REPUBLIKA.CO.ID, JAKARTA - JAKARTA - Preferential Trade Agreement (PTA) becomes operational on Sunday, September 1, 2013. Among others, the agreement clear the way for Indonesian CPO to enter Pakistan at zero percent tariff in exchange with Pakistani kinnow orange to enter Indonesia.
The last hurdle in the actualization of the PTA was affectively removed by the signing of Mutual Recognition Agreement on Plant Quarantine and SPS Measures today in Jakarta by Ambassador Sanaullah and Head of Indonesian Agricultural Quarantine Agency, Banun Harpini, on Friday.
Pakistan removes import duty on Indonesian crude palm oil (CPO) after previously the country imposed 10 percent tariff for Indonesian CPO. While Indonesia cleared Pakistani kinnow from fruit fly disease and removed the orange's import tariff.
Harpini said that Indonesia could gain advantage from the mutual recognition agreement (MRA).
"CPO demand from Pakistan continues to rise from year to year. With this agreement, Indonesian CPO can seize its market in Pakistan and take it over from Malaysia," Harpini said recently.
In a written statement sent to Republika, Ambassador Sanaullah pointed out that for CPO, Pakistan could serve as an entry point to Central Asian Republics and western China. Indonesian would not only be catering a market of 180 million people, but consumers from at least six other countries including Afghanistan, Tajikistan, Uzbekistan, Kyrgyz Republics, Kazakhstan and China.
Indonesia and Pakistan signed the PTA in 2012. But its implementation didn't include the removing tariff barier on Indonesian CPO because Pakistani kinnow was not among allowed products to enter Tanjung Priok port, Indonesia. The Ministry of Agriculture clears the way for the imported kinnow then, after one team sent to Pakistan and made sure that the commodity was free from fruit fly disease.
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