ISLAMABAD: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Acting President Shaikh Khalid Tawab expressed serious concern over the untapped market of South America, which is a market of more than 400 million people with an average per capita income of $12,000.
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He stated that Argentina, Brazil, Peru, Venezuela, Chile and other countries of region don’t need any introduction in Pakistan if we discussed these under sports, geography, culture and ethnicity but in economic scenario these are untapped markets for trade and investment relations.
In a statement issued Saturday, he said that lack of information, mutual understandings, business interactions and people to people contact between Pakistan and South American countries are the grounds for low economic relations.
Pakistan signed an agreement with a common market of South America (MERCOSUR; the biggest trade bloc of South America) on Trade in July 2006, which initiated the process of negotiation of Preferential Trade Agreement, but there is no update regarding the implementation of this agreement.
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On the other hand, Pakistan is co-member with South American countries in a trade agreement other than WTO; that is Global System of Trade Preferences (GSTP), which came into being in 1989 but functionality is not up to the mark.
He indicated that the people’s ethnicity of South American countries is similar to Europe, Spain, Portugal and the US. He further stated that at present the share of this common market of South America is just 0.6% in export of Pakistan and 1.6% in imports of Pakistan.
He urged the government to utilise Pakistani trade missions in Argentina, Brazil, Chile and other countries for exploring the market and opening of display centre in embassies for displaying the Pakistani products.
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Moreover, the government should send fact-finding missions and formulate trade delegations for exploring these markets as Pakistan didn’t send their delegation in the past, he suggested.
He stated that Argentina is the gateway to accessing the market of South Africa. Moreover, holding exhibitions and participation in exhibitions of South American countries can also improve trade relations.
He also highlighted that there is a huge demand of Halal products in South American region.
Courtesy : Express Tribune