ISLAMABAD, June 24 (INP): Chairman Regional Standing Committee of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Ahmad Jawad has said we may see a decline in Pakistani exports to UK in the coming months as Britain voted to leave the European Union, where before EU was in charge on trade policy and the trade negotiations with non-EU countries are conducted by the European Commission on the basis of a negotiating mandate from the member countries’ trade ministers.
Jawad said Ministry of Commerce may immediately coordinate the UK officials to find the way how shipments may continue between two countries in this build scenario, where assumptions now there about the trade agreements
However, he thinks the key to economic success would lie in the trade deals the UK could strike with the rest of the world. The disruption for British business could last well beyond the time taken to reach a divorce settlement with the EU (which is expected to take at least two years). Trade agreements between the EU and 52 other countries, which currently cover the UK, could not just be lifted off the peg.
On the other hand we saw Pakistan has almost failed to fully exploit the European Union’s GSP plus facility on the back of government’s poor policy response and especially indifference towards the country’s top export oriented textile sector, the country’s total exports dwindled by 14.4 percent during July-December 2015/16.
Pakistan had entered the GSP plus club where UK was included from January 1, 2014, enabling it to export textile goods to 27 European countries till 2017 without any duties. Under it, almost 20 percent of Pakistani exports entering the EU market at zero tariff and 70 percent at preferential rates. EU accounts for 25 percent of Pakistan’s exports and 10 percent of imports. The bilateral trade volume is around $11 billion. Pakistan is exporting mainly textiles and leather products to EU and imported mechanical and electrical machinery, chemical and pharmaceutical products.
Jawad also said UK is amongst the largest exporters to Pakistan with over 100 British companies physically operating in Pakistan. In 2014, UK goods exported to Pakistan were worth £618 million. Bilateral trade in goods and services increased from £1.9 billion in 2009 to 2.2 billion in 2013.
As per Trade Map of ITC, in 2015 UK imports value from Pakistan was $1675,348 dollars and the major commodities were textile, mangoes, vegetables, leather, footwear, cereals etc.
