Assignment 1.

FTA/PTA
Submitted to: Mam Safia
Submitted By: Umaima Sehar h1957173 Sumaira Shaikh h1957153
Malaika Fatima h1957162
Umm-e- Rumaisa
FREE TRADE AGREEMENT (FTA):
A free trade agreement is a condition or an agreement between two countries trying to
reduce great barriers. It's simply a trade-off between two countries. Its major characteristic is
to provide relaxation in export and import with fewer tariffs and restrictions on trade.
> All members or countries under FTA remove tariffs from each other's products.
Pakistan
Pakistan has free trade agreements with several countries, including China, Sri Lanka,
Malaysia, Mauritius, Indonesia, Iran, Turkey, Switzerland, and the Commonwealth of
Independent States (CIS).
Australia, Azerbaijan, Mauritius, Bahrain, Bangladesh, Morocco, Belarus, Netherlands,
Belgo-Luxembourg Economic Union, Oman, Philippines, Bosnia, Portugal, Bulgaria, Qatar,
Cambodia, Romania, China, Singapore, Czech Republic, South Korea, Denmark, Spain,
Egypt, Sri Lanka, France, Sweden, Germany, Switzerland, Indonesia, Syria, Iran, Tajikistan,
Italy, Tunisia, Japan, Turkey, Kazakhstan, Turkmenistan, Kuwait, UAE, Kyrgyz Republic,
United Kingdom, Lebanon, Uzbekistan, Laos, and Yemen are in the bilateral investment
agreement.
The commodities Pakistan trades freely with these countries vary depending on the specific
agreement but typically include textiles, agricultural products, chemicals, and machinery.
PREFERENTIAL TRADE AGREEMENT (PRA):
The WTO is the name for trade preferences that a member may independently offer to a
competitor for trade, such as lower or zero tariffs.
Pakistan has preferential trade agreements with various countries in different commodities;
some of the key ones are:
1. China: Pakistan-China Free Trade Agreement (FTA) covers trade in over 3000
products, including textiles, leather, chemicals, electronics, and machinery.
2. Indonesia: Pakistan-Indonesia Preferential Trade Agreement (PTA) covers trade in
various products, including palm oil, rubber, furniture, and textiles.
3. Iran: Pakistan-Iran Preferential Trade Agreement (PTA) covers trade in various
products, including fruits, vegetables, meat, and textiles.
4. Sri Lanka: Pakistan-Sri Lanka Free Trade Agreement (FTA) promotes trade in
various products, including tea, rice, textiles, leather, and pharmaceuticals.
5. Malaysia: Pakistan-Malaysia Free Trade Agreement (FTA) covers trade in over 8000
products, including palm oil, rubber, electronics, machinery, and textiles.
6. Turkey: Pakistan-Turkey Free Trade Agreement (FTA) covers trade in over 6000
products, including textiles, leather, chemicals, and machinery.
PREFERENTIAL TRADE AGREEMENT (PRA):
Pakistan has preferential trade agreements with various countries in different commodities;
some of the key ones are:
1. Indonesia: Pakistan-Indonesia Preferential Trade Agreement (PTA) covers trade in
various products, including palm oil, rubber, furniture, and textiles.
2. Iran: Pakistan-Iran Preferential Trade Agreement (PTA) covers trade in various products,
including fruits, vegetables, meat, and textiles.
3. Afghanistan: Pakistan-Afghanistan Preferential Trade Agreement (PTA) allows duty-free
access to a range of products from both countries, including fresh fruits, vegetables,
livestock, and textiles.