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Published 15 Dec, 2007 12:00am

Turkish NTBs impeding growth in mutual trade

ISLAMABAD, Dec 14: Pakistan has questioned Turkey’s trade regime embedded with non-tariff barriers (NTBs) restricting smooth flow of tradable commodities between the two countries, officials told Dawn on Friday.

The issue was officially raised at the regular trade policy review of Turkey at the Geneva-based World Trade Organisation (WTO) recently. Pakistan’s Permanent Representative to WTO Dr Manzoor Ahmad presented the country’s position at the meeting. Pakistan had also submitted written questions with Geneva-based Turkish mission for seeking details about the NTBs on Pakistan’s specific exportable products.

Though, the MFN applied tariffs were reduced from 15 per cent to 4.2 per cent in Turkey and there was extensive privatisation in almost all sectors but due to these NTBs countries like Pakistan could not gain maximum market access for its potential markets.

The envoy in the country’s statement said that the reform process has made Turkey as one of the fastest growing economy with GDP growth of almost seven per cent on average, doubling of exports in four years, increase of FDI by ten times and bringing inflation down to a manageable single-digit level.

However, Dr Manzoor said that the bilateral trade could grow further if some non-tariff barriers like reference pricing, especially on Pakistan’s rice and textile products could be removed by Ankara.

An official in the commerce ministry said Pakistan was also a third party of the US case of dispute settlement body (DSB) of WTO, which recently in the decision asked Ankara to remove cumbersome procedures and implicit barrier to market access for rice.

Pakistan’s envoy in the country statement said that the Turkey reform process was based on three pillars enhancing openness, competitiveness and fiscal discipline. Other significant reforms include extensive privatisation in almost all sectors including banks, telecom, energy, ports, tax reforms, social security reforms and effective implementation of IP regime.

Dr Manzoor said Pakistan and Turkey had a history of strong relationship and common participation in ECO Trade Agreement, OIC Trade Preferential System and D-8 PTA.

On bilateral front, trade volume has nearly tripled during the past four years, rising from $175 million in 2002 to $506 million in 2006. Trade on both sides is primarily based on manufactured goods, including textile, clothing and chemicals. Government-to government coordination, business-to-business understanding and people-to-people cooperation are the hallmarks of bilateral ties of the two countries, he added.

The envoy said to translate cordial relations into mutual economic gains, both countries had signed a framework agreement in 2004 and were in the process of negotiating a scheme of exchanging preferential concessions.

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