ISLAMABAD, March 27: Pakistan and India on Monday agreed to identify and remove non-tariff barriers (NTBs), which restrict the smooth flow of trade between the two countries.

This was decided in a meeting of the joint study group (JSG) held here on Monday. The commerce secretaries of the two countries led their sides at the meeting.

The two sides also agreed to constitute two sub-working groups to identify and phase out the NTBs, like certification and cumbersome procedures in the trading regime of the two countries.

It is expected that the groups will work out the NTBs in three to four months, which would then be considered in the next JSG meeting to be held in India.

After the meeting, Indian Commerce Secretary S.N. Menon told reporters that India was emphasising on trade facilitation measures at bilateral, regional and multilateral forums.

“Initiatives like computerisation and electronic data interchange have been taken up and are likely to be completed during this year,” he said.

He said that phasing out of the NTBs had also been considered under the South Asia Free Trade Area (Safta) for hurdle-free trade in the region.

Mr Menon said that average tariffs in India had been reduced to 12 per cent during the current fiscal year. Tariff on 98 per cent products would be reduced to 10 per cent in the next fiscal year, he added.

Pakistan’s Secretary Commerce Asif Shah said that recommendations of sub-groups would be sent to the Indian government in the next six to 10 weeks for implementation.

He said that non-tariff barriers were impeding Pakistan’s exports to India despite the MFN status.

A joint statement issued after the meeting announced the establishment of a working group on standards and conformance and a working group on sanitary and phyto-sanitary issues.

The working groups had held in-depth discussions and worked out a roadmap to finalise the mutual recognition agreement to facilitate trade.

The sub-groups on customs cooperation and trade facilitation measures agreed on four main areas: to explore the possibility of a bilateral arrangement on customs cooperation, to exchange information on the certificates of origin, import and export declarations; customs laws and procedures, valuation; trade statistics; to encourage exchange of information electronically between the customs of the two countries and to identify areas for mutual technical assistance and capacity-building.

It was agreed that the sub-group would try to complete these exercises before the next JSG meeting.