Preferential trade agreement (PTA) negotiations between Pakistan and Indonesia have come to an impasse on kinnow mandarin tariff levels, according to Indonesia’s Trade Ministry
Indonesia’s tariff on imported Pakistani kinnows has become the sticking point for negotiations, with both countries refusing any further concessions on the issue, reported Antara News.
“The negotiations have turned quite tough,” said Gusmardi Bustami, Director General of International Trade at the Trade Ministry Gusmardi Bustami.
Pakistan demanded in negotiations late last year the tariff be reduced to zero per cent from its current 5 per cent, along with duty reductions on a raft of 43 other goods.
In return, Pakistan offered to reduce its import duty on Indonesian palm oil to the same levels imposed on Malaysia.
Indonesia has granted Pakistan two tariff-free seasons, according to Mr Bustami, and has called for import duties to Pakistan to be lowered for a further 35 products of its own.
“We will give what we have pledged at the fifth meeting of the trade negotiation committee, namely nil per cent at the first season and the second season (November-March),” he said. “This is based on approval from our agriculture ministry. Afterwards, the duty will return to 5 per cent.”
“Because Pakistan feels that the kinnow orange is `a` highly political sensitive product they asked for our understanding. We told them that we could not fulfil their request.”
Pakistani kinnows are otherwise looking forward to a good export season across Asia this year, particularly during Chinese New Year festivities, with a high-volume crop following several seasons of lower production.
