Removal of trade barriers and balance of trade demanded on eve of visit of the president of Indonesia

The Vice President of Federation of Pakistan Chamber of Commerce & Industry (FPCCI) and Patron-in-Chief of All Pakistan Fruit & Vegetable Exporters , Importers & Merchants Association (PFVA) has appealed the President of Pakistan Mamnoon Hussain & the Primer Shahid Khaqan Abbasi that during the visit of President of Indonesia to Pakistan and on eve of his address to the Parliament , elimination of barriers being encountered by Pakistani products in Indonesia shall be emphasized so that both countries can be befitted from the Preferential Trade agreement by enhancement of mutual trade.

In a statement Waheed Ahmed said that the balance of trade between Pak-Indonesia is in favor of Indonesia and Pakistan having opportunity is not taking full advantage of the same. Availing unique opportunity on visit of the Indonesia President, we shall insist to have similar trade concessions like Indonesia is extending to China and Thailand. Exports of Pakistani Agriculture produces like Rice , Fruits and Vegetables can be enhanced up to US$ one billion within three years , however introduction of quota system by Indonesia is proving to be a trade barrier in enhancement of export of Pakistani fruits particularly Kinnow – Waheed deplored . Indonesia has imposed quota system during the current season till 31st December limiting export volume of Kinnow and after a gap of one month the quota has been allocated on 13th Jan. Under the quota system a long span of 24-25 days transit time poses problem since the export consignments coming from Pakistan after this period to Indonesia are rejected. 1400 containers of Kinnow were exported in previous season while 2500 kinnow containers are expected to be exported during the current season and thus Indonesia can emerge as a big market for Pakistani Kinnow , however to attain that , the barriers such as quota system need to be abolished – Waheed stressed . 

According to Waheed Ahmed, Pakistani exporters managed to procure export contract of 65000 tons of rice by successful bid against stiff competition from Thailand and Vietnam, however Indonesia has given dead line for execution of this order by 28th Feb.

The terms and conditions issued by a Indonesian organization Bulog creates difficulty for Pakistan in completion of order by 28 Feb because of lengthy transit time about 20 to 30 days of shipment arrival to Indonesian port, However such terms and conditions are favorable for traditional business partner Vietnam and Thailand because the transit time from Vietnam /Thailand are of only 2 to 4 days. 

Similarly other terms & conditions of tender including letter of credit, penalty term and laboratory test requirements are difficult and consist on lengthy procedures.

Also due to commencement of new Chinese’s year there would be holidays in the Far Eastern countries which would make it very difficult to execute the order within the given dead line because due to festival holidays in far east countries cause in-ordinate delays and congestion on seaports so delivery of rice export consignment may delay from scheduled arrival. So it is mandatory that deadline of tender to complete the order should be extend till mid of April 2018. So the Pakistan exporters may successfully complete export order to increase trade between Pak-Indonesia and play role to balance trade system between both countries.

Waheed emphasized Ministry of commerce that to follow the mutual Preferential Trade agreement in its true spirit, it’s imperative that Pakistan shall insist for removal of trade barriers during forthcoming visit of the Indonesian President. With high frequency of flights by the national carriers of both the countries, the air link shall be improved and banking channels as well as people to people contact between the countries be promoted simultaneously so that economic relationship between the two brothers countries can be further be strengthened and made sustainable – Waheed desired

Posted on: 2018-01-25T18:31:00+05:00