Parliamentarians from India and Pakistan urged governments of the two countries on Wednesday to further phase-out the negative list by end 2012 for facilitating bilateral trades between them.
They demanded this from Pakistan and India in a joint declaration released after meetings between the visiting Indian Parliamentarians and their Pakistani counterparts.
In their joint press conference held here in a local hotel and then also in the joint declaration, they stressed that the current initiatives to complete the transition from the current positive-list approach to a small negative list should be finalised and ratified by February 2012. “And in the second stage, to further phase-out the negative list by end 2012,” they emphasised.
They noted that non-tariff barriers constituted deterrence in the realisation of the trade potential of both sides. They said that based on the work of the Joint Working Group as well as the positive suggestions emanating from “Nuts and bolts trade facilitation discussion” organised by FICCI in December 2011 that had identified some tangible issues, needed further action on a priority-basis even while recognising the non-discriminatory nature of these measures.
The parliamentarians also demanded completion of the process of seeking preferential trade agreements within the framework of SAFTA on a priority basis.
The two Governments should undertake appropriate measures for minimising sector-specific barriers as well as foster a dialogue between the regulatory bodies of both sides, they further said.
“The Joint Technical Group for improving physical infrastructure for trade should also complete their exercise by end February 2012,” they added. “It was also necessary to create an appropriate grievance-rederessal mechanism to facilitate clearance of trade consignments at land, sea and airports. Trade-facilitation measures for expeditious clearance of goods, harmonization of custom procedures need to be undertaken expeditiously.”
The parliamentarians suggested that a customs cooperation agreement needed early conclusion. This should include valuation and mutual recognition of prescribed and approved quality standards. For facilitating this it was felt that a Group under Finance/Revenue Secretaries of both Governments should be constituted.
They said that only bilateral trade would never be sufficient. “While trade constituted an engine of growth encouraging Investments by both countries would deepen economic relations.”
The early conclusion of an Investment Protection Treaty along lines with many other countries would enhance the confidence among the business community to undertake investment and realise the benefits of growing economic opportunities both countries had to offer, they suggested.
They stressed that fostering linkages between private sector organisations harnessing their entrepreneurial initiatives and intra-industry trade including joint ventures would greatly enhance the effectiveness of other initiatives that are currently underway.
Initiatives for enlarging the scope for cooperation and enhancing trade in some key areas like textiles, electronics and information technology constitute an integral part of a sector-specfic action initiated by both sides, they said.
The parliamentarians also stressed need to open bank branches in both the countries. “Discussions between the central banking authorities must be undertaken quickly for enabling appropriate banking arrangements. Similarly, permitting cross-border listing of stock indices and financial instruments should be encouraged within the regulatory framework/ institutions in both countries,” they said.
The parliamentarians recognised that an enabling and friendly visa regime was necessary for enhancing broader cooperation between the two countries including people-to-people contact.
While Indo-Pakistan bilateral trade during the last 3 years has increased from just over US $ 1.8 billion in 2008-2009, to US 2.6 billion in 2010-2011 the potential was indeed much larger. The commerce ministers had envisaged enhancing bilateral trade from US $ 2.6 billion to US $ 6 billion within 3 years. Expert opinion suggested that their true potential was over US $ 14 billion and indeed sky was the limit given an enabling policy and regulatory framework.
Pakistan-India Parliamentarians Dialogue III started on January 17 and concluded on January 18 here.
Elected parliamentary leaders from Pakistan including Senator Jan Mohammad Khan Jamali, Deputy Chairman Senate of Pakistan, Faisal Karim Kundi, MNA, Deputy Speaker National Assembly of Pakistan, Qamar Zaman Kaira, MNA, convener, Pak-India Parliamentary Friendship Group in the National Assembly and Senator Salim Saifullah Khan, chairman Senate Standing Committee on Foreign Affairs, among others, will lead the third round while seasoned MPs from Pakistan and India, Senator S M. Zafar (Punjab, PML), former Federal Minister for Law, Pakistan and Yashwant Sinha, former Union Minister for External Affairs and Finance, India (Jharkhand, BJP) will be co-chairs of the Pakistan-India Parliamentarians Dialogue III.