Even when a collective agreement on trade is reached after a long and tedious process of negotiations and balancing safeguards for individual concerns, as it was in the form of the ECO Trade Agreement, implementation is lacklustre and painfully slow. It took a decade to conclude in 2003. Member states were required to lower tariff barriers to a maximum of 15 per cent in a period of eight years. This has not yet happened. As a result, the ECO Vision to set up a free-trade area by 2015 will have to be pushed farther into the future.
It might be suggested that the continuing conflict in Afghanistan stands in the way of liberalising intra-trade. That does not seem to be the case. With a share of 35 per cent, Afghanistan was the largest contributor to the intra-ECO trade in 2009. As opposed to this, Turkey contributed only 4.6 per cent, despite being the largest trading member of the ECO. It cannot be said that the region has low potential. Tremendous potential exists, not only in traditional trade flows but also in energy. The region could be an East-West bridge in terms of economic connectivity. However, the implementation of the Transit Transport Framework Agreement, 2006 is slow. Some members have still not signed or ratified it. Work on the feasibility of the interconnection of power systems started in 2005 by NESPAK had to be abandoned in 2008 because of poor progress.
The economic case for liberalising intra-regional trade is strong and progress can result in high regional growth. What is lacking is political will, which has led to weak implementation arrangements and organisational inertia. The story of the other organisation in the region, South Asian Association for Regional Cooperation, is no different. The successes of Latin American and East Asian countries in integrating their economies have not yet impressed the Central and South Asian leaders enough to appreciate that the sum of the separate national prospects may be less than the collective outcome for growth, poverty reduction and sustainable development.
Published in The Express Tribune, October 19th, 2012.
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Pakistan could target Iran, Turkmenistan and Azerbaijan for targeting trade expansion.This is the energy corridor of the future years.Trade in services like aviation, banking, and tourism would provide the initial push.A flight by PIA to Ashgabat and Baku would facilitate travel not only to these countries but to Europe as well.By targeting on these countries Pakistan could also by-pass Afghanistan which is getting too much attention and consuming too much of national energy without any long term strategic benefits,
Mr. Imran Khan as a Commerce and Trade Officer in the Government can you explain the reason when you stated that"It is very unfortunate that our region has not experienced the regional economic connectivity yet which other regions have experienced few decades ago"? The fact is that Turkey being the "developed" economy among the ECO countries, it cannot consume our raw materials to make a significant dent in our economy. Besides, Turkey like many western countries with rising labour cost prefers cheap Chinese products than making its own. In our country of 180 million population with at least 50 million middle and upper middle class, we have a huge domestic market. Our policy makers lack foresight. Example-recently we signed an agreement with Bosnia on military. How does that feed us? Why did not we sign agreement to supply our fine textile and steel products?
As a Commerce and Trade Officer in Civil Service of Pakistan, it was astonishing for me that the tarriff duties and details of the import regimes applicable for the administration of the intra regional trade of the ECO member counteries were not available with their respective Ministries of Commerce till the few months back. Undoubtedly, the ECO region has an economic potential but tthe actual trade is far from the potential of the trade among the ECO counteries.Mr. Kamran Chaudhary made a comment that the ECO counteries can import products from China, India and Malaysia much cheeply implying that there is a little potential of trade amongst the ECO counteries. The factors that determines the cost competitiveness of any product in any market includes the transportation cost and the tariff duty applied on products. These two price determining factors clearly favours the regional trade between the ECO counteries. Free flow of raw materials, finished products and the possibility of energy trade amongst the ECO members speaks volumes about the potential of the regional trade. I hold a conviction that the level of regional progress and development is always reflected in the volume of the regional trade. It is very unfortunate that our region has not experienced the regional economic connectivity yet which other regions have experienced few decades ago.
Pakistan is holding ECO trade and economic progress as hostage by denying access through its territory to India.
In the process, it is denying its won citizens economic progress that would inherently follow!
Trade between unequal partners does not work. Turkey market is not big enough to accommodate Pakistan. Iran under the present leadership does not have the economic muscle to contribute to the regional economic cooperation. Pakistan leaders over the years have been engaged in India-centric self-deceiving money-wasted policy at the cost of our economic development. What we make that Turkey or other developed economies cannot buy from countries like our "all weather" friend China, Indonesia and India. Are we competitive in the international market? Our leaders are good a talk but cannot deliver. Stop begging, bring back the money hoarded overseas to build the country.
Simple Turkey sees itself as a Western liberal nation........IT wants to join EU...........