Pakistan, a semi-industrialized economy based on agro, is one of the largest producers of natural products, and its labor market is the 10th largest in the world. Agriculture in Pakistan plays a central role in the economy, contributing nearly 23.0% of GDP and employing more than 42.3% of the country`s workforce. Since 2010, Pakistan`s imports have followed an upward trend, while exports have followed an almost stable trajectory, leading to an increase in the trade deficit, reaching a record high of $36.5 billion in 2018. Canada and Pakistan established diplomatic relations in 1947, shortly after Pakistan`s independence. Canada is represented in Pakistan by a High Commission in Islamabad, a Consulate and Trade Office in Karachi, and a Consulate in Lahore. Pakistan is represented in Canada by a High Commission in Ottawa and Consulates General in Montreal, Toronto and Vancouver. This report includes a section on the Canadian agricultural industry with a particular focus on the likely impact on Pakistan`s agricultural markets in light of a free trade agreement. Canada is the world`s 5th largest exporter of agriculture and food products. Analysis of Canada`s major trade agreements shows that agriculture plays a crucial role in all Canadian trade negotiations. If a trade agreement between Pakistan and Canada were signed, agriculture would be at the forefront of a possible dispute between the two countries.
However, several benefits could be achieved if policymakers adopted a balanced negotiating approach, in which certain products such as rapeseed, soybeans, chickpeas and other cereals, of which Pakistan imports significant quantities, could have access to the agricultural market. In return, Canada could provide access to rice, fruits and vegetables, sugar and confectionery. The official said the fund aims to help developing countries and their small and medium-sized enterprises take advantage of new export opportunities created by free and preferential trade agreements with Canada. The program focuses on initiatives that will help ensure that free and preferential access to trade in Canada ultimately contributes to employment growth and poverty reduction in developing countries, as well as initiatives that also address gender inequality or environmental concerns. The Pakistan Business Council advises against signing a free trade agreement (FTA) with Canada. With a small share of Canada`s textile imports today, Pakistan will lose more than gains from improved access to Canadian textile markets, particularly in the agricultural sector. In the first phase, the PBC recommends a Limited Preferential Trade Agreement (PTA) that will allow Pakistani manufacturers better access to the Canadian market for textiles, particularly apparel, in exchange for tariff concessions on certain agricultural products such as Canadian oilseed rape and other fruits and vegetables. The High Commission of Canada to Pakistan stated that the priorities of the bilateral international assistance program are based on Pakistan`s development priorities and Canada`s comparative advantage, in line with its feminist international assistance policy. Canada is regularly considered a trading nation because its total trade accounts for more than two-thirds of its GDP (the second highest level in the G7 after Germany). [1] [2] Of this total trade, approximately 75% is with countries that are part of free trade agreements with Canada, particularly with the United States through the North American Free Trade Agreement (NAFTA).
[3] At the end of 2014, Canada`s bilateral trade reached C$1 trillion for the first time. [4] KARACHI: The Canadian government is considering preferential trading partner status for Pakistan, which would boost the country`s current exports from a tiny $700 million a year to a North American country, officials said Monday. Canada pursues a wide range of interests in its bilateral relationship with Pakistan, including people-to-people relations, governance and democracy, human rights, climate change, development assistance, regional security and defence, cross-border crime, trade and investment. In 2017, Pakistan was Canada`s 29th largest merchandise export destination, with bilateral trade reaching $1.04 billion. Canadian exports to Pakistan totalled $693 million and imports from Pakistan totalled $351 million. In July-April 2018, exports to Canada were $102.2 million, up 4.6%, while total imports from Canada during the reporting period were $169.5 million. In 2017, Pakistan was Canada`s 29th largest merchandise export destination, with bilateral trade between Canada and Pakistan reaching $1.04 billion. Of these, Canadian exports to Pakistan totalled $693 million and imports from Pakistan totalled $351 million. There are opportunities for Canadian companies in infrastructure, information and communications technology, mining, energy, oil and gas, agri-food and wood.
Below is a list of the countries and trading blocs with which Canada currently has free trade agreements. [7] TFO Canada is currently implementing Canada`s Market Access and Capacity Building Services program with funding from Global Affairs Canada. Recommendation: The Pakistan Business Council advises against signing a free trade agreement (FTA) with Canada. With a flow. Pakistan`s top 20 commodities with the highest export potential to Canada are estimated at $2.9 billion. Twelve of them belong to the category of textiles and textile products, most of which fall into the subcategory of clothing (HS-61 and HS-62). Rice is one of the raw materials currently imported by Canada in small quantities, but it has immense potential, a value that could exceed $289.2 million. In addition, Pakistan is one of Canada`s main suppliers, particularly in the import of textiles and textile articles. The countries competing with Pakistan for a larger share of the Canadian market for these items are the United States and Bangladesh, both of which have trade agreements that give them tariff advantages. This study also analyzes Canada`s export potential to Pakistan, which was calculated for 2018 and exceeds $6.1 billion. .