Differences have emerged between India and other Saarc member countries over the implementation procedure of South Asian Preferential Trade Agreement (Safta), well-placed sources told Business Recorder. "India wants implementation of Safta as it is, but other members, including Pakistan and least developed countries (LDCs) asked for product-by-product implementation," they added.
When contacted for comments an official close to the deliberations, they confirmed that there were differences between India and other member countries over the implementation procedure of Safta, and hoped that the issue would be resolved amicably.
The member countries, however, agreed to direct their commercial councillors to pursue their respective countries' cases in the World Trade Organisation (WTO) for seeking further concession in trade, the sources said.
They said the Saarc commerce ministers started a two-day parley in Islamabad on Monday to resolve differences over Sapta and Safta, adding Pakistan's Commerce Minister Humayun Akhtar was formally elected the chairman of the meeting.
The participants of the meeting unanimously adopted the report prepared by the Committee on Economic Co-operation (CEC) comprising commerce secretaries of Saarc countries during their two-day meeting on November 20-21, 2004 at Islamabad.
On the first day, Saarc commerce ministers discussed wide ranging subjects like Safta, trade facilitation, European Commission's GSP Scheme and WTO-related issues. It was agreed that Saarc should be made a vibrant and powerful economic bloc.
According to a press release, Humayun Akhtar made the inaugural speech highlighting significant issues concerning Saarc, saying that though the member countries experienced a cold spell in relations, but the spirit of Saarc remained alive. The year 2004 will always be remembered in the history of Saarc, as the Summit held in January last was a resounding success, he added.
He said the leaders of all Saarc countries got together in Islamabad, where a framework agreement on free trade was signed, having the potential of an engine of expansion of trade and commercial relations, affecting lives of about 20 percent of the world population. The expansion in trade would create opportunities and regional co-operation would enable each country to succeed in eliminating hunger and poverty in the foreseeable future, he added.
Humayun Akhtar also said the signing of Safta, however, was only the beginning, asking to deliberate and making concerted efforts to operationalise it by the target date from January 2006.
The deliberations of committee of experts, he believed, were at a crucial stage, hoping that the process of finalising the sensitive list and Rules of Origin, would proceed further in the same spirit of accommodation, which was witnessed while signing Safta. This is the region where majority of member are least developed countries.
He was of the view that Safta provided a mechanism of preferential and differential treatment to LDCs, saying this agreement has bound the developing countries to provide technical assistance, and develop a mechanism of compensation of revenue loss to LDCs.
He said the experience has shown that trade facilitation measures and a positive approach was perhaps more important to increase regional trade and commerce, adding without this, it would be difficult to achieve objectives of Safta.
Humayun Akhtar, however, said the development of regional infrastructure and harmonising customs and quarantine procedures was an area where more efforts would be required to allow free movement of goods across the Saarc region.