Sources in the WTO have revealed that India is using delaying tactics for the time-bound European Union unilateral trade concession to Pakistan. While the government has been beating the drum over its landmark ‘composite dialogue’ in India, sources in the WTO have revealed to Profit that ‘things remain dicey at this stage’ with India now raising concerns over some items included in the trade package. What is most important to realise is that the EU drafted the package very carefully and tried to adopt a win-win approach, which is to say that they tried to ensure that there were little if any consequent commercial disadvantages for EU member states or other trading partners like India. More significantly, if these delaying tactics by India continue, there might be a chance that Pakistan will not be able to secure the EU unilateral trade concessions.
Indian surprise
This would imply that both the countries will be back to square one, after what were touted to be ‘historic meetings’ between the commerce ministers of both the countries. Such Indian intransigence for the Pak-EU trade deal will surely retard progress made in trade diplomacy, sources explained. What is most surprising is that while Pakistan has been taking active steps to cut down the negative list of products, in its attempt for trade liberalisation, and is also making sincere efforts for giving access to Indian investors to exploit business opportunities in Pakistan, India has proven yet again that it is not willing to budge on its stance despite repeated assurances. Intriguingly, the joint statement issued after the ministerial level talks between the commerce minister of Pakistan Makhdoom Amin Fahim, and his Indian counterpart Anand Sharma, made no mention of India removing its objections to the Pak-EU trade deal. Moreover, sources in Geneva have also confirmed that they have not received any formal intimation in this regard. Pakistan’s foreign minister Hina Rabbani Khar speaking to the Pakistan National Assembly had said, “The Indians are also talking in terms of partnership of a strategic nature with Pakistan over a long time, which is indicative of growing confidence between the two countries. Both Pakistan and India have indicated their desire for peace and forward movement on all issues.” It is ironic that this statement is being made in the backdrop of India once again raising item-specific issues over the Pak-EU preferential trade agreement.
European concessions
EU leadership decided to give Pakistan specific tariff concessions in the form of autonomous trade preferences under which 75 Pakistani products would benefit from duty free access to European markets. This decision was taken by the European leadership taking into account the sacrifices Pakistan has made in the war on terror and the devastating floods last year, which had a combined total impact of $43 billion on Pakistan’s economy. “Pakistan should not be afraid to grant MFN status to New Delhi as it would not hurt Pakistan’s trade interests,” prime minister Manmohan Singh said recently in his meeting with Pakistan’s commerce minister Makhdoom Amin Fahim. Interestingly, however, while the government had decided to take steps to granting MFN status to India, the matter was not debated in parliament. Granting MFN status to India has met stiff resistance in Pakistan with Jamat e Islami and PML-N, the second largest political party opposing it on the grounds that it was not discussed with members of the parliament.
Pulling at the strings
In another development, it has been learnt that the Afghan-Pakistan trade agreement was undertaken after immense pressure from Washington. This trade agreement will have severe repercussions for the indigenous industry, which exports goods worth approximately $2 billion to Afghanistan. Sources in the commerce ministry have pointed out that Pakistan does not stand to benefit from this arrangement. It is even more intriguing that Pakistan’s chief negotiator privately agreed to give India and Afghanistan trade access through the Wagah border. According to a wikileaks cable, “Under a multi-year plan to open the Wahgah border, in return for Afghanistan’s full compliance with the re-export study’s recommendations, Pakistan would allow Afghan trucks unimpeded access to the Pakistan side of the Wahga border in the first year. In year two, permit Afghan trucks unimpeded access to the Indian side of the Wahga border. In year three, permit Afghan trucks to return from India with certain Indian goods. In year four, permit Afghan trucks to return from India with an expanded number of Indian goods and in year five, grant Afghanistan full access to India in terms of transport and Indian imports.” This decision has been taken without taking concerned stakeholders on board, and this step would prove disastrous for the indigenous industry in Pakistan. Not only will the country be exposed to the risk of Indian goods being smuggled to Pakistan, but will also be exposed to re-export of Indian goods from Afghanistan to Pakistan.
On whose orders?
