Need to enhance trade with South America stressed

Pakistan needs to enhance trade with South America, being the fifth most populous continent whose ethnicity is by and large influenced by Europe and the US. Talking to Business Recorder, Member Export Islamabad Chamber of Commerce and Industry (ICCI) Ahmad Jawad said, "currently our level of exports with South America is 1.6 percent and within this share of 1.6 percent, the key players are Brazil and Argentina.
This potential could be enhanced positively by fetching other doable options like energy sector, pharmaceuticals, agricultural commodities, textiles, marble, paper and food and vegetable sectors, under the trading umbrella of Pakistan and South America."
Major countries of this landmass are Argentina, Bolivia, Brazil, Chile, Peru and Venezuela. The volume of trade between Pakistan and Mercosur is currently hovering around 250 million dollars per annum. Pakistan is co-member with South American countries in one trade agreement, other than World Trade Organisation, that is Global System of Trade Preferences (GSTP), which came into being in 1989 but its functionality is not up to the mark.
Major exports of Pakistan to Argentina include artificial silk, cotton cloth, synthetic textile, footballs and surgical and medical goods. In addition, the likely options between the two could be pharmaceuticals and imports of compressed natural gas (CNG) kits as Argentina is a leading country in the use of CNG and Pakistan is already importing CNG equipment, mostly gas cylinders, from Argentina.
Jawad said, "Our exports to Argentina suffered a significant decline in the wake of the economic crisis in Argentina, but the year 2009-10 has seen an unprecedented surge in Argentina's exports to Pakistan, due mainly to massive import of wheat and corn by us. According to provisional statistics, volume of trade has exceeded 240 million dollars in FY 2010-11; while our exports have increased to about 52 million dollars, for the first time ever, which highlights the significance of the region as an emerging market for textile and other goods."
As Brazil was the first commercial partner of Pakistan from this region, and bilateral trade was about 400 million dollars in 2002-03, which has now declined to 170 million dollars which is very low indeed. Currently, Brazil has also executed Zero Hunger Programme to address poverty at large-scale. In an effort to bring a positive change in the live of poor Pakistanis, Brazil has offered technical support in the social sector development, which invites Pakistani private sector to come forward and avail multiple opportunities of mutual trade between Brazil and Pakistan. Brazil is the second largest country of Halal meat exporter in the world and Pakistan could enhance its relations in this sector significantly.
He further said that the most suitable option among our exporting commodities to Brazil could be the field of agriculture. As Brazil's agriculture contributes only 3.5 percent to gross domestic product for which it depends upon other Mercosur member countries. Pakistan has good opportunity to initiate export of agricultural commodities which Brazil needs.
Similarly, Venezuela being the fifth petroleum producer is another appropriate choice in extending trade relations. The volume of trade between the two countries stood at about 13 million dollars, which was quite below the potential. Both the countries should work closely to explore new areas in order to give a big boost to bilateral trade.
Government of Pakistan has already signed bilateral agreements, but there is a dire need to re-activate those agreements and revitalise the activities of economic forum between Pakistan and Venezuela. Co-operation could be enhanced in petroleum, energy, tourism, surgical, sports goods, and textile and agro- sectors also. Chile is one of the most stable and prosperous countries of South America. There is an enormous capacity for enhancement of bilateral trade relations and attracting Chilean investment in Pakistan's copper mine industry. The present annual volume of trade stands at 68 million dollars with Pakistan and the target is set up to 300 million dollars in three years, Jawad remarked.
"Pakistan constitutes high potential sectors whose contributions could benefit the existing level of international trade with South America. Besides the traditional sectors, Pakistan could also improve the existing level of trade with South American countries by investing in their deficient sectors and so that we earn better place among their trading partners," he suggested.