Come to think of it, Islamabad has been a little too eager about the whole MFN and negative list issue. And even if the initial euphoria of the breakthrough, however soured by the subsequent barter association with EU trade concessions (later denied), caused concerned quarters to overlook crucial fine tuning, there have been far too many causes for concern since the Dec 31 phasing out of the negative list was decided and declared. What is worse, it is now clear that pundits of the country’s most significant sustenance and export industry – agriculture – were not taken on board.
Now rice growers are up in arms, fearing outright wipe out absent fairer treatment. Interestingly, their point of concern is surprisingly easy to understand. Which of the two is more elastic? A government stressing trade liberalistion and (obvious) subsequent advantages? Or pillar sectors, warning of breakdown in case of too much too quick? Simply put, so long as the Indians protect their farmers far more seriously than we do, and have more secure energy, and more affordable inputs, a liberalisation timeline of nine odd months is simply insufficient for the sector to re-posture.
While the commerce ministry’s (read minister’s) initiative is appreciated, it is strange that other organs of the state are not questioning imminent surrender of substantial comparative advantage. True, trade is good, but not when erstwhile production advantage is compromised. And if it’s deliberate, well, it’s outright ridiculous. There is still time for a rethink. Not about the MFN or the negative list. Just about its phasing out, and preserving the original intent of the exercise – trade benefit for all.
