Pakistan, Sri Lanka chambers to promote trade

Rawalpindi and Ceylon Chambers sign MoU to step up cooperation.

COLOMBO: At the conclusion of a week-long single-country exhibition of Pakistan’s products in Colombo on Tuesday, the Rawalpindi Chamber of Commerce and Industry (RCCI) and the Ceylon Chamber of Commerce (CCC) signed a memorandum of understanding to promote mutual cooperation and enhance trade activities.

Over a dozen members of the RCCI participated in the exhibition titled “Grand Made in Pakistan”, where they displayed a variety of products ranging from manufactured goods to home-based small products. The exhibition was jointly organised by Pakistan High Commission in Sri Lanka and the RCCI.

Pakistan is the second largest trading partner of Sri Lanka in the South Asian region. Bilateral trade has increased following the signing of a free trade agreement (FTA) between the two sides, which came into effect in 2005.

Trade volume swelled to $390 million compared to $225 million four years ago, with support from the FTA.

Sri Lanka was the first country to sign an FTA with Pakistan. According to the agreement, the two countries have agreed to provide preferential market access to each other’s products by granting tariff concessions.

Colombo enjoys duty-free access for its 206 products while Pakistan got duty concession for 102 products.

The aim of the FTA is to reduce barriers to trade and facilitate exchange of goods and services with specialisation, division of labour and most importantly via comparative advantage.

Earlier, the two countries signed a bilateral investment treaty in December 1997, which came into force in January 2000. In addition, a memorandum of understanding was also inked between board of investments of Pakistan and Sri Lanka in February 2007 for strengthening investment cooperation in all sectors.

Published in The Express Tribune, May 2^nd, 2012.