News
US, Pakistan on Track Towards Strengthened Trade Relations
ISLAMABAD, March 3 : Pakistan’s Commerce Secretary Tasneem Noorani, who was on a two-day visit to Washington on 28th February to 1st March, 2005, met US officials to discuss ways to move forward the ongoing dialogue between the two countries “for deepening bilateral trade relations”.
His visit was a follow-up to last year’s Trade and Investment consultations and to a recent proposal by the President of Pakistan to the US President for a Free Trade Agreement (FTA) between the two countries. The topic of deepening trade relations between Pakistan and USA has assumed centre stage because of the important role of trade in economic development, poverty alleviation and reduction of extremism in developing countries.
Secretary Commerce made a convincing case to the US counterparts in the Office of the Trade Representative, the State Department and the Commerce Department about the importance of exports in Pakistan’s national and economic security. While in United States Trade Representative (USTR) Office, he met Ambassador Ashley Wills, Assistant US Trade Representative at the State Department, he held meeting with Anthony Wayne, Assistant Secretary, while he met senior officials of the Commerce Department.
Pakistan’s exports are deeply affected by US policies, which allow preferential treatment to a large number of economies, but not to Pakistan. Its effects are felt especially by Pakistan because of the high rates of tariff that USA imposes on textiles and apparels
the mainstay of Pakistan’s exports. The Commerce Secretary called for immediate action by the US Government, as textile trade had become extremely price sensitive after removal of quotas and US Government’s high tariffs hurt Pakistan’s interests.According to sources, officials of both governments explored a number of options to strengthen trade relations, especially to provide a level playing field to Pakistan and increase investment there. Arrangements that the US Government has in place for other countries were discussed. Official will meet again in April or May, 2005 to finalize such
arrangements for Pakistan under the Trade and Investment consultations. Officials also pointed out the two governments were currently negotiating the Bilateral Investment Treaty (BIT). This is a significant development, which in essence marks the beginning of FTA negotiations.US government officials on their part indicated a need for Pakistan to develop positive momentum in trade relations with USA. In particular, they referred to the need to improve the Intellectual Property Environment (IPE) in Pakistan. US officials emphasized the importance of intellectual property in their economy and their government’s commitment to the matter. Ensuring an improved Intellectual Property
Environment was an imperative for the US Government.Its economic importance is coupled with the great influence and access that the IP lobby enjoyed. They hoped for demonstrable progress in the area. US officials also expressed disquiet at the continued litigation that Slemens-Westinghouse faced in Pakistani court. These two issues have affected Pakistan’s status to become a close trade partner of USA. The US official gave great importance for Government of Pakistan to lobby effectively in Congress for closer trade relations between the two countries.
Secretary Commerce also met with representatives of the US private sector and think tanks at the Prestigious Institute of International Economics to exchange ideas to work together for projecting Pakistan’s economic objectives in USA and to collaborate on studies pertaining Pakistan’s trade interests. In his meeting with private sector, the Commerce Secretary explained Pakistan’s improved international competitiveness.
He invited private sector to visit Pakistan and familiarize themselves with business opportunities. Private sector representatives called for continued advocacy on the part of Government of Pakistan with the US Government to prevent trade remedy measures by USA. They also requested rapid progress on transport security to ensure reliable delivery and fast clearance of goods in USA. Importers of textile acknowledged the improvement in quality and the investments made by Pakistani private sector.