WT/COMTD/RTA12/M/1  
 
27 July 2021  
(21-5845) Page: 1/2 
Committee on Trade and Development  
Fourteenth Dedicated Session on Regional Trade  
Agreements    
 
PREFERENTIAL TRADE AGREEMENT BETWEEN INDONESIA AND PAKISTAN  (GOODS)  
NOTE ON THE MEETING OF 2 8 JUNE 2021 
Chairman: H.E. Dr . Muhammad Mujtaba Piracha (Pakistan)  
1.  The 1 4th Dedicated Session on Regional Trade Agreements (RTAs) of the Committee on Trade  and 
Development (CTD) was convened in document WTO/AIR/COMTD/RTA/9/Rev.1 of 18 June 2021.  
Under item  D (III) of the agenda, the Committee considered the Preferential Trade Agr eement (PTA) 
between Indonesia and Pakistan  (Goods) (WT/COMTD/RTA12/N/1, WT/COMTD/RTA12/1, 
WT/COMTD/RTA12/1/C orr.1, WT/COMTD/RTA12/2 ). The present document contains the minutes 
relating to the consideration of this agreement.1  
2.  The Chairman  said that t he PTA between Indonesia and Pakistan was notified under 
paragraph  4(a) of the Enabling Clause on 12 November 2019 in document WT/COMTD/R TA12/N/1. 
The factual presentation on this agreement – document WT/COMTD/RTA12/1 dated 28 January 2021 
– had been prepared by the Secretariat on its own responsibility, and in full consultation with the 
parties. Written questions from Brazil, as well as th e replies from the parties, were circulated in 
document WT/COMTD/RTA12/2. At the request of the delegation of Pakistan, a corrigendum to the 
factual presentation was subsequently circulated – on 4 June 2021 in document 
WT/COMTD/RTA12/1/Corr.1 – in order to  modify paragraph 3.1 on page 7 of the document. 
Following the correction, paragraph 3.1 read: "Both countries do not apply any para -tariffs on all 
products that are committed in the PTA". The corrigendum also correct ed some typing errors in the 
original d ocument that were found during the translation process.  
3.  The representative of Pakistan  thank ed the Secretariat for having prepared the factual 
presentation, and the delegation of Indonesia for the support and coordination . He also thanked the 
delegation of Brazil for the questions , which had  been responded to in writing. He went on to say 
that Pakistan and Indonesia  had signed on 24 November 2005 a framework agreement for a 
comprehensive economic partnership , to benefit fr om the trade potential between the 
two South  Asian countries. This ha d led to the signing of the PTA on 3 February 2012 , which entered 
into effect in September 2013. The PTA aimed at strengthening the economic and trade relationships 
between the two countr ies, to bring about economic and social benefits , and improve the living 
standards of their people. It also aimed to boost  the confidence of the parties to further negotiate a 
free trade agreement.  The PTA contain ed ten provisions , and offer ed different ma rket concessions. 
Pakistan offered Indonesia full concession on 74 tariff lines, out of which 49 were not part of its 
most-favoured -nation ( MFN) duty-free concessions, including palm oil . Indonesia offered full 
concession on 98 tariff lines additional to i ts MFN duty free concessions, including oranges and 
certain pharmaceutical products. Pakistan offered some level of concession on a total of 
214 tariff lines to Indonesia. The relative margin of preference overall for these tariff lines was 
25% of the MFN rate. Indonesia had reduced duties on 129 tariff lines. The margin of preference in 
most of the cases was 50% of the MFN rate. Major items that stood to benefit from the PTA were 
kinnow exports from Pakistan  – which were granted full concession by Indonesi a – and palm oil 
imports from Indonesia, which were granted a 15% margin of preference over the standard tariff 
rate by Pakistan. Major Pakistani exports to Indonesia include d cotton, rice and corn . Major imports 
from Indonesia include d palm oil, staple fibres and edible nuts. Pakistan 's exports to Indonesia grew 
from USD 47 million in 2003 to USD 144 million in 2013, whereas its imports from Indonesia rose 
 
