Pakistan, which has decided to make a negative list of trade, is preparing the list through consultation with all stockholders and trade bodies. While a mixed reactions/suggestions have been received so far from various trade associations and organizations, but majority of them, sources claimed, were in favour of the normal trade with India as they did not want to include their concerned products in the negative list. It is worth mentioning here that Pakistan presently has a positive list and only those items included in the list are imported from India, while the rest of the items are considered negative with restrictions/bans over the imports. However during the 5th Round of the Secretary Commerce Level Talks, between the two countries held on April 27-28 this year, it was agreed that Pakistan had agreed to move from the positive list to the negative list of items for imports from India. It was also agreed that after the due consultation with the private sector, that the process will be completed by October 2011. Through a letter of Ministry of Commerce sent to all the Chambers of Commerce and Industry/Sectoral Trade Associations, requesting their recommendations for the items to be included in the negative list, the ministry has demanded suggestions, in-house detailed analysis of the impacts of the fresh move on domestic industry/production/employment, interest of the industry/ exporters/importers and consumers and other factors. The organisation was asked to give suggestions about whether the concerned items should be included in the list or excluded, making it free for imports. In its response to the ministry, Pakistan Fruit and Vegetable Exporters, Importers and Merchant Association (PFVA) has suggested that all fruits and vegetables should be excluded from the list as there was no threat to the local industry or production after making imports of the same type free from the neighbouring country. Talking to Profit Waheed Ahmed, Co-Chairman PFVA said that the mango season in both countries is different as the season of highly valued fruit in Pakistan starts from May 25 and ends around October 15, while the four months mango season remains from March to June having an equal opportunity of import and export on both sides. Besides, interestingly, the people who like the juicy fruit in both countries may also have the taste for almost eight months of a year, he added. According to Waheed, Pakistani Kinnow which is renowned in many parts of the world has no parallel in India as well, as the fruit produced by Islamabad is comparatively high quality, larger in quantity having no stiff competition with the neighbouring country. The export of the item could be further enhanced if it was allowed for normal trade. The change of season in the two South Asian neighbours could also benefit exporters/growers of other fruits and vegetables on both sides he said. PFVA, in its reply to the ministry, has suggested allowing fruit and vegetables for normal trade. On the other hand, showing its reservation over granting Most Favored Nation (MFN) status to India, Pakistan Pharmaceutical Manufacturers Association (PPMA) has demanded the government to put the sector in the negative list as the normal trade will significantly impact the local Pharma Industry. There is a fear of huge losses and reduction of jobs in Pakistan under the liberalised trade as Indian pharmaceutical market was more than10 times bigger in size, having a big share in the global market. The small industry of the country can not compete with the giant industry of India. According to Taufiq Ahmed Khan, Vice Chairman Rice Exporters Association of Pakistan (REAP) since ‘rice’ is a very sensitive item as far as the trade with India is concerned, the association is thoroughly examining the impacts of liberalised trade with the neighbouring country on the country’s rice exports.
“We have talked to the ministry that the association needs in-house meetings and consultation to think on the issue that whether the product should be included in the negative list or kept excluded. Whatever option we find the most appropriate, will be shared with the ministry shortly,” he said adding that as the price difference of the item affect the market on both sides, the association needed to evaluate the impact of the fresh move on both Basmati and non-Basmati rice. Sources in Pakistan Sugar Mills Association (PSMA) have said that, since the sugar is already zero rated in the country, the association would not recommend enlisting the item in the negative products. The import of sugar from India is not likely to harm the country’s domestic products. However sources in the ministry of Commerce told Profit that, even though the majority of the recommendations received so far are in favour of trade liberalisation as they suggest to keep the concerned items out of the proposed list, there was also a suggestion received from some trade bodies who asked to put all of the agricultural products into the list.
