ISLAMABAD, April 7: The United States is likely to further delay the Bilateral Investment Treaty (BIT) with Pakistan rather than softening its stance on certain clauses, as the two sides have failed to strike a deal on controversial clauses of the agreement, Dawn has learnt.

The two sides held several rounds since the year 2004 for reaching conclusion to ink the agreement, which was termed as a first step for the initiation of talks on a free trade agreement (FTA) between the two countries.

Well-placed sources told Dawn that the two sides seemed no where closer on the five clauses of the agreement - scope and coverage, transparency, claims on behalf of an enterprise, investment agreements and arbitration rules.

“Until we reach at some closer point, it is unlikely to move forward on singing the agreement,” the sources said, adding “the US is also now seemed less interested in fast tracking the agreement with Pakistan”.

The sources said that Islamabad lost its hope on early finalisation of the agreement as the USTR officials has yet to announce a date for further negotiation to be held in Washington on the remaining clauses.

The US President Trade Policy Agenda 2007 and 2006 annual report, released recently also mentioned that the USTR continued bilateral efforts to finalise BIT, which would provide US investors in Pakistan with significant legal protections. A small but significant number of differences have persisted on issues of considerable importance to the US.

“Discussions on the BIT are expected to continue in 2007,” the report added.

According to the sources, the draft agreement on the data protection is being under consideration of the cabinet, which will have a far reaching impact on the forwarding of negotiation on BIT.

According to the US report, Pakistan continued to take noticeable steps during 2006 to improve copyright enforcement, especially with respect to optical disc piracy. Nevertheless, Pakistan did not provide adequate protection of all intellectual property. Book piracy, weak trademark enforcement, lack of data protection for proprietary pharmaceutical and agricultural chemical test data, and problems with Pakistan’s pharmaceutical patent protection remain serious barriers to trade and investment, the report added.

When asked a senior government official about the possible impact of President George W. Bush special powers under fast-track trade promotion authority to be expired in three months, he said it would have a minimal impact on the finalization of the BIT agreement.

“It will be very difficult to predict exact date for the conclusion of the agreement. We will continue to work with US colleagues in future and try to conclude it in distinct future,” the official added.