FPCCI underscores need of exploration of MERCOSUR.
Karachi -- President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Engr. Daroo Khan Achakzai has stressed on the need of exploration of MERCOSUR which is a regional trade bloc of South America comprising emerging economies of Argentina, Brazil, Paraguay and Uruguay.
The group was founded in 1991and other countries of South America are also associated members . He said that it is a fifth largest market of world; functioning as a customs union and free-trade area with a combined market of 265 million people with nominal GDP US$ 3.3 trillion and average per capita income US$ 12,000. While commenting on Pakistan-MERCOSUR, he stated that the share of common market
of South America is less than one percent in trade of Pakistan. Lack of information; mutual understandings, business interactions, connectivity and people to people contact between Pakistan and MERCOSUR are the reason of the low economic relations.
The President FPCCI said that Pakistan-MERCOSUR Framework Agreement was signed in July 2006 to initiate the process of negotiation to conclude a Preferential Trade Agreement for the enhancement of trade volume.
He added that Pakistan is co-member with South American countries in another trade agreement other than WTO; that is Global System of Trade Preferences (GSTP) which came into being in 1989 but no significant steps have been taken to utilize these agreements for the enhancement of trade. He urged the
government to take measures for exploring these untapped market where there is free moments of goods and same technical standards for food, agriculture and other products; indicates the exploration of one market either Brazil or Argentina also helps in penetrating the other markets of South America.
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