Pakistan has asked the United States to adopt rational approach on some of the disputed clauses of Bilateral Investment Treaty (BIT), including arbitration, investment compensation and the role of the Parliament and judiciary.
Commerce Minister Humayun Akhtar Khan demanded this at a meeting with US Assistant Trade Representative (AUSTR) Douglas Alan Hartwick here on Thursday in which trade relations, especially progress on BIT, Reconstruction Opportunity Zones (ROZs) and Trade and Investment Framework Agreement (TIFA), were discussed in detail.
The commerce minister urged the AUSTR to convene TIFA council meeting as soon as possible with the participation at the highest level from the US to boost trade relations between the two countries.
The last meeting was held two years back in Washington, whereas the next round of talks would be held in Islamabad.
"Both the sides agreed to hold TIFA council meeting as soon as possible, given long lapse of time since the last meeting, as it was in mutual interest of both the countries," a press release said.
The commerce minister and AUSTR also agreed that BIT must be concluded as early as possible as it would pave the way for Free Trade Agreement (FTA) between the two countries.
The press release quoted the commerce minister as saying that Pakistan wanted to enter into FTA with the US.
He said that market access to Pakistani products in the US market was vital, as it would alleviate poverty, which is the root cause of extremism.
Both the sides also discussed Reconstruction Opportunity Zones (ROZs) - an initiative announced by the US president during his recent visit to Pakistan. Under this arrangement, goods manufactured in ROZs will enter into the US market duty-free when they meet agreed rules of origin. The minister stressed upon the need to expedite finalisation of the modalities for ROZs.
Pakistan's trade with the US has progressed over the last few years. Pakistan's exports to the US increased by 13.2 percent in 2005 as compared to 2004. Major textile and apparel exports grew by 14 percent.
In the current year, exports from Pakistan have shown extraordinary growth as per the statistics of January 2006. Pakistan's textile exports and apparels have increased by 46 percent in January this year as compared to January 2005.-PR