Case for Pakistan-Usa Free Trade Agreement
Case For Pakistan-USA Free Trade Agreement
Majyd Aziz
Preamble:
Pakistan and the United States of America are strong trade and investment partners and whatever market access is available to Pakistani exporters is reflective of the importance that USA holds for Pakistani goods, especially textiles. However, for various economic, political, military, and social reasons, there has seldom been a solid support for allowing liberal market access to Pakistan. So much so, the much-touted initiative of Reconstruction Opportunity Zones succumbed to political exigencies as well as two major events in Pakistan. One was the imposition of Emergency by President Pervez Musharraf and the second was the tragic assassination of Benazir Bhutto. These two events put paid to the ROZ initiative.
Over the last many years, officials from both the countries have continued their negotiations for a Bilateral Investment Treaty. BIT was seldom on the radar of Pakistani economic planners until some months ago Chairman Pakistan Board of Investment, Salim Mandviwalla, took the process forward in one of his official trips to Washington and the ball has started rolling again. Notwithstanding the ignorance of, and lack of knowledge of, BIT by many a business leader, the fact remains that a successful negotiation of the Treaty and its immediate implementation by both the countries would pave the way for the negotiations on the Free Trade Agreement.
Rationale:
Pakistan has been rather lethargic in executing successful Free Trade Agreements with her various trading partners and, even then, except for certain items or sectors, Pakistan has not been able to avail and utilize the benefits and advantages of FTA. Pakistan has signed FTAs with Sri Lanka, China, and Malaysia and of course, for whatever is its worth, Pakistan is also a signatory to the South Asia Free Trade Agreement (SAFTA) as decided by SAARC countries.
The Pakistan-Sri Lanka FTA was signed in June 2005. For the year
Majyd Aziz
Preamble:
Pakistan and the United States of America are strong trade and investment partners and whatever market access is available to Pakistani exporters is reflective of the importance that USA holds for Pakistani goods, especially textiles. However, for various economic, political, military, and social reasons, there has seldom been a solid support for allowing liberal market access to Pakistan. So much so, the much-touted initiative of Reconstruction Opportunity Zones succumbed to political exigencies as well as two major events in Pakistan. One was the imposition of Emergency by President Pervez Musharraf and the second was the tragic assassination of Benazir Bhutto. These two events put paid to the ROZ initiative.
Over the last many years, officials from both the countries have continued their negotiations for a Bilateral Investment Treaty. BIT was seldom on the radar of Pakistani economic planners until some months ago Chairman Pakistan Board of Investment, Salim Mandviwalla, took the process forward in one of his official trips to Washington and the ball has started rolling again. Notwithstanding the ignorance of, and lack of knowledge of, BIT by many a business leader, the fact remains that a successful negotiation of the Treaty and its immediate implementation by both the countries would pave the way for the negotiations on the Free Trade Agreement.
Rationale:
Pakistan has been rather lethargic in executing successful Free Trade Agreements with her various trading partners and, even then, except for certain items or sectors, Pakistan has not been able to avail and utilize the benefits and advantages of FTA. Pakistan has signed FTAs with Sri Lanka, China, and Malaysia and of course, for whatever is its worth, Pakistan is also a signatory to the South Asia Free Trade Agreement (SAFTA) as decided by SAARC countries.
The Pakistan-Sri Lanka FTA was signed in June 2005. For the year