As Islamabad recognises that the grant of Most Favoured Nation (MFN) status to New Delhi will help expand bilateral trade relations, Pakistan and India on Thursday agreed to form an institutional framework at commerce ministries’-level to define the road map for promotion of bilateral trade and removal of non-trade barriers.
Addressing a press conference after the conclusion of the two-day talks, Commerce Secretary Zafar Mehmood said unlike the previous four rounds of talks, a comprehensive and productive discussion was held and both sides expressed the intent to explore mutually-agreed “preferential trade arrangement” to further promote bilateral trade by extending “tariff concessions” on the products of export interests to both countries.
Four new areas of bilateral trade were identified including electricity, petroleum products, IT and BT cotton seeds, he said, adding that the chambers of commerce and industry should form officially-recognised joint chambers at apex and regional levels. Both sides also agreed to fast track opening up of bank branches and agreed on desirability of promoting bilateral investments and removing any impediments for such investments.
Denying impression that Pakistan had changed it stance as it had earlier linked promotion of bilateral trade until the resolution of all the political issues with India, he said the condition was specific to Afghanistan-Pakistan Transit Trade Agreement. “If we can trade without restrictions with the export power house of the world, China, then we have nothing to fear while trading with India, as any injury could be addressed under the WTO safeguard measures.”
For promoting bilateral trade, both tariff and non tariff barriers needed to be reduced and removed, he said, informing India that it would take immediate necessary steps to ensure that non-discriminatory trade regime would be operational at the earliest. And in this regard the consultative process has already started and information from all stakeholders was being collected to replace the present 1946 items containing positive list with a negative list.
Asked why Indian Commerce Secretary Rahul Khullar was not present at the press conference, Mehmood, flanked by Pakistan High Commissioner to New Delhi Shahid Malik and Foreign Office spokeswoman Tehmina Janjua, said the Indian team would brief their media in India. “There was no joint news conference even after the interior secretaries meeting in Mohali earlier this month, only a joint statement was issued.”
The joint statement said both sides agreed to set up a joint working group (JWG) on economic and commercial cooperation and trade promotion for implementation of decisions and resolution of trade disputes. Both commerce secretaries would meet biannually to oversee the functioning of the JWG. Both the governments were urged to support the business communities for promotion of bilateral trade so that misunderstandings and misapprehensions were addressed.
Necessary outreach activities would be undertaken to bridge information gaps relating to trade environment and economic opportunities. AFP quoted Khullar as saying, “This is a process that was interrupted and that must resume and go on. It must acquire significantly fast momentum if only to catch up for the time that we have lost.”
