ISLAMABAD, March 8: The United States has suspended negotiations with Pakistan aimed at sorting out differences on remaining issues for finalising the much-awaited bilateral investment treaty (BIT).
“A small but significant number of differences have persisted on issues of considerable importance to the United States and these negotiations are currently suspended,” said the 2008 Trade Policy Agenda and 2007 Annual Report of the President of the United States on the trade agreements programme.
The report, recently submitted to the US Congress, elaborated upon the pace of development on various issues with partner countries.
It said in 2007 the USTR continued efforts to finalise a BIT, which would provide significant legal protection to US investors in Pakistan.
The two countries are expected to resume talks on the remaining issues after formation of a stable elected government in Islamabad.
A third meeting under the head of Trade and Investment Framework Agreement (TIFA) is expected to be held in the spring of 2008 to discuss issues for improving trade relations between the two countries.
In the aftermath of 9/11, Pakistan has been a critical partner on the front lines in the fight against Al Qaeda and the struggle to counter extremism.
“Our task is even more important today as the Pakistani people look to a democratic transition in the wake of the tragic death of Benazir Bhutto,” the report said.
In addition to these activities, President Bush announced setting up of Reconstruction Opportunity Zones (ROZ) in March 2006. Under the plan, President Bush is seeking authorisation from Congress to allow certain products manufactured in designated zones in Afghanistan and key border areas of Pakistan to enter the United States without duty.
The goal is to facilitate job creation and economic development in these sensitive areas as a bulwark against extremism and terrorism.
In 2007, the US administration completed drafting the proposed ROZ legislation. The administration is working with Congress regarding introduction of this legislation. In addition, state, commerce, and agriculture departments are planning a number of activities to complement the ROZs, aimed at developing small business and agriculture in the region, said the report.
According to the report, Pakistan made progress in recent years to improve copyright enforcement, including taking significant steps against unauthorised optical disc production and exports of pirated optical discs.
However, the report said Pakistan did not provide adequate protection of all intellectual property and in the enforcement area, prosecutions and deterrent sentences for intellectual property infringement were lacking.
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, said the report.
