ISLAMABAD: Pakistan and India on Wednesday signed three trade agreements but deferred finalisation of anxiously-awaited controversial negative list. The three pacts signed by the officials of both the countries are Customs Co-operation Agreement, Mutual Recognition Agreement and Redressal of Trade Grievances Agreement.
"Pakistan has indicated that it will start trade with India on the basis of negative list from March 2012, after completing consultation process with other stakeholders but insiders claim that Islamabad has taken a principled decision to adopt a cautious approach in this regard," an official requesting anonymity told Business Recorder. This is the crux of deliberations between the Indian delegation led by Minister for Commerce, Industry and Textile, Anand Sharma and the Pakistani team led by Senior Commerce Minister Makhdoom Amin Fahim.
However, insiders in Commerce Ministry claim that it is still unclear whether or not the negative list of 636 tariff lines would be accepted by other stakeholders including Ministry of Textile Industry and the Establishment. Both the leaders, who reached the press conference venue two hours late, gave a very short time for questions to the waiting journalists.
"What I can say is that no concrete progress has been made in the dialogue on any key issue," commented one official who was part of the dialogue process. Replying to various questions, the visiting Indian Commerce Minister said that the dialogue process between Pakistan and India was moving in the same directions which were agreed by both the Commerce Ministers during the visit of Makhdoom Amin Fahim to India.
He was of the view that both the countries had to move forward for the betterment of the people, economic prosperity and with trade between the two countries, Pakistan will get a market of 1.2 billion people in India. He did not give a plausible answer to question why Pakistan and India were not encouraging bilateral investment. He, however, stated that appropriate measures are needed for investment.
When a question was raised on the rejection of negative list by the Federal Cabinet, Secretary Commerce, Zafar Mahmood sought to dispel the impression. "Cabinet has not rejected the negative list, rather Commerce Ministry has been directed to consult other stakeholders properly and bring it back to Cabinet," he said, hoping that the process would be completed by the end of current month.
Commerce Minister, Makdoom Amin Fahim, was of the view that all the issues would be finalised by the Commerce Secretaries of both the countries. Indian Commerce Minister said that economic engagement would bring stability and prosperity to the region, adding that the three agreements signed would be beneficial. In reply to a question whether there was any final date regarding opening of bank branches in each others country, the Indian Commerce Minister did not give any clear-cut date. According to him, officials of Reserve Bank of India will soon meet a delegation of State Bank of Pakistan to resolve such issues.
APP adds: Pakistan and India Wednesday signed three trade agreements with pledges to adhere to all the accords in letter and spirit and build bridges of understanding to lead the two countries towards prosperity and stability. The two sides signed agreements including Customs Co-operation Agreement, Mutual Recognition Agreement and Redressal of Trade Grievances Agreement to build confidence of the business community on both the sides.
The agreements were signed at the conclusion of bilateral trade talks between the Commerce Ministers of Pakistan and India. Through the implementation of these agreements, the two countries will systematically address the issues related to non- tariff barriers. Addressing a press conference Minister for Commerce Makhdoom Amin Fahim flanked by his visiting Indian Counterpart Anand Sharma said that Pakistan and India after their deliberations have agreed to continue the process of the normalisation of trade relations between the two countries.
Indian Commerce Minister Anand Sharma said: "We are here to building bridges between Pakistan and India generate more resources." Both the sides also reiterated to adhere to the roadmap drawn up by the Commerce Secretaries for full normalization of trade relations. It has also been agreed that Pakistan will move from a Positive List to a small Negative List by February 2012 while the negative list is to be phased out and the timing for this will be announced in February at the time the list is notified.
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