The signing yesterday of a free trade agreement between Pakistan and Sri Lanka will lend further substance to the long-standing good neighbourly relations between the two countries. This is the first FTA that Pakistan has signed with any country, and it underscores the existing unanimity of views between Islamabad and Colombo on a host of political, economic, regional and global issues. Besides, during President Chandrika Kumaratunga's three-day official visit to Islamabad, three other major agreements and two memorandums of understanding have been signed to bolster bilateral relations.
These include the agreement on the exemption of visa fee for students studying in either country, providing mutual legal assistance in criminal matters and on extending a $10 million trade credit facility to Sri Lanka. The MoUs signed are in the fields of technical assistance in gemology and jewellry and in facilitating research in agriculture. All this will give the two countries a headstart in strengthening bilateral trade and socio-economic relations when the South Asian Free Trade Agreement comes into force in January next year.
Both Pakistan and Sri Lanka stand to gain considerably from the signing of the FTA. The opening up of each other's markets will mean free trade in agricultural products, textiles, medicines, tea, rubber and several other commodities, which has so far been held back mainly because of a stricter trade regime and higher tariffs on the part of Sri Lanka.
However, for the last ten years or so the balance of bilateral trade has remained in favour of Pakistan. Tea is one of Pakistan's major imports but the bulk of it is being outsourced at a very high price from Kenya. Now with the signing of the FTA, Pakistani importers can consider buying tea at far cheaper rates from Sri Lanka. A lot of effort and years of hard work on both sides have gone into making the bilateral FTA a reality.
Pakistan should seriously work towards reaching similar agreements with other regional countries too. This will enable both public and private sectors to benefit more fully from the opportunities being opened up by the coming into force of the WTO regime earlier this year.
Shifting of US consulate
One hopes that reports of the possible relocation of the US consulate in Karachi to the Boating Basin area are not correct and that the authorities will desist from making a move that would not only prove a nuisance in terms of traffic and security arrangements but could also endanger people's lives. The new venue reportedly under consideration for the consulate is situated close to schools and private homes, and is also a stone's throw from a row of popular eateries.
Already, the management of one of the schools in the vicinity has expressed concern over the reports and is said to be contacting the city high-ups to stall any such step. Perhaps there should be a more coordinated action, involving a greater number of people in the area - shopkeepers, restaurant owners, and residents - who can make their case against the proposed venue of the consulate stronger through a collective position.
Meanwhile, the consulate's present location on Abdullah Haroon Road has been a source of trouble for city commuters most of whom have often to make inconvenient detours to get to their destination because of strict security arrangements. Together with the US consul-general's residence - situated on a parallel road closed to regular traffic - the location of the consulate has also been the reason for the frequent closures of the weekly Frere Hall book bazaar in view of attacks on the American mission.
To prevent similar disruptions in Boating Basin, the US consulate should ideally be located some distance away from well traversed routes, thus keeping public inconvenience to a minimum. There were reports that the establishment of a diplomatic enclave in Karachi was being considered. What has happened to this idea?