August 04, 2006	Friday	Rajab 8, 1427

ISLAMABAD, Aug 3: Indian High Commissioner to Pakistan Shivshankar Menon said on Thursday his government will not challenge Pakistan in WTO for not granting MFN status but the issue would be taken up in the upcoming Safta Ministerial Council meeting.

"We have not changed our position of not to take up the issue to dispute settlement body of WTO. However, New Delhi has requested the Saarc Council’s of Ministers to review Pakistan’s decision not to offer India trade on the basis of sensitive list, which was restricted to positive list of 773 items," said Mr Menon in response to a question following a speech to the traders at Islamabad Chamber.

The envoy said that the date for the council meeting would be announced shortly.

Mr Menon said the restriction of the scope of Safta to positive list with India would jeopardise its implementation and affect all the contracting states.

He raised serious questions by saying if this was Pakistan’s intention, why did Islamabad negotiate a sensitive list of products, which would be outside Safta tariff concessions with India? He said this was not only a question of commitment to Safta and Saarc but one of Pakistan’s credibility to undertake and implement good faith negotiations.

A businessman told this scribe that how many provisions of the Safta agreement Pakistan would quote, the fact remained that Safta had been negated in its true spirit. This ill-conceived treaty which was not properly negotiated by Pakistani trade wizards would attract bad name to the country at international level, he added.

The Indian envoy also asked for free transit trade to Central Asian Republics, Afghanistan through Pakistan.

He said Pakistan could increase its export to India to the tune of over $1.8 billion if trade with India was no longer made subject to political calculations and extraneous factors. Moreover, if measures like to transport through border, steps to simplify shipping, banking, travel and other links were taken.

Answering a question, he said that he did not mean that trade should be de-linked from the political issues. He said all the issues should be taken up simultaneously and should not be connected with one another.

He also quoted Indian chambers estimation that bilateral trade could grow to $11-12bn following the liberation of trade between the two countries.

He pointed out complementarities existed between the two countries in the sector of agricultural products, tires, minerals, iron and steel, chemicals and pharmaceuticals, automobiles and their spare parts, leather, new and renewable energy technology and cooperation between small and medium enterprises. He said Pakistan was a competitive supplier of cotton goods, particularly men’s apparel, home textiles and fabric.

Speaking on the occasion, Islamabad Chamber President Abdul Rauf said that there are many visible and invisible barriers in spite of MFN status, that make Pakistani products penetration into Indian market difficult, which he said required to be removed.

He said that Indian government has imposed high duty on Pakistani basmati rice. Moreover, Pakistan’s textile sector, especially cotton yarn, bedlinen, terry towel etc., should be given level-playing field.