Indian Commerce & Industry Minister Kamal Nath has taken up with South Asian Association for Regional Co-operation (Saarc) Secretariat issue of restricted import of goods under South Asian Free Trade Agreement (Safta) from India by Pakistan and said notification by the Pakistani government dated July 1, 2006 to this effect is against letter and spirit of Safta.
"I am sure you would agree with me that Safta has little operational meaning if Pakistan does not apply Safta to all items, except those tariff lines in the sensitive list, to all member countries," Kamal Nath said in a letter to Saarc secretary-general. He said the Pakistani government had earlier ratified Safta.
Safta, signed by seven member states of Saarc during its 12th summit in Islamabad in January 2004 came into force from January 1, 2006 under which Saarc-member countries are to implement trade liberalisation programme as per Article 7 from July 1, 2006.
India notified reduction of tariffs as per Article 7 of Safta agreement on July 1, 2006.
Kamal Nath said notification issued by the government of Pakistan on July 1, 2006 has notified tariff concessions on import of 4,872 items from Saarc-member countries.
However, according to this notification, imports from India would be subject to Pakistan import policy order of July 2005, which restricts imports of goods from India or goods of Indian origin to a positive list of only 773 items, the letter stated.
He urged Saarc secretary-general to convene Safta ministerial council meeting for consideration of this important matter and requested him to convey India''s concerns to all Saarc-member states.