Economic Relations

Pakistan’s exports to Argentina suffered a significant decline in the wake of the economic crisis in Argentina, dropping to US$ 7 million in 2002-2003. The subsequent years saw a recovery and our bilateral trade in 2006-07 crossed US$100 million mark; our exports had exceeded US$ 42 million and imports US$64 million. The current year has seen an unprecedented surge in Argentina’s exports to Pakistan, due mainly to massive import of wheat and corn by us. According to provisional statistics, volume of trade has exceeded US$ 240 million; while our exports have increased to about US$52, for the first time ever, our imports have shot to US$ 188 million.

PAKISTAN-ARGENTINA BILATERAL TRADE 2002 ~ 08
 (US $ millions)

Pakistan has traditionally exported textile products, surgical instruments, sports goods and leather products to Argentina while soybean oil/ seed has been major exports by Argentina to Pakistan. Besides, Argentina’s exports to Pakistan include compressed natural gas equipment, pharmaceuticals and raw cotton.
Pakistani companies have been participating in Beauty World Trade Exhibition Buenos Aires in September 2006, 2007 and 2008. Embassy has been organizing and attending trade promotion events.
The Embassy organized an "EXPO-PAKISTAN, Buenos Aires 2008" on the eve of the Independence Day of Pakistan from 13 to 15 August 2008, that included a seminar. . We also attended in Expotrade 2006, 2007 and 2008 held in La Rural Exhibition Center, Buenos Aires where some Pakistani products and TDAP promotional material were exhibited.
A nine-member business delegation that had accompanied the former President during his visit in 2004 held exploratory meetings with the Argentine businessmen. A cooperation agreement between the Chambers of Commerce and Industries of the two countries aimed at providing institutional basis for the business communities to interact with each other and explore avenues of cooperation in diverse fields was also signed. Since year 2005, no trade delegation from Pakistan has visited Argentina.

Scientific and Technical Cooperation
The first session of Pakistan- Argentina Joint Committee on Scientific and Technical Cooperation was held in Islamabad from April 19-21, 2007. Prior to the first meeting of the Joint Committee on 19-21 April, 2007, the Argentine delegation visited leading S&T institutes in Islamabad, Karachi, Lahore and Faisalabad from 16-17 April 2007. In the meeting of the Joint Committee, presentations were made by country`s research institutions in the field of electronics, solar energy, biotechnology, health sciences, water resources development and agriculture and livestock. These presentations were focused on identifying potential areas for future cooperation between Pakistan and Argentine scientific institutions. After detailed exchange of views, the two sides adopted agreed minutes of the first session of Pakistan-Argentina Joint Committee on Scientific and Technical Cooperation.
Second meeting of Pakistan – Argentina joint Committee on Science and Technology Cooperation was held in Buenos Aires from 3 to 8 March 2008. The delegation had various meetings with their counterparts and other concerned organizations and attended different presentations. The visit was highly useful.

Relations with Mercosur
MERCOSUR with its enhanced membership and associate membership of ten countries of South America has emerged as an important trading bloc. Its burgeoning economy, political stability and immense potential, offer Pakistani entrepreneurs unprecedented opportunities.
Pakistan – MERCOSUR Framework Agreement on Trade was signed on 21 July 2006 on the fringe of the bi-annual MERCOSUR Summit held in Cordoba, Argentina.
The signing of the Agreement has initiated the process of negotiations between Pakistan and MERCOSUR to conclude a Preferential Trade Agreement, which will ultimately lead to Free trade Agreement. The volume of trade between Pakistan and members and associate members of MERCOSUR which is currently hovering around US$ 250 million per annum is bound to increase. The Preferential Trade Agreement will provide a framework which besides its other advantages will also cover problematic areas like “avoidance of double taxation” and “customs facilities”.

First Joint Committee Meeting (7 September 2005)
Setting up of a Joint Committee to boost economic and trade relationships between the two countries was envisaged under the Agreement on Economic and Trade Cooperation, signed in July 2002.

During the inaugural meeting held in Islamabad in September 2005, both sides expressed their desire to increase bilateral economic and commercial cooperation to a higher level and emphasized more cooperation in particular in sectors of CNG, Oil and transportation, and Pharmaceuticals. The Argentine delegation expressed interest to collaborate in programmes of technical cooperation for the development of agricultural sector in Pakistan, including agricultural implements. To improve export of Argentine meat and horses to Pakistan, both sides agreed to hold negotiations for sanitary certification procedures. The two sides also stressed the importance of concluding a preferential trade agreement between Pakistan and MERCOSUR. Second meeting of the Joint Committee has been proposed in Buenos Aires from 4-6 August 2009. Federal Minister of Commerce from Pakistan is expected to attend the meeting.

Preferential Trade Agreement with MERCOSUR
MERCOSUR with its enhanced membership and associate membership of ten countries of South America has emerged as an important trading bloc. Its burgeoning economy, political stability and immense potential, offer Pakistani entrepreneurs unprecedented opportunities.

Pakistan – MERCOSUR Framework Agreement on Trade was signed on 21 July 2006 on the fringe of the bi-annual MERCOSUR Summit held in Cordoba, Argentina.

The signing of the Agreement has initiated the process of negotiations between Pakistan and MERCOSUR to conclude a Preferential Trade Agreement, which will ultimately lead to Free trade Agreement. The volume of trade between Pakistan and members and associate members of MERCOSUR which is currently hovering around US$ 250 million per annum is bound to increase. The Preferential Trade Agreement will provide a framework which besides its other advantages will also cover problematic areas like “avoidance of double taxation” and “customs facilities”. With the Doha Round process having come to a grinding halt, concluding bilateral trade agreement with regional trade blocs gains added significance.

Visit of Trade Delegation in April 2005
A trade delegation led by Chairman Export Promotion Bureau visited Argentina as part of the tour of the region from 21-24 April 2005. The trade delegation visit assumed a special significance as it followed the visit of the President to the Latin American countries (including Argentina) in November – December 2004 which had set the ball rolling for the development of broader economic and trade ties of Pakistan with the regional countries. Chairman EPB, apart from meeting the top government officials from the Ministry of Foreign Affairs and International Trade and the Ministry of Economy, also held a meeting with the President of Argentine Chamber of Commerce to discuss ways and means to improving bilateral economic and trade relations. Pakistani businessmen availed the opportunity to identify possible partners for building business relationship with the local counterparts.

Minister of Agriculture visited Argentina in December 2006. Two MoU were signed for cooperation in Agriculture. The MoU will facilitate joint research in agro-technology including oilseed and hybrid seed production in Pakistan. It also covers import and export of agri-products. Special measures are being taken for the exporting Basmati Rice and quality Mangoes from Pakistan to Argentina. A group of six buyers and a journalist from Argentina participated in the Expo Pakistan 2007. They included importers of sports goods, surgical instruments and textiles. This was the first time that a group of Argentine businessmen has attended such an event in Pakistan.

Visit of Trade Delegation to Pakistan
Argentinas`s Ministry for Foreign Affairs and International Trade, Mr. Jorge Taiana had to accompany a large trade delegation which visited Pakistan from 29th April to 2nd May 2007. He could not visit due to incompatibility of mutually convenient dates. However, the trade delegation including exporters of sunflower oil and seed, citrus fruit, sports goods, pharmaceutical products, CNG Companies and bovine meat, visited Pakistan.

Investment
M/S Bago Pharmaceutical, a leading Argentine company entered into a joint venture with Feroze Sons to produce cancer medicine in Pakistan. With Argentine investment of US$10 million, the facility is about to start production soon. The formal inauguration has been postponed from December 23 to sometime in February 2009.

Argentina is a leading country in the use of compressed natural gas (CNG) and Pakistan is already importing CNG equipment, mostly gas cylinders, from Argentina. An Argentinean CNG company has entered into a Joint Venture with Wah Industries Ltd, a subsidy of POF to manufacture gas cylinders in Pakistan. Some other CNG companies encouraged by the Embassy of Pakistan are also contemplating investment and joint ventures in Pakistan, including manufacturers of CNG kits

Exporters of Pakístan
Exporters of Cotton
Garments Exporters
Bed Linen Exporters
Synthetic Textile exporters
Towels Exporters