FTA with Malaysia

6 May 2007: Islamabad

Pakistan and Malaysia will start negotiations on Monday to conclude the proposed free trade agreement (FTA) between the two countries, which is expected to be operational from July 1.

Both sides are expected to hold final round of negotiations in Islamabad to give final touches to the negative lists and other preferential lists of the agreement. A high-level Malaysian technical delegation will here arrive on Sunday.

An official source told Dawn that both sides would strive to develop consensus on some controversial parts of the agreement, which include Malaysian request for reduction in duty on palm-oil under the agreement.

Pakistan seems reluctant to give any reduction in duty on palm oil, which is one of the major revenue spinners.

On the other hand, Malaysian authorities have linked market access for Pakistani textile products with reduction in import duty on palm oil. The two sides are expected to make a breakthrough in the services part of the negotiations.

Link: The Dawn