ISLAMABAD, March 2: Pakistan will seek preferential market access for its textile products to the United States during President Bush’s visit to Pakistan. Talking to Dawn on Thursday, Textile Industry Minister Mushtaq Ali Cheema said that Pakistan’s textile products were cleared on paying an average 10.5 per cent customs duty to reach the US market.

The minister said this issue among others would be raised with US President George W. Bush on Saturday. Pakistan’s exports to the US constituted 90 per cent of textile products and 10 per cent other products, he added.

The minister, however, clarified that the market access for textile products was only possible when the two countries would ink the much-debated Bilateral Investment Treaty (BIT).

Mr Cheema said that during the recent visit of the prime minister to Washington, the draft agreement was discussed for two days but no breakthrough was made in around eight areas.

“The US is only ready to talk about free trade when Washington ensures a level-playing field for its investors in the contracting country,” the minister remarked. “This is only possible after the sighing of the BIT.

Answering a question, the minister said that in case the US ready for free trade agreement, the duty would be slashed down to zero per cent, which would make Pakistani products more competitive with those coming from other countries like India, China and Bangladesh.

When asked about the possibility of sighing of the BIT, Mr Cheema said that it was likely that during the US president’s visit, Pakistan’s concerns would be addressed. “There are 50 per cent chances that the agreement may be signed.”

Sources said the areas, which were yet to be decided, included the definition of some key terms and scope of the treaty. “Pakistan has proposed a few amendments which the US officials are not considering.”

The sources said the most serious concern of the US was about the effective implementation of intellectual property rights (IPRs) laws in Pakistan. Another controversial clause was related to the extent of indirect expropriation and compensation mechanism. Under this clause, the United States wants that in case of any loss to any intended US investor because of change in policy or government or law and order, etc., in Pakistan, the government of Pakistan would be responsible for payment of loss to the investor.

The sources pointed out that under the non-confirming issues, the US included a clause in the agreement that bound Pakistan to seek an approval from the US before finalizing any export, import or taxation related policies.

They said the US also wanted that the agreement should have a retrospective status to cover the earlier investment, as it was not sure that the agreement would be helpful in attracting any fresh investment from the US because of other issues like war on terror, law and order and travel advisory.

Other thorny issues, which remained unresolved during the last four meetings, included taxation and tariff on US investment and regulatory issues, extents of subjects for arbitration and performance requirements in the light of World Trade Organization, added the sources.