Pakistan is unhappy with India for “not addressing” its concerns on removing non-tariff barriers ahead of a crucial ministerial next week, but New Delhi said the delay was purely procedural.
Indian Commerce Minister Anand Sharma is scheduled to meet his Pakistani counterpart, Makhdoom Amin Fahim, in Islamabad next week where Pakistan is likely to announce a negative import list to speed up the process to normalise trade ties with New Delhi.
“It was decided by the two sides that the agreements for checking non-tariff barriers will be signed in February 2012. In fact, Amin Fahim had written to Sharma in November that the deadline should be respected,” media reports quoted a Pakistani official as saying.
But Indian officials said that seeking cabinet approval for such agreements takes time.
Pakistan is expected to announce the first step towards granting most favoured nation status to India next week by adopting a “short” negative list of items it will not import from India. At present, Pakistan allows only about 2,000 items, included in a positive list, from India as against 9,000 from other countries.
The two countries are also expected to ratify a new visa agreement that would facilitate movement of businessmen by cutting down processing time and allowing multiple visits to more than one city.
A Pakistani official said the delay will generate negativity. “Pakistan’s switch over to a negative list was connected to removal of non-tariff barriers. While the negative list decision may not be dictated by a delay in the agreements on NTBs, it (the delay) will certainly generate negative vibes,” the official said.
India had agreed to sign three pacts — customs cooperation, mutual recognition agreements on quality certification and grievance redressal mechanism — to convince its neighbour that it was serious about removing NTBs. But only the customs cooperation pact is ready. New Delhi had some problems with the Pakistani draft on grievance redressal and has prepared a counter-draft.
“Until both sides agree, the draft cannot be finalised and placed before the cabinet,” the Indian official said.
On the mutual recognition agreements document, the official said, the draft was ready but the cabinet note is to be floated by the consumer affairs ministry, which has promised to do so soon. This agreement would make quality certification given by one country acceptable in the other.
“These things do take time. When Pakistan can take 17 years in agreeing to grant MFN status to India, it has to be understood that other dispensations can take at least a few months,” the Indian official said.
Pakistan says a big reason for its trade gap with India is the NTBs. India exported goods worth $2.33 billion to Pakistan last year while its imports from the country were a mere $332 million.
