Understanding on trade liberalisation: government seeks to know whether India still stands by it

The government has decided to seek Narendra Modi-led Indian government's opinion formally on whether New Delhi still stands by the understanding reached in March 2014 between the two countries on trade liberalisation or to the December 2012 pact agreed with the PPP government, well informed sources told Business Recorder.
Minister for Commerce Engineer Khurram Dastgir is representing Pakistan in the forthcoming South Asia Free Trade Agreement (SAFTA) ministerial meeting to be held in Bhutan next week. The sources said Pakistan's Commerce Minister is expected to meet India's junior Minister for Commerce and Industry Nirmala Sitharaman to discuss issues relating to trade liberalisation but so far no time has been scheduled for the meeting.
Technical committee of SAARC countries will meet on July 21 -22 to review progress on South Asia Free Trade Agreement (SAFTA) and finalise recommendations for the Ministerial conference. Sources claim that Commerce Minister has already obtained a No Objection Certificate (NoC) from the Ministry of Foreign Affairs (MoFA) with regard to the meeting.
In March this year, the two countries were very close to sealing a deal on complete trade normalisation after the Congress (I) government accepted Pakistan's demand to remove textile products from the negative list. However, Pakistan's Cabinet meeting which was to approve the deal documents, postponed approval arguing that it would wait for the result of the May Indian elections.
"Pakistan will inquire on the sidelines of the SAARC meeting whether the Indian government will honour the understanding on trade normalisation reached between the two countries in March 2014," the sources added. A couple of months ago, Indian Secretary External Affairs Sujatha Singh remarked that the new government of India stands by the trade deal finalised in December 2012. Her comments, sources said, have created confusion between Islamabad and New Delhi. "We will try to remove confusion of March 2014 and December 2012," the sources continued.
In reply to a question, the sources said Pakistan will maintain a sensitive list for SAARC countries. However, Pakistan is considering maintaining two sensitive lists ie one of Least Developed Countries (LDCs) like Bangladesh, Nepal, Bhutan and Afghanistan and another for other SAARC countries. "We want to improve our relations not only with India but also SAARC Least Developed Countries (LDCs)," the sources maintained.
The sources further stated that Pakistan will be now more open to giving preferential access to LDCs which is not available presently. One of the LDCs has requested Pakistan for removal of sensitive list; however, Pakistan intends to treat all LDCs at par and without any discrimination, the sources further added. When contacted Commerce Minister Khurram Dastgir confirmed that his meeting with Indian Junior Minister for Commerce and Industry is expected on the sidelines of SAARC Ministerial conference in Bhutan next week.