The question arises that who gave the respective ministry the right to take these decisions without involving the respective stakeholders and chambers of commerce on board, and why has the decision been made in secrecy? Commerce ministry sources have also confirmed that these decisions were in fact taken under the wraps, and were made without the input of the concerned authorities. The source further said government officials were under immense pressure from Washington to go ahead with the transit trade agreement, which will have disastrous consequences for the economy, and subsequently the country.
You can not blame India or any other country for where Pakistan is today, Pakistan failed as a state due to its leaders and bad policies, time to acknowledge the failure. Pakistan can not stand up till it identifies all its shortcomings and works towards a better future. Blaming other countries for Pakistan’s down fall will not lift it from the pit it lies in today.
Pakistan must not blame others. It has to set high standards for itself and make a sincere effort to achieve those. Pakistan needs effective leadership. The civil society must come forward to fill the gap.
I think the recent episode of quickly returning Indian Army chopper by Pakistan, will have a salutary affect on Indian government and establishment, so that genuine and long lasting peace between the neighbors shall become a realty in in not a long distant future. Got both the countries war again is NOT an option and there is NO other choice except PEACE.
I think the recent episode of quickly returning Indian Army chopper by Pakistan, will have a salutary affect on Indian government and establishment, so that genuine and long lasting peace between the neighbors shall become a realty in not a long distant future. For both the countries war again is NOT an option and there is NO other choice except PEACE.
pakistan must understand good trade relation with india will give them prosperity.
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India must understand that it will benefit in billions of dollars if it gets the transit trade deal, therefore it must not play cheap tactics to stall an aid programme that was meant for Pakistan in the wake of the most devastative floods in history that had an estimated impact of $43 billion on the Pakistani economy. Instead of supporting it, India is concealing a dagger behind a smile and a handshake.
MFN status had been given to Pakistan by India in 1996 as per WTO rules and not by bilateral agreements. But Pakistan has not till now reciprocated the same. Not only that, its authorities want to consult the entire nation not in one go, but one by one unlike just concluded APC. Even a child can understand who is delaying things.Shame on Pakistan.
Dear well wisher, the question is not about the MFN status but a matter of principle. India had in principle agreed to remove all objections to the EU preferential trade agreement for Pakistan, which was given to the country due to the collosal loss of property agriculture and livelihood of millions of people and India objected as it said that it would set a wrong precedent in the WTO system as a whole. However this so called justification by India is debatable because firstly the WTO system and law has the provision for a waiver precisely because it was visualised that there would be times when individual member countries would need to be given waivers to cope with extraordinary circumstances and the 2010 floods in Pakistan were globally acknowledged as such circumstances. Secondly the entire WTO membership with its collective wisdom does not perceive the so called threat to the WTO system that India has been talking about. These underhand dealings and objections following progress made at the ministerial level talks are therefore in bad taste. Granting of MFN status does not have anything to do with liberalising the trade regime. It will have no benefits if the non-tariff barriers are high. Despite the fact that India has given Pakistan the MFN since 1996, trade volumes have been low because of non-tariff barriers and visa issues. If both the countries have to move forward they need to address issues on an equal footing and not in a deceptive manner. Shame on you for such cliched and ignorant thinking.
We have seen the true face of indians time and again…it is not a surprise. This dialogue business is a drama that should end pretty soon. The only way the indians would listen is when Pakistan forces them to listen, and that is where it will lead to. Every neighbor of india has a serious problem with this state and that is no accident. The mentality of the indian politicians/media/military to toy around with its neighbors is no longer working. It has backfired and has only resulted in an isolated indian state in the region with a total Chinese-Pakistani dominance.
Pakistan has to realize if it again wants to stand on its feet it needs help of its neighbors, it can not recover on its own, no country can prosper like this. If you were to look at this from a foreign perspective today Pakistan has become the arm pit of the world, it has failed miserably as a state and is a cause of problems all over the world. It is in interest of Pakistan to have good trade relations with India and that may lead to aid or help coming from India as and when relations Improve, like that Pakistan would not solely rely on foreign aid coming from the west but have its neighbors adi and help it.
Sections in Pakistan are realising that Kashmir can fill a common man's brain, not his pocket or stomach. Demands that granting MFN dilutes the Kashmir issue, blaming India Pakistan's boomeranged diplomacy in Afghanistan, blaming USA for everything, and blaming the rest of the world for being suspicious of Pakistan — all of this should actually compel Pakistan to introspect and set its house in order.
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