ISLAMABAD: The United States Tuesday expressed its keenness to sign Bilateral Investment Treaty (BIT) with government of Pakistan immediately to boost trade between the two countries, whereas the latter wants to complete the inter-agency consultations before signing the treaty.
Giving background briefing to a group of journalists on the BIT, Y Robert Ewing, Counsellor for Economic Affairs, Embassy of United States, said that the US was committed to signing the treaty with Pakistan and was prepared to sign it immediately. However, a joint news conference which was to be addressed by the US officials along with Chairman Board of Investment (BOI) Saleem Mandviwalla was cancelled on Tuesday for unknown reasons.
It was for the second time that the joint news conference in this regard has been cancelled in last two weeks. The BOI chairman told Business Recorder that there was no other reason except timing. "When they (US officials) want to do (press conference) I am not available, when I want to do they are not available... so, I told them they can go ahead don't wait for me," Mandviwalla said.
Robert Ewing, while responding to a query on twice cancellation of the joint news conference with the BOI chairman, however, said that they have been conveyed by the Pakistani officials that the government of Pakistan has yet to complete the consultation among various ministries involved. "We are concerned by the delay," he said, adding that the US fully respects Pakistan's internal consultations. At the same time, Robert also said that the US would welcome a written description of Pakistan's concerns on the BIT, which the US negotiating team would be pleased to discuss in Washington or London, or via digital video conference, at a mutually agreed upon date, adding that as the text has been initialed, the purpose would be to discuss the content and operation of the agreement, not to reopen the text.
He said the United States reopened negotiations on the BIT on the request of the government of Pakistan. "Pakistani government officials have assured us of their commitment to sign the BIT...That's why they initialed the main text in March. We believe we concluded all negotiations in August," he pointed out.
"We firmly believe that the BIT would signal that Pakistan is open for business, leading to greater investment, and more jobs," he noted, adding that the Treaty would demonstrate Pakistan's commitment to the rule of law, transparency and other policies that support a welcoming investment climate.
He further said that greater investment in Pakistan would create more jobs in the country, which has already signed a number of Bilateral Investment Treaties. He further said that a BIT would also help Pakistan be more competitive in the global market. "A US-Pakistan BIT is a tangible representation of our commitment to trade, not just aid. The BIT will support and boost other Pakistani efforts to attract more investment, from the London Investment Conference concluded on October 5, to USAID's Pakistan Private Investment Initiative, which will use US government funding to help launch investment funds to invest in Pakistani businesses and help create jobs," he noted.
He further said the two-way trade was already strong - trade between the United States and Pakistan was over 5 billion USD in 2011. He said that the United States buys more of Pakistan's exports than any other country and over 20 percent of Pakistan's exports go to the US.
Meanwhile, a spokesperson for the US Embassy, while commenting on the issue as which sectors might be excluded from the provisions provided for in the treaty, said, "We would like to underscore that all BITs allow for an "essential security" exception, to be negotiated between the two countries. The "essential security" article in the BIT gives Pakistan very broad authority to undertake any measure it considers necessary to protect its security interests." She pointed out that this article gives assurance that the BIT respects national security policy and actions. "The US side has already agreed to Annex II non-conforming measure exception for the atomic energy sector," the spokesperson added.