Iran, Pakistan agree to reduce duties on many items
A preferential trade agreement (PTA) between
Iran and
Pakistan will see the two countries lower customs duties on 647 items by an average of 18%.
Pakistan has already approved the agreement, and it will become effective once
Iran does the same.
Both countries signed the PTA in March 2004; however, the completion of the PTA was subject to the finalization of the duty issues and its ratification by the two governments.
In line with the PTA,
Pakistan would give duty concessions on 338 items to
Iran. In return,
Iran would give concessions on 309 items. Moreover, the PTA calls for bilateral trade to increase to $1 billion per year. The duty concessions are expected to help the countries achieve this target.
The duty concessions
Pakistan is offering to
Iran cover fruits, vegetables, tea seeds, palm oil, minerals, chemicals, plastic, articles of rubber, article of apparel, glassware, iron, steel, and some machinery parts.
On the other hand, duty concessions that
Iran will give to
Pakistan cover fruits, vegetables, pharmaceutical products, plastic products, rubber, iron, fabrics, articles of apparel, bed linen, footwear, sanitary ware, cutlery, rice, and some machinery parts.