1 The general minutes of the CTD's 1 4th Dedicated Session on RTAs are contained in document 
WT/COMTD/RTA/M/1 4. WT/COMTD/RTA12/M/1  
 
- 2 - 
 
  from USD 266 million in 2003 to USD 1.2 billion in 2013. After three years of imp lementation, both 
parties conducted a review of the agreement , which was amended by a protocol on 27 January 2018. 
Since the signature of the PTA , bilateral trade between the parties ha d increased from US D 1.3 billion 
in 2013 to US D 2.5 billion in 2020, wh ich indicate d a growth of 88% in the overall trade volumes 
between both countries. As envisaged in the framework for a comprehensive economic partnership 
agreement, negotiat ions had started on a free trade agreement to further strengthen the climate of 
economic and regional cooperation between the two countries.  
4.  The representative of Indonesia  expressed appreciation to the Secretariat for having prepared  
the factual presentation, and to the delegation of Pakistan for the good cooperation in th e process. 
He also thanked the delegation of Brazil for the interest shown in the agreement. He said that the 
Indonesia -Pakistan PTA, which was signed in 2012 and implemented the following year,  had 
benefited both parties in ter ms of the increase in total trade , as a result of a more competitive 
playing field for each country 's main export products. Under the agreement , Indonesia enjoyed 
better market access for palm oil, copra and natural rubber ; while Pakistan enjoyed preferential 
tariffs for kinno w, textile products and frozen fish.  Apart from being Indonesia's first bilateral trade 
agreement, the Indonesia -Pakistan PTA was also Indonesia 's maiden bilateral trade agreement that 
had completed a review and amendment , so as  to ensure mutually benefici al outcome s for both 
parties. With the shared interest to pursue a more sustainable bilateral trade, Indonesia ha d agreed 
to offer 19 additional tariff lines for Pakistan 's potential products , which had taken  effect on 
1 March  2019. This gesture was a stro ng testament of Indonesia 's commitment and political will to 
maintain a positive and healthy relationship with Pakistan , which was one of Indonesia's  main trad ing 
partners in the region. Since the PTA and the Amendment Protocol had been implemented, 232 of 
Pakistan 's potential products had benefited from the immediate elimination and reduction of tariffs. 
Likewise, Indonesia h ad enjoyed similar treatment for 311 potential products. The total trade 
between the two countries ha d recorded a steady growth eve r since the agreement was signed, from 
USD 1.6 billion in 2012 to USD 2.6 billion in 2020.  The success of the agreement in elevating bilateral 
trade relations ha d resulted in another milestone. In particular, Indonesia and Pakistan ha d agreed 
to expand the  scope of th e PTA into a Trade in Goods (TIG) Agreement which would  covers all goods 
traded between the two  countries. The parties  firmly believed that the improvement of market access 
provided by this expanded agreement, which was currently being negotiat ed, would  open 
opportunit ies for more potential product s from Pakistan  to enter Indonesia 's market, and for the 
diversification of Indonesia 's export products to Pakistan. In conclusion, he said that it was important 
to underscore the commitment of Indones ia and Pakistan to take forward their bilateral trade 
relation s as embedded in the PTA, which would also provide the impetus for both countries to 
continue the ongoing negotiation s of the TIG Agreement . 
5.  The representative of the United States  thanked Indonesia and Pakistan for participating  in the 
transparency exercise . 
6.  The representative of the European Union  expressed her delegation 's appreciation to the parties 
for the transparency provided . 
7.  The Chairman  said that oral discussion of the PTA between Indonesia and Pakistan  could be 
concluded in accordance with paragraph 11 of the Transparency Mechanism for RTAs (RTA TM). 
Follow -up questions by Members would need to be submitted in writing to the Secretariat within one 
week, by 5 July 2021. The parties would then be given two weeks to submit written replies, by no 
later than 19 July 2021. In accordance with paragraph 13 of the RTA TM, all written submissions as 
well as the minutes of the present meeting would be circulated promptly in all WTO off icial languages, 
and would be made available on the WTO website.  
8.  The Committee took note  of all interventions . 
 
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