Pakistan Iran Trade

Pakistan-Iran Trade
Discussing the Preferential Trade Agreement
Possibilities for Iran Trade
Bottlenecks in Trade

Group Members:

Falak Khurram

Maham Kamran

Muhammad Ahmad Daha

Shahzeen Arif

Wajeeha Zafar

Zainab Zahid Khawaja

Subject: International Relations

Instructor: Ms. Zenab Ali

Submitted on: 6th February, 2014

Contents

Introduction        

Country Comparison        

Macro-Economic Profile: Country Comparison        

Macro-Economic Profile: Pakistan        

Macro-Economic Profile-Iran        

Sanctions        

Pak-Iran Relations        

Beginning of Trade        

Geneva talks        

Implications for Pakistan        

What is currently being traded?        

Current Situational Analysis        

Currently imposed sanctions        

United Nations Security Council Regulations        

Unilateral Sanctions by USA        

Unilateral Sanctions by EU        

Operational Sanctions by SWIFT (Society of Worldwide Interbank Financial Telecommunication)        

Other bottlenecks        

Letters of credit.        

Possibilities of trade after sanctions and limitations        

Asian Clearing Union        

Pak-Iran currency Swap agreement        

Pakistan-Iran Barter Agreement        

Policy Recommendation        

Pakistan-Iran Barter Trade Exchange Agreement        

Conclusion        

Works Cited        

Appendix        

Key Words        

Bilateral Trade        

Letter of Credit (L/C)        

Terms of trade        

Quotas        

Tariff        

Non-Tariff Barriers        

Sanctions        

Introduction

Pakistan signed a Preferential Trade Agreement with Islamic Republic of Iran on 4th March 2004.The agreement was approved on 25th May 2005 and started action from 1st September 2006. Under the Agreement, Pakistan offered special consideration to Iran on 338 tariff lines, while Iran gave concessions on 309 tariff lines. Since then, Iran and Pakistan have been trading on a very small scale. The rise in the level of trade activities between the two countries faces hindrance from the sanctions imposed on Iran by numerous Western countries, including UK, EU, USA as well as the United Nations. However, as the report shall indicate, there are certain ways in which Pakistan can trade successfully with Iran evenin the presence of sanctions.