ISLAMABAD : The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Research & Development (R&D) has prepared a study report on the proposal of Kenyan mission for negotiating product specific Free Trade Agreement (FTA) with Pakistan.
The FPCCI report explores different pattern of preferential treatment in bilateral trade and has found a new pattern of bilateral trade to enhance volume of trade.
Research department reports states the countries are now seeking preferential treatment for the potential product which is a kind of product specific FTA and an example of Remodeling of Barter System. In this regards FPCCI report has analytically examined Pakistan and Kenya bilateral trade which is confined to few products included tea, rice, coffee, pharmaceutical products, furniture dominate.
The Kenya has desired to negotiate preferential treatment for tea in the form of product specific FTA. Pakistan is the largest importers of Kenyan Tea- It imported tea worth of 592.837 million dollars out of total US $ 1,424.429 million export of tea from Kenya.
Similarly, Pakistan’s Rice shares US $229.104 million in the total rice import of US $ 259.043 million of Kenya, Pharmaceutical products shares US $ 6.358 million out of total Kenyan pharmaceutical imports of US $ 518.284 million, other items that have major share in Pakistan’s export basket for Kenya are textile and furniture, etc.
The research department of FPCCI has extensively analyzed bilateral trade between Pakistan and Kenya and in its report renamed the Pak-Kenya negotiation for product specific FTA as Remodeling of Barter System.
The FPCCI R&D after analyzing various avenues of trade between Pakistan and Kenya also suggested that both countries should work to develop a mechanism to find out possible revenue loss/generation if such agreement implemented.
This kind of preferential treatment other than PTA and FTA would be a new kind of product specific FTA similar to Barter System and would be treated as Remodeling of Barter System.