The burgeoning non-tariff barriers (NTBs) from India are hampering growth in bilateral trade between India and Pakistan, said the textile industry circles. Pakistan textile for domestic consumption is being discouraged with Pakistan-specific NTBs, ranges up to 60 percent of the cost of the product. Exports of Indian synthetic fabric to Pakistan, on the other hand, have jumped to 425 million dollars in 2009-10 against 30 million dollars in 2007-08.
The textile circles have raised eyebrows as how India has succeeded in making inroads to Pakistan, as the export of cotton fabric from Pakistan is not more than 33 million dollars to India. Even this export is being discouraged through NTBs by the Indian government, they added. An APTMA-submitted list of Indian NTBs suggest that the TBT & SPS measures ie, Multiplicity of Indian standards, rules, regulations and enforcement agencies are major impediments.
Further, lack of testing facilities/warehousing at the land border, non-recognition by Indian banks of L/Cs of Pakistani banks, delay in confirmation of L/Cs, payment defaults in the absence of any formal mechanism for trade dispute settlement, non-functional Sindh-Rajasthan rail link is a barrier to trade, inter-state taxes on movement of goods in India, Pakistan-specific inter-state taxation as only exports from Pakistan enter India by road and have to traverse through different provinces before they reach their destination are a few hurdles in bilateral trade.
Also, police reporting is more of a nuisance and harassment for Pakistani businessmen in India. In addition, the rail wagons carrying goods across the border return empty. On visas issues, major impediments included stifling visa regime, city-specific visa, requirement of sponsors, and absence of multiple visa regime, short duration visas, stipulation of the same port for entry and exit and stipulation of mode of travel.
The textile industry experts believe that the potential to grow is enormous so far as Indo-Pak bilateral trade is concerned. They said Pakistan is being restricted through an official tariff of 10 percent besides a number of non-tariff barriers, costing the landing of Pakistani textile to Indian at 60 percent than the cost of product.
The trade experts are of the view that it is not that Pakistani exports cannot compete in the Indian market. It is a question of a level playing field where subsidies or other NTBs do not confer an unfair advantage to domestic products. The multiplicity in India standards, rules, regulations and enforcement agencies acts as a major impediment as does a raft of Pakistan-specific NTBs.
Pakistani businessmen are of the view that they can compete in a number of areas such as agro-industry products, textiles and surgical instruments if there is a level playing field. The textile circles have questioned the efficiency of the government policymakers, criticising them for slumbering over the issue.
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