Indonesia, Pakistan agree to reduce tariffs for 500 commodities
JAKARTA: Indonesia and Pakistan governments have agreed to reduce tariffs for more than 500 commodities traded by both countries. Significant tariff reductions will be applied to Indonesian crude palm oil CPO and Pakistan’s kino oranges.
The agreement was cited in Preferential Trade Agreement PTA signed by Trade Minister Gita Wirjawan and Pakistan ambassador, Sanaullah last week. Gita yesterday said Indonesia offered tariff preferences for 216 products such as fresh fruit, ready to wear clothing, sports equipment, leather goods and other industry products.
Pakistan offered 287 products including coconut oil, candy, cocoa products, toothpaste, soap, rubber, as well as wooden and electronic products. “This is an exceptional relationship”, Gita said.
He said it will allow Indonesia’s palm oil to be more competitive in Pakistan. Indonesia’s CPO will now enter Pakistan with 15 percent tariff, lower than the previous 40 per cent. Conversely, Pakistan asked for tariff reduction down to zero per cent for its kino oranges.–PPI