Pakistan and Indonesia have agreed on concession for 20 different items during bilateral negotiations under the Preferential Trade Agreement (PTA). Both sides discussed 20 tariff lines and Indonesia has agreed to give concessions on major exports from Pakistan including rice, textile, ethanol, kinnow and mangoes. The Indonesia-Pakistan Preferential Trade Agreement was signed in February 2012.
Concession on 20 tariff lines was a major success for Pakistan and now Pakistan’s kinnow exports to Indonesia will increase from 18 to 35 million tons and mangoes' exports will increase to ten million tons in a year. Before the PTA, Indonesia granted only two months for exports of Pakistan’s kinnows and mangoes but now after renegotiation, Pakistan can export these fruits to Indonesia for the whole year and any time limit has been removed.
Through these steps, Pakistani agricultural products will gain greater market access in Indonesia. The activation of PTA followed the signing of a Mutual Recognition Agreement on plant quarantine and sanitary and Phytosanitary measures between Indonesia and Pakistan. Pakistan and Indonesia have a current annual trade volume of $170 million, which is expected to increase after renegotiations on PTA between the two countries. Pakistan wants the same concessions from Indonesia which it is getting from other countries like China, India, Sri Lanka and Asean.

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