TEHRAN (Iran News) – Tehran-Islamabad FTA Needs to Be Signed . Head of Iran Chamber of Commerce, Industry, Mine and Agriculture (ICCIMA) Mr. Gholam-Hossein Shafei during a trade webinar called for signing the free trade agreement between Iran and Pakistan.
On Wednesday a trade webinar was held on reviewing the potentials for trade between Iran and Pakistan where the participants explored ways for boosting economic cooperation between Tehran and Islamabad. Restoring the mechanism of bartering goods, resolving banking problems, pursuing the problems of the trucks at the Mirjaveh border crossing and signing the free trade between the two countries were of the major topics which were discussed during the webinar.
Addressing the webinar, Shafei pointed to the reopening of Mirjaveh border crossing for the shuttle of traders and students and said this act is a positive sign for resumption of activities between the two states and developing economic cooperation.
He noted that despite existing capacities and good economic cooperation, the trade between the two states is below expectation and is not satisfactory. He added that share of each country from the other side’s economy is hardly 2 to 3 percent and it needs more serious actions from both countries either from the state or private sectors for materializing their set targets for bilateral trade.
Shafei said Iran’s joining to the Shanghai Cooperation Organization (SCO) has increased the opportunities for cooperation between Iran and Pakistan and called it the double incentive which should not be missed.
He said Pakistan is an influential country in the SCO that Iran seeks using more from this capacity for increasing its interactions and economic cooperation. He added that although there are great potentials for bilateral cooperation between these two countries, everybody are well aware of the existing problems and it needs finding solutions for them.
Shafei then pointed to some major obstacles like the lack of banking and brokerage avenues between the two states, tariff problems, not fully implementing the preferential agreement and also bans on imports and exports.
He reiterated that despite sanctions Iran has been able to keep its cooperation with most countries and sanctions have not caused any problem for these co-operations, adding however these obstacles in countries like Pakistan can be minimized through cooperation of the related officials.
He also criticized imposition of high tariffs by both countries in some cases and lack of full implementation of preferential trade between the two states are of the other major obstacles in way of increasing cooperation, noting that signing free trade agreement between Iran and Pakistan and creating a stable trade in the regulations and refraining from imposition of bans by the both countries on the items agreed items can remove many hurdles.
Shafei also called for accelerating the signing of the agreement for the launch of arbitration committee between Iran’s Chamber and Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and called for its signing during the ninth trade committee of the two countries for arbitration at the time of the dispute between traders of the two states.
Then Head of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mr. Nasser Hayatt Maggo, for his part, said Iran’s membership in the SCO is an important opportunity for defining new economic cooperation. He said the highest level of good relations of Pakistan with other countries indicate readiness of the country for expansion of economic cooperation with all countries, admitting the current trade volume of Iran and Pakistan is not in acceptable level. He said unfortunately sanctions on Iran have hurt markets of both Iran and Pakistan and many capacities have remained untapped, expressing hope with the removal of sanctions, most problems would be solved.
He added that three border markets are active, adding that God willing six more border markets will be inaugurated soon and due to the current condition in Afghanistan, Iran and Pakistan can have a win-win relation.
He said Pakistan has recently joined the TIR Convention and it has created opportunity for expansion of cooperation in the fields of economy and transit, reiterating that the current trade capacities of Iran and Pakistan are even enough to increase their bilateral trade t $5b per year.
