Pakistan Demands India to Sign Four Agreements to Address NTBs

Secretary Commerce Zafar Mehmood here on Dec. 22, 2011 announced that India has no Pakistan specific tariff and non-tariff barriers (NTBs), however, for removal of general tariff and non-tariff barriers faced by our exporters, Pakistan has demanded India to sign four agreements.

To gain level playing trade opportunities after trade normalisation with India, Pakistan has asked for signing of these agreements: Customs Cooperation Agreement, Mutual Recognition Agreement, Redressal of Grievances Agreement and Preferential Tariff under SAFTA arrangement, he informed the Senate Standing Committee on Commerce which met in the parliament house with Senator Ilyas Bilour.

"We have asked Indian side to get signing approval of such agreements from their relevant ministries or departments before the arrival of their commerce minister's arrival in Pakistan by mid February 2012," Secretary Commerce added.

In his first ever briefing to parliamentary committee, Secretary Commerce explained that there are technical, environmental and public health related additional measures are in place in India like upward revision in valuation of goods imported from Pakistan by Indian Customs, lengthy and costly and short period certification of standards by Indian authorities, composite tariffs charged by Indian customs in addition to normal import duty, lengthy process of checking of samples and ingredients of final product.

He informed that the said four agreements that Pakistan has demanded India to sign would help remove difficulties faced by Pakistan exporters while exporting to India. These agreements would bind both the countries to accept certification of national laboratories, accept valuation declared by exporters, removal of composite duties and other difficulties.

He informed that Pakistan is going to shift its trading arrangement with India from positive list to negative list, under trade liberalisation arrangement and so far local industries have proposed less than 1000 items for placement in negative list. He, however, explained that many items proposed by local industries need to be excluded from proposed negative list as few of such items are not even imported from India or already in positive list of Pakistan which stands at 1958 at present.

He categorically said that there is no international pressure on Pakistan to give MFN status to India and also mentioned that there is trust deficit between the two countries as well as within the local industry that their interest might not be safeguarded. India had demanded Pakistan to give MFN status with a single stroke of pen, however, Ministry of Commerce would ensure sequencing of events before it to ensure proper safeguards to them. When Ministry of Commerce would approach federal Cabinet in February 2012, we would ensure transparent presentation so as to reach at final decision.

When asked about would Pakistan delay implementation of negative list beyond December 31, 2012, Secretary Commerce said that it's the federal cabinet to decide this.