Traders eye citrus exports to France at zero percent duty

KARACHI: Pakistan can export citrus to France at zero percent import duty under the generalised scheme of preferences (GSP) plus status granted by the European Union (EU), a senior official said. 

Head of Economic Affairs Eric Noitakis of the embassy of France said the fruits are in good taste and they can be exported to the European country at zero percent duty. 

A statement, issued on Saturday, said Noitakis was talking to Ahmad Jawad, former chairman standing committee of the Federation of Pakistan Chambers of Commerce and Industry.

Jawad said fruit exporters are keen to tap France after tax waivers granted under the GSP plus. “Private sector intends to strengthen Pakistan-France economic ties by facilitating business-to-business contacts and promoting exchange visits,” he added.

The second largest European economy has a significant fruits’ consumption volume. However, Pakistan ranks 65 in the list of its trading partners. Their annual bilateral trade amounted to approximately one billion dollars.

“This needs to be further increased,” Jawad said.

He said Pakistani mangoes successfully entered the EU markets after compliance with the quarantine requirements of the European Commission’s Directorate General for Health and Consumer Protection. “Now, we are looking forward to kinnow,” he added.

“France has an expertise in agriculture and I think at this time we need transfer of technology to enhance productivity as well as in the value addition sector.”

Jawad said Pakistan’s government will also conduct road shows in Paris in May. “I hope that the event may help in building confidence and encouraging interactions between businessmen of Pakistan and France,” he added.

The country exports kinnow to Russia, UAE, Philippine, Indonesia, Bangladesh, Sri Lanka, Hong Kong, Singapore, Canada and a few other countries. 

Traders slashed their current season kinnow export forecast by 43 percent after climate change destroying crops and decimating yields in the Punjab province.  The Pakistan Fruits and Vegetable Exporters, Importers and Merchant Association (PFVA) forecast total harvest of 1.65 million tons this year.

The bad crop will lop nearly $80 million for the value of exports, with the forecaster pegging the value for the year at $120 million. They expect to export around 200,000 tons of kinnow for the season started on December 1, compared with 350,000 exported last year.

Industry officials said the export target, this season, is at the lower side after crops in Punjab were damaged.

They forecast export value would also fall at least 40 during the season.

Traders have decided to export less but quality citrus to avoid any ban from importing countries.  From the start of the season, exports were slow and the country may not continue export of the fruit beyond mid of February this season, they added.

Dispatch of quality kinnow fetched around $6.5/10kg as compared to $6/10kg last year.

Last month, Waheed Ahmed, an official of Pakistan Fruits and Vegetable Exporters, Importers and Merchant Association said the country can extend its kinnow export season from December to March through induction of other varieties of citrus fruits.