ISLAMABAD: Federal Cabinet, which is scheduled to meet today, with an indicted Prime Minister Syed Yousuf Raza Gilani in the chair, will approve three agreements with India, to be signed during the ongoing visit of Indian Minister for Commerce, Industry and Textile Anad Sharma to Pakistan. Official documents available with Business Recorder reveal that during the fifth round of talks, held from April 27 to 28, 2011, the process of trade normalisation with India, which started in 2004, was to be taken forward.
Documents further disclose that in September 2011, Commerce Ministers of both the countries met in New Delhi and gave a clear political mandate to the respective Commerce Secretaries to lay down specific timelines for full normalisation of trade relations, dismantling of remaining non-tariff barriers and full implementation of the legal obligations under the Saarc agreement on South Asian Free Trade Area (Safta).
The Cabinet in its meeting held on November 2, 2011 gave a mandate to the Commerce Ministry to complete the process of trade normalisation with India.
In the sixth round of Commerce Secretary level talks held from November 14 to 15, 2011 at New Delhi, both sides discussed the process of trade normalisation further. In order to address the issue of Non Tariff Barriers (NTB) and to allay the concerns of businessmen, the two sides agreed to conclude three agreements i.e. Cooperation and Mutual Assistance in Customs Matters Agreement, Bilateral Cooperation Agreement on Mutual Recognition between PSQCA and BIS, and Agreement on Redressal of Trade Grievances.
The Ministry of Commerce acquired permission of the Cabinet for negotiating these agreements with India.
The salient features of the agreements between Pakistan and India are as follow: (i) agreement on Cooperation and Mutual Assistance in Customs Matters - the agreement envisages the exchange of information to ensure proper application of Customs Laws and accurate assessment of customs duties. Provision of proper and adequate infrastructural facilities at the entry and exit customs stations will be ensured through this agreement; (ii) Bilateral Cooperation Agreement on Mutual Recognition between PSQCA and BIS- the agreement would be signed between the regulatory authorities of both the countries. This would provide a formal mechanism to harmonise standards and conformity assessment procedures for the products of export interest; and (iii) Agreement on Redressal of Trade Grievances. The agreement between the two Commerce Ministries would provide a mechanism whereby complaints regarding valuation, classification, delays in clearance of goods, certification, testing etc. at land, air and sea ports would be registered and redressed. According to official documents, Pakistan side has finalised the texts of the three agreements in consultation with the Indian side.
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