SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

MINOR ASSIGNMENT

 REGIONAL (OR) ECONOMIC INTERGRATION:

1) UNITED STATES OF AMERICA
The Pakistan Regional Economic Integration Activity (PREIA),
sponsored by USAID, is a five-year, USD 14.4 million projects aimed
at advancing Pakistan's trade sector. PREIA will collaborate with
public and private sector stakeholders in Pakistan to boost trade and
transit competitiveness, resulting in increased trade and transit
volumes. PREIA will also promote enhanced regional economic
integration with Pakistan's neighbors by increasing access to
international and regional markets through technical assistance and
capacity growth.
o MAIN ACTIVITIES OF PREIA:
 Improve the government of Pakistan's capacity to establish and
enforce policy, law, and regulation reforms that improve Pakistan's
trade enabling environment.
 Increase the involvement of the private sector and civil society in
policymaking;
 Customs should improve regional exchange and transit facilitation, as
well as regional business-to-business ties.

2) UNITED KINGDOM:
Pakistan's exports to the United Kingdom are currently regulated by
the EU's Generalized Scheme of Preferences (GSP) plus scheme;
although that will change once Brexit takes effect in 2019. The
feasibility of a free trade agreement (FTA) between Pakistan and the
United Kingdom (UK) post-Brexit is discussed in this PBC Report,
SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

which recommends that Pakistan take a constructive approach in

initiating negotiations leading to the signing of an FTA with the UK.
Pakistan's merchandise trade balance with the United Kingdom is
positive and rising. Pakistan's fourth largest export market is the
United Kingdom.
Currently, the GSP+ scheme gives 96 percent of Pakistani exports
preferential market access to the United Kingdom. Maintaining
Pakistan's current level of merchandise exports to the UK requires the
continuation of the GSP+ or a similar arrangement. However, as
Pakistan narrows in on its ability to export to the UK, the growth rate
of exports covered by the GSP+ is expected to slow. Furthermore, the
remaining 4% of goods that aren't protected by the GSP+ are seeing a
downward trend in global imports, indicating a gloomy outlook for
growth.
Even though Pakistan's potential to import from the UK ($18.7
billion) is greater than its potential to export to the UK ($9.1 billion),
the large distances between the two countries and consumer
preferences can prevent these numbers from being realised, even if an
FTA exists. Furthermore, in goods with a high import potential for
Pakistan, the tariffs imposed on the UK are similar to those imposed
on Pakistan's existing FTA partners.

3) AUSTRALIA:
Pakistan and Australia have had a Bilateral Trade Agreement in place
since July 12, 1990, with the stated goal of “strengthening,
facilitating, and diversifying” trade between the two countries. In
December 2017, the Pakistan-Australia Joint Trade Committee (JTC)
signed an MOU in Canberra to improve bilateral trade ties and boost
economic development.
SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

There are 2,658 product lines that Pakistan could export to Australia.
With available data, the total trade potential of these 2,658 products
currently exported by Pakistan to Australia is $5.72 billion. Pakistan's
overall trade opportunity with Australia in the top 100 high-potential
goods is $4.14 billion.
In Pakistan, Australia has the potential to export 4,116 product lines.
With available data, the total trade potential of these 4,116 products
currently exported by Australia to Pakistan is $27.10 billion. The
overall trade potential of Australia's top 100 high-potential exports to
Pakistan is $15.30 billion dollars.
To benefit from an FTA, Pakistan will need time to develop capacity,
primarily in the textile sector. Based on current bilateral trade trends,
Pakistan will be better off signing a limited Preferential Trade
Agreement (PTA) with Australia rather than a broad and all-
encompassing Free Trade Agreement (FTA).

4) CANADA:
The global trade outlook for Pakistan and Canada, as well as the
markets in which the two countries actively trade and the state of
bilateral trade between the two countries. The effect of Canada's most
important trade agreements, like CETA and NAFTA (now USMCA),
on trade, investment, and industry is then analyzed. The report ends
with an examination of Pakistan's major export industries, namely
agriculture and textiles, and the potential effects on these industries if
a free-trade agreement between Pakistan and Canada is concluded and
signed.
The value of Pakistan's top 20 commodities with the greatest export
potential to Canada is $2.9 billion. Twelve of these are textiles and
textile products, with the majority of them falling under the sub-
category of kitted and woven apparel. Rice is one of those
SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

commodities that Canada imports in small amounts but has enormous

potential, with a market value of up to $289.2 million. Pakistan is also
one of Canada's top suppliers, especially in the import of textiles and
textile products. The United States and Bangladesh, both of which
have trade deals that offer them tariff advantages, are competing
against Pakistan for a greater share of Canada's market for these
goods. This report also looks at Canada's export potential to Pakistan,
which is estimated to be $6.1 billion in 2018. Iron and steel,
machinery, motor vehicles, and mechanical equipment are the most
common categories for high-potential products.

5) RUSSIA:
Pakistani-Russian trade was worth $381 billion in 2015, up from
$454 million the previous year. It was primarily made up of $285
million in Pakistani imports for Russia. Edible Fruits, Articles of
Apparel (HS 62 and 61), Edible Vegetables, and Cereals made up the
majority of Russia's imports from Pakistan.
Paper and paperboard, edible vegetables, iron and steel, inorganic
chemicals, and machinery were among Russia's $95.7 million in
exports to Pakistan.
Based on 2014 trade trends, the total potential trade between Pakistan
and Russia was projected to be $71.8 billion (including petroleum
products). Exporting the following product categories to Russia has a
potential value of about $24.5 billion for Pakistan: Women's and girls'
cotton trousers and shorts not knitted; Men's and boys' cotton trousers
and shorts not knitted; Instruments and appliances used in medical or
veterinary sciences; and Portland cement.
Between 2014 and 2015, Russia's trade surplus shrank by $55 billion.
This is attributable to sanctions levied on Russia by the United States,
Canada, Australia, and the European Union, among others. President
SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

Putin declared a pivot in Russia's foreign policy in 2012, called the

"Pivot to Asia." As a result, the Russian government is working to
strengthen Russia's relations with Asia, establishing mutually
beneficial economic ties and raising Russia's profile in Asian regional
organizations.