ISLAMABAD, April 19: Chile is ready to open its market to Pakistani agricultural products months after both the governments opened their diplomatic missions in Santiago and Islamabad.
Two Memorandums of Understanding (MoUs) regarding cooperation in agricultural research and matters related to Sanitary and Phytosanitary (SPS) measures of the World Trade Organisation were signed by both the countries here on Thursday.
The Chilean minister of state, Ms Maria Cecilia Levia, and federal minister for agriculture, Sikandar Hayat Bosan, signed the agreement here at a meeting.The focal agencies for implementation of the agreement on research are Pakistan Agricultural Research Council (PARC) and Chilean Fund for Agriculture Innovation (FIA) and National Institute of Agricultural Research (INIA).
The Pakistani department of plant protection, Marine Fisheries Department (MFD) and Animal Quarantine will collaborate with the Chilean Servicio Agricola y Ganadero (SAG) of the Ministry of Agriculture on the SPS-related matters.
“This is the first formal linkage and a mechanism for cooperation on agriculture research between the two countries,” Mr Bosan observed at the MoU-signing ceremony.
He said Chile was the largest trading partner of Pakistan in Latin America, but agriculture exports to the country were still very limited.
Experts of both the countries have already met and discussed some of the issues involved in SPS and products have also been identified for trade. Export of rice, wheat, spices, dry legumes and grains, dry fruits and fresh fruits, including mango and vegetables, were identified from the Pakistani side.
The Chilean side is interested in exporting apples, pears, table grapes, kiwi, fruits, citrus, stone fruits, blue berries and avocados, forestry products (mainly softwood) and dry fruits.
“The Chilean government has liberalised trade and hopes to become one of the 10 leading exporters of agri-products. We are ready to open our market for Pakistan,” Ms Maria observed.
Mr Bosan has identified fishery as one of the priority area where Pakistan would like to collaborate with Chile. The framework on SPS will provide a system for information sharing on pest concerns and mitigation measures which is the basis for initiating trade of agricultural products.
Issues, such as biological control of pests, integrated pest-management, true potato seed, potato tuber, cereals, legumes, genetic resource, bio-informatics and tissue culture and milk production technology have already been identified by the Chilean government for cooperation on agriculture research.
An official of the federal agriculture ministry told Dawn that Chile’s exports amounted to $56 billion and imports $34 billion in 2006, out of which imports from Pakistan were $37million and exports just $1.9 million.
He said Pakistan could export readymade garments, textile and yarns, bed-wear, rice, wheat, tropical fruits, pharmaceutical products, leather products, jewelry, seafood, carpets, handicrafts etc. while it can import wood soft, copper, iodine, fertiliser, newsprint and other papers, fishmeal, agro-industrial products, seeds, wool etc from Chile.
He said Pakistani exporters could benefit from flat tariff rate of six per cent on imports into Chile. They can also use Chile as springboard for boosting exports to Latin American countries as Chile has signed Free Trade Agreements (FTAs) with Canada, US, Mexico, Central America, European Union and South Korea.
