Indian team coming with MFN, transit demands: Delegation due today for trade talks
By Our Reporter
ISLAMABAD, March 25: Pakistan will discuss with Indian authorities a list of proposals to facilitate trade, including elimination of tariff and non-tariff barriers (NTBs), and enhance commercial and economic relations between the two countries.
Officials told Dawn on Saturday that a 15-member Indian delegation led by Commerce Secretary S.N. Menon will arrive here on Sunday for participation in the plenary session of the second meeting of Pakistan-India joint study group on March 27.
This will be followed by a third round of composite dialogue on economic and commercial cooperation scheduled for March 28-29. Pakistan’s delegation to the meeting will be headed by Commerce Secretary Syed Asif Shah.
The Indian government is seeking most favoured nation (MFN) status from Pakistan and grant of transit facilities to each other’s goods on reciprocal basis, the officials added.
Mr Shah told Dawn that all trade and customs related issues would be discussed in the meeting. Asked whether Pakistan gave MFN status to India under Safta, he said bilateral trade with India would still continue through a positive approach. The ratification of Safta does not mean that Pakistan has automatically granted MFN status to India. “We will respond in case if there is any query from any quarter about the issue,” Mr Shah added.
Pakistan’s exports to India did not register any tangible growth due to these hurdles, despite the granting of MFN status by India to Pakistan.
An official report shows that India reduced customs duties to around 15 per cent last year but the cumulative effect was still in the range of 26 per cent. Some farms items are subject to much higher customs duties like 80-150 per cent on sugar. In addition, certain items are included in the banned list.
Other kinds of duty leviable at import stage on goods included — additional customs duty, special duty, special additional duty and additional surcharge. A 2 per cent education cess had been imposed on all imports in the year 2004.
A senior official said that during the meeting the Indian authorities would be asked to scale down their tariffs on products of interest to Pakistan.
