Pakistan, Indonesia to enjoy mutual benefits on CPO, orange trade
Tanjung Priok Port bars the entry of horticultural commodities, including Kinnow oranges, of which Pakistan is one of the world’s largest producers. The restriction was put in place due to lack of capacity at the country’s busiest port. “The accord also grants the recognition of pest-free areas for horticultural imports from the country, which is necessary for Pakistan’s oranges to enter the port. The recognition will be renewed annually to prevent possible pest and fungal outbreaks as a safety measure,” Banun said after the signing ceremony.
The MRA is a follow up to a preferential trade agreement (PTA) inked by the two countries last year, which removed 25 percent import duty on Kinnow oranges and allowed Indonesia’s CPO to penetrate Pakistan’s market.
“Although the PTA was signed last year, Pakistan had yet to remove its import duty on our CPO exports. With the various requirements Pakistan had to meet to get through our quarantine procedure and to have our CPO facilitated to enter their market, the MRA was needed,” Banun explained.
With a series of regulations issued by the agriculture and trade ministries, the government has tightened horticultural imports by reducing entry gateways for imports via only four ports — excluding overloaded Tanjung Priok — and introducing importer licenses and rules on cold storage facilities for fruit and vegetables.
Bilateral trade between Indonesia and Pakistan amounted to $1.65 billion last year, up 44.74 percent from 2011, with Indonesia exporting $1.38 billion worth of goods and importing $273.22 million worth.
Source: brecorder.com
