Pakistan is interested in a free trade agreement (FTA) with countries of the Latin America trading bloc. The trade bloc comprises Argentina, Brazil, Paraguay, Uruguay and Venezuela.

Latin America is one of the most important non-traditional markets where Pakistan’s market share is negligible despite a huge potential for both traditional and non-traditional exports. A free trade agreement will provide Pakistan an opportunity to diversify exports and markets and enhance trade with Latin American countries in order to introduce new products in pharmaceutical, information and communications technology, auto parts and light engineering sectors.

It will also benefit the textile industry, which is currently Pakistan’s biggest exporter. And it will help in strengthening Pakistan’s business and trade relations in the region and will provide a level playing field to Pakistan vis-a-vis its competitors in Latin America.

Argentina and Brazil in particular are lucrative markets. These countries are among world leaders in agro-food production and adoption of modern technology in making innovations in seed production and food processing.

Pakistan hopes the preferential trade agreement it signed in 2006 will lead to a free trade agreement. So the free trade agreement will create win-win opportunities for both Latin America and Pakistan.