ISLAMABAD: Pakistan is set to join MERCOSUR, a prominent South American trade bloc, after receiving cabinet approval for an ex-post facto agreement that could eventually lead to a Free Trade Agreement (FTA).
The prime minister has expressed serious concerns over the delays in ratifying the agreement, stressing the urgency of diversifying markets to increase exports.
The Ministry of Commerce submitted a framework agreement on trade between MERCOSUR and Pakistan for cabinet approval.
The Cabinet was briefed that both the Government of Pakistan and MERCOSUR had agreed to strengthen economic and trade relations through a Preferential Trade Agreement (PTA), which is expected to pave the way for an FTA. MERCOSUR, a trade bloc comprising Brazil, Argentina, Paraguay, and Uruguay, is the fourth-largest integrative market globally.
This bloc has been identified as a promising opportunity for market diversification, particularly for Pakistan’s export sector, which has historically relied on a narrow range of markets. –Agencies
