April 28, 2007	Saturday	Rabi-us-Sani 10, 1428

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ISLAMABAD, April 27: The United States will finalise in May this year a draft legislation to allow duty and tax-free access of all its products, including textile and clothing that may originate from Reconstruction Opportunities Zones (ROZs) in Pakistan.

The US has, however, declined Pakistan’s request to share this legislation before moving the bill in the congress, Federal Secretary Commerce Syed Asif Shah told participants at the Pakistan Development Forum here on Friday.

If approved, the legislation would enable Pakistani products gain free market access in the US, since it was aimed at improving the conditions of the depressed and deprived areas of Pakistan to counter poverty and extremism through job creation. Twenty districts and one tribal agency have been identified for the purpose, and would also include areas bordering Afghanistan besides earthquake affected areas in Azad Kashmir and NWFP.

He said on the basis of information received from the US through diplomatic channels, the ROZs should be situated in the belt along the Pak-Afghan border and not restricted only in the tribal areas.

The US authorities have asked Pakistan to establish customs rules for ROZs in order to have a rigorous process for verification of origin of products and also to develop high-labour standards at par with international standards.

Mr Shah said President Musharraf had originally requested President Bush to initiate negotiations on Free Trade Agreement (FTA) for greater market access but the US was reluctant to start talks on it citing the sensitivity of its textile sector as the main reason.

The US authorities said the FTA with Pakistan would not get congress approval due to strength of the textile lobby in USA and hence the concept of ROZs was taken up on the pattern of the Qualified Industrial Zones established in Egypt and Jordan that were covered under the US trade regulations.