February 24, 2006	Friday	Muharram 25, 1427

ISLAMABAD, Feb 23: The Indian government is reluctant to implement the proposals of study groups seeking a complete elimination of non-tariff barriers (NTBs) and para-tariffs, which restricts entry of Pakistani products into India.

The study groups were constituted under the aegis of the newly-established India Pakistan Chamber of Commerce last year, which were supposed to give their recommendations latest by August 2005.

Talking to Dawn, Federation of Pakistan Chambers of Commerce and Industry President Chaudhry Muhammad Saeed said the groups had in its initial reports identified a series of NTBs that restricted the flow of Pakistani products into the Indian market.

“The Indian government is not ready to implement the recommendations of the study groups,” he said.

The groups were given a task to identify the hidden irritants, locate those items trade of which might harm local industries in both the countries and work out measures for facilitating trade between the two countries.

Mr Saeed said that major NTBs identified included visa issues, transportation problems, inter-states duties, licensing and certification problems. He said that due to these and other restrictions, Pakistani goods could hardly reach New Delhi and Punjab. “It is very difficult to transport and introduce Pakistani goods to the southern part of India.”

When asked that the study groups did not give the final report within the stipulated time period, the FPCCI president said that when the initial recommendations were not implemented then how one could expect a full report to come in time. The FPCCI chief linked the progress with the movement in confidence building measures between the two countries.

Mr Saeed said the study groups, consisted of three businessmen each from India and Pakistan, had already recommended their initial measures to their respective governments for discussion in the composite dialogue.

He said that Indian buyers were biased towards importing goods from Pakistan and because of this Pakistan’s export to India was not increasing in the way it should be even after having an MFN status. He went on to say that the Indians were reluctant to export raw materials to Pakistan. Citing an example of blue wed — a raw material used in leather goods — Mr Saeed said that the Indians were not ready to export this raw material to Pakistan. They are interested in exporting value-added goods only, he said.

Mr Saeed said that free trade with India could only be possible when there was a win-win position for both the countries. He said that currently the trade was highly in favour of India.

The FPCCI president said that it was observed that those potential products in which Pakistan was in a better position, India had started attracting large investment in those areas to make Pakistani products less competitive.

He said that India had a large corporate sector and low cost of production and gave huge subsidies. It is concentrating only on those sectors in which Pakistan has some edge over other countries, particularly home textile.

“We are ready to import tyres from India. Will India import our salt etc?” the FPCCI president asked.

Mr Saeed said that although the cabinet had ratified the Safta agreement, bilateral trade with India would continue through 773 items. However, he said that the trade of items under positive list would further increase as the duty on these items would come down to 0-5 per cent under the Safta treaty.