Leading industrialists and traders have expressed their concerns over the process envisaged for granting the Most Favoured Nation (MFN) status to India saying the process should be equally beneficial for both nations. The government has officially started dialogue towards normalisation of trade ties in the region by considering granting MFN status to India. It is well recognised that trade between Pakistan and India can be mutually beneficial for both countries. “But there has been plenty of misunderstanding, misinterpretation and misgivings.”
Keeping in mind the past history as to how the government has signed agreements including WTO without taking industry on board, they said adding it is important that the industry plays its due role in advising that a transparent process be undertaken. A leading industrialist said that India has a huge market and economies of scale, and resultantly, holds a significant cost advantage over its neighbours. “In principle, the stance to support enhancement of regional trade is not an issue,” he said. However, the process should be equally beneficial for both nations. “The process must be a win-win,” he said. “
As India seeks market access to Pakistan for its finished products, it must ensure equal access and opportunities for Pakistan to its market,” he suggested. Pakistan’s tariffs are relatively low and its market is largely open, whereas, products are not subject to particular standards conformity. “With experience and malpractices of trade with China, the faith in the government assurances of improved customs procedure, valuation, standards and an enhanced NTC capacity has left much of the domestic industry unconvinced,” he said. There are also significant misgivings about the government negotiation strategy and anti-dumping speedy relief.
