Pakistan and Sri Lanka signs Memorandum of Understanding for promotion of bilateral trade
Pakistan’s Rawalpindi Chamber of Commerce and Industry (RCCI) recently signed a Memorandum of understanding (MoU) with theCeylon Chamber of Commerce (CCC) of Sri Lanka.
The MoU aims to encourage mutual understanding and promote business
and friendly relations between the industrial, trade and business communities of Pakistan and Sri Lanka.
Pakistan is the 2nd largest trading partner of Sri Lanka within the South Asian region. The level of bilateral trade between Pakistan and Sri Lanka increased as a result of the Free Trade Agreement (FTA).
Trade between the two countries increased from US$ 225 million to over US$ 390 million during the last four years, with the positive support gained from the FTA.
Sri Lanka was the first country to sign a Free Trade Agreement (FTA) with Pakistan. FTA between Pakistan and Sri Lanka is operational since 2005. Under FTA, Sri Lanka and Pakistan have agreed to offer preferential market access to each others’ exports by way of granting tariff concessions.
Sri Lanka enjoys duty free market access on 206 products in the Pakistani market, while Pakistan, gained duty free access on 102 products in the Sri Lankan market. The aim of a free trade agreement is to reduce barriers, to facilitate exchange so that trade can grow as a result of specialization, division of labor, and most importantly via comparative advantage.
- Asian Tribune -