. Trade is ASEAN's lifeline. Without trade, ASEAN cannot maintain its relevance with the major partners. Because of these concerns, ASEAN leaders delivered a statement calling out unilateral and retaliatory actions that risk fragmenting the global economic order. They further instructed the officials to track the risks of trade diversions and engage in negotiations with partners, and also reiterated their commitment to maintaining open and secure trade flows and strengthening supply chain resilience. In the face of such volatility and uncertainty, accelerating ASEAN's regional economic integration has become a top priority agenda. This includes driving the negotiations for the ASEAN Digital Economy Framework, upgrading ASEAN's Trade in Goods Agreement, upgrading different ASEAN+ 1 FTAs to future proof and modernize these agreements, strengthening and increasing intra-ASEAN trade (which includes the removal of non-tariff barriers), and creating safety nets for the region's most vulnerable workers and industries. Analyze how Southeast Asian capitals are managing relations with Washington while concurrently balancing their countries' strategic position in the broader China-U.S. trade war. President Trump's tariffs are currently at the baseline of 10 percent, but the 90-day 'pause' on higher rates is set to expire by July 8. The tariffs are causing much anxiety in capitals around Southeast Asia. Some countries like Vietnam, Cambodia, and Laos – which are subject to some of the highest levels of tariffs – have yet to conclusively reach a settlement. The silver lining, at least at the time of response to this question, is that the U.S. has reportedly 'reached a deal' with China on the export of rare earth elements and continued acceptance of Chinese students in U.S. higher education institutions. Regional governments know enough, by now, not to take such news at face value. Anything can change overnight. Conventional knowledge tells us that if the U.S. is more or less happy with the Chinese deal, then perhaps the level of pressure and scrutiny on Southeast Asia would come down. One of the biggest issues under discussion is how Southeast Asia provides a backdoor for Chinese goods to flow through to the U.S. and how the region can help to stem this flow. But these are not conventional times, and everything is fair game to the current administration. With the U.S. now focusing on the Iran strikes and counter-responses, it's an open question whether there is bandwidth to conclude more trade deals with countries ahead of the July 8 deadline. With the distraction of the Iran-Israel conflict and potential for widening wars in the Middle East, it remains to be seen if President Trump would pay sufficient attention to the Pandora's box of tariffs. Examine how Southeast Asian countries are protecting specific industries and trans-shipment capabilities that advance their respective national interests. Export re-direction from China to Southeast Asia is a real concern. Many Southeast Asian economies are heavily export-oriented so having to deal with the double whammy of tariff imposition from one of their biggest markets (the U.S.) as well as re-direction from one of their biggest trading partners (China) is very challenging. It would mean that domestic manufacturing and export industries will be impacted. For example, the Cambodian garment industry's biggest export destination is the U.S. but with 49 percent tariffs, it would be difficult for exporters to bear the cost. In effect, the industry will see greater cancellation of orders because U.S. retailers would not be willing to bear this cost either. Identify supply chain risks and opportunities facing Southeast Asian companies amid China-U.S. trade tensions. Assuming that the U.S.-Iran conflict can be contained, there is currently the risk that the Strait of Hormuz, where much of Asia-Europe trade transits, could be blockaded. This is the most significant development that can disrupt trade flows and importantly the flow of essential goods such as LNG and petroleum to Asia. U.S.-China trade tensions, for the moment, will take a backseat to what is happening in the Middle East. As seen the last few times when the world experienced major blockages of waterways such as the Suez Canal, the business costs of diversifying access markets, halting production, manufacturing, and delaying deliveries are tremendously high. Southeast Asian companies have learned to diversify into different markets and looked for new suppliers that are geographically not reliant on open routes. It is also an opportunity for companies to invest in better R&D to create higher value goods in order to claim a place in the supply chains. Assess the geopolitical implications of ASEAN states' calculations in negotiating tariffs with Washington. Even if the conflict in the Middle East recedes, the environment for constructive negotiations on trade has deteriorated, as the recently concluded G-7 summit showed. The outlook therefore for future trade gatherings such as the G-20 in Seoul is dampened, especially if the U.S. representative is distracted and unwilling to negotiate. The question troubling many trading nations of the world is whether the rate of diminishing returns in pursuing the U.S. for economic deals is worthwhile or whether it would be better to deepen relations with other partners such as China, the EU, Japan, South Korea, etc. The chances of ASEAN leaders getting a meeting with President Trump at this year's ASEAN Summit or on invitation to Washington D.C. have diminished. In fact, from the announcement of Liberation Day tariffs, few world leaders have managed to speak to President Trump and even if they did secure something of a 'deal,' may find the terms changing over time. It would seem the better strategy is to build ASEAN's own economic resilience up by deepening integration, increasing intra-regional trade from the current levels of 22 percent, attracting greater FDI from nontraditional partners such as the Gulf states, and accelerating the adoption of ease of business schemes such as the ASEAN Single Window Plus (which is meant to link ASEAN countries' customs/border systems with those of its major trading partners to facilitate greater ease of transactions) and cross-border e-payment systems etc.
Business Recorder
24-06-2025
- Business
- Business Recorder
Turkish CG visits LCCI to explore ways aimed at boosting trade
LAHORE: The Consul General of Turkiye, Durmus Bastug visited the Lahore Chamber of Commerce and Industry on Monday to explore ways to expand trade and investment cooperation between the two brotherly countries. The key areas, which came under discussion for enhancing collaboration, were trade, investment, technology, tourism and agriculture, along with the regular exchange of business delegations. LCCI Vice President Shahid Nazir Chaudhry, Executive Committee Members Khurram Lodhi, Irfan Ahmad Qureshi, Amina Randhawa, Karamat Ali Awan, Rana Muhmmad Nisar, Shouban Akhter and Asif Khan also spoke on the occasion. Durmus Bastug said that many of Turkiye's leading companies are already operating in Pakistan which reflects the confidence of Turkish investors in Pakistan's market. He stressed the importance of strengthening business-to-business relations and shared Turkiye's interest in initiating more joint ventures with Pakistani counterparts. He said that Pakistan and Turkiye shared a bond rooted in brotherhood and mutual respect and assured that all possible efforts are underway to elevate the level of bilateral trade and cooperation. LCCI Vice President Shahid Nazir Chaudhry said that Pakistan holds its relationship with Turkiye in the highest regard. He said that the bond between the two countries is not just diplomatic but deeply historical and cultural, with both nations standing side by side during moments of celebration as well as times of adversity. He also recognized the crucial role played by both countries as members of the Organization of Islamic Cooperation in fostering unity, peace and progress within the Muslim world. While acknowledging the strong relationship, he pointed out that the current volume of bilateral trade remains modest. He shared that Pakistan's exports to Turkiye during FY 2023–24 amounted to $337 million, while imports stood at $491 million, making the total trade volume around $828 million. He stressed the need for greater efforts to unlock the untapped trade potential and fully utilize the Trade in Goods Agreement, which came into effect in May 2023. He expressed optimism that with mutual collaboration, the trade volume could be increased to at least $5 billion in the coming years. He also identified significant potential for growth in areas such as textiles, construction, food processing, pharmaceuticals, energy, tourism, sports goods and especially the information technology sector. LCCI vice president underlined the role of business institutions in strengthening bilateral ties and assured that the Lahore Chamber is ready to take the lead in promoting joint ventures, hosting trade delegations, participating in international trade exhibitions and organizing Pakistan–Turkiye business forums. He added that the Turkish Consulate General in Lahore can serve as a vital link between Turkish investors and the Pakistani business community, particularly in a vibrant city like Lahore, which serves as the cultural, industrial and economic hub of Punjab. Copyright Business Recorder, 2025
Express Tribune
23-06-2025
- Business
- Express Tribune
Turkiye looks for jointventures in IT, tourism
Turkiye Consul General Durmus Bastug on Monday visited the Lahore Chamber of Commerce and Industry (LCCI) to explore ways to expand trade and investment cooperation with Pakistan. Key areas that came up for discussion were technology, tourism and agriculture along with regular exchange of business delegations. The ambassador said that many leading companies of Turkiye were already operating in Pakistan, which reflected the confidence of Turkish investors in the South Asian country's market. He stressed the importance of strengthening business-to-business ties and shared Ankara's interest in initiating more joint ventures with Pakistani firms. Speaking on the occasion, LCCI Vice President Shahid Nazir Chaudhry highlighted Turkiye's consistent support for Pakistan on key international matters. While acknowledging the strong relationship, he pointed out that the current volume of bilateral trade was modest. Pakistan's exports to Turkiye during fiscal year 2023-24 amounted to $337 million while imports stood at $491 million, bringing the total trade volume to around $828 million. He stressed the need for greater efforts to unlock the untapped trade potential and fully utilise the Trade in Goods Agreement, which came into effect in May 2023. He expressed optimism that with mutual collaboration, the trade volume could be increased to at least $5 billion in the coming years.
Express Tribune
22-04-2025
- Business
- Express Tribune
PM Shehbaz arrives in Turkiye for two-day official visit
Listen to article Prime Minister Shehbaz Sharif has arrived in Ankara on a two-day official visit to Turkiye at the invitation of Turkish President Recep Tayyip Erdogan, Radio Pakistan reported. Upon arrival at the airport, he was received by Turkiye's Defence Minister Yashar Guler. The visit underscores the deepening diplomatic and economic ties between Pakistan and Turkiye. During his stay, the PM will hold a one-on-one meeting with President Erdogan. The two leaders are expected to discuss a broad range of issues, including enhancing bilateral cooperation, expanding trade and investment opportunities, and addressing key regional and global developments. In addition to his political engagements, the PM will also meet with Turkish investors and business delegations to promote economic collaboration between the two countries. The PM is accompanied by Deputy Prime Minister Ishaq Dar, Information Minister Attaullah Tarar, and Special Assistant on Foreign Affairs Tariq Fatemi. The visit comes in the wake of Turkish President Recep Tayyip Erdogan's visit to Islamabad in February, where both leaders co-chaired the 7th session of the High Level Strategic Cooperation Council (HLSCC). During the February session, Pakistan and Turkiye signed 24 MoUs, reaffirming their shared commitment to strengthen bilateral ties across multiple sectors. A major highlight of the meeting was the agreement to increase bilateral trade to $5 billion. Key areas of cooperation outlined in the agreements included an expansion of the Trade in Goods Agreement, enhanced collaboration in the defence sector, and efforts to attract Turkish investment in Pakistan. The two sides also agreed to operationalise the Islamabad-Tehran-Istanbul trade corridor and to deepen cooperation in areas such as energy, finance, and digital trade.
