April 19, 2007	Thursday	Rabi-us-Sani 01, 1428

ISLAMABAD, April 18: The Indian High Commissioner Satyabrata Pal on Wednesday criticised Islamabad’s stand on South Asia Free Trade Agreement (Safta) for trade through positive list with India, which he termed violation of the treaty.

"I want to point out that excluding India from the provisions of Safta by Pakistan could call into question its credibility among the member states," the Indian envoy said while speaking at the concluding session of two-day seminar on Safta.

Mr Pal presented a keynote address at the seminar on Safta organised by Saarc Chamber of Commerce and Industry (SCCI) held in Bhurbun where he explained the views of the Indian government, particularly the friction between Pakistan and India regarding Safta.

Reacting to the Indian claim, the commerce ministry spokesman said Pakistan did not indulge in breech of Safta because its acceptance of a Saarc treaty was subject to the domestic law. Islamabad is also of the opinion that trade with India under the positive list is a non-tariff barrier and it has nothing to do with a compliance issue.

He said Safta was painstakingly negotiated between the member countries but at no stage in these negotiations did Pakistan indicate that as and when Safta came into force, it would not apply to India.

He also pointed out that there were no trade barriers in India specific to Pakistan. He said that a Joint Study Group under the two commerce ministries has been established which has already made recommendations on steps to be taken by India that would help Pakistan's exports.

“We have acted on these and are prepared to do more,” the Indian envoy said.

He disclosed a task force has been set up in the Indian commerce ministry to recommend steps that would reduce non-tariff barriers subsequently, though these would help all our trading partners, Pakistan would also benefit.

“If the mega project like Iran-Pakistan-India gas pipeline, which too would help integrate the larger region, is politically acceptable in Pakistan, why should normal trade and transit under Safta is not possible?, he asked.

The seminar ended with a set of recommendations gathered from the discussions among the participants, which will be presented to the Saarc secretariat for policy implementation.

It recommended removal of non-tariff barriers that have been hindering trade in Saarc, easing travel and visa restrictions for member countries for increased business activity, and investment. It also called for including the services sector in the Safta, and revision of the sensitive list to reduce the same on a time bound basis.

The seminar also recommended mutual recognition of certification and harmonization of standards for greater trade facilitation in the region.

Dr Tariq Hassan, the former chairman of the Securities and Exchange Commission of Pakistan spoke about competition and coordination in South Asian capital markets. He suggested that emerging capital markets must identify strategies not only to survive but also to compete in the global marketplace and ultimately contribute to the economic development of the country and the region.