Commerce Secretary Zafar Mahmood and his Indian counterpart Rahul Khullar reached “broad agreement” and emphasised on the establishment of a preferential trading arrangement (PTA) between the neighbouring countries at the two-day discussions in New Delhi — aimed at doubling annual trade in the next three years to $6 billion.
Mahmood also made a poignant and heartfelt appeal to India during the official talks.
“I want to assure you: Please have trust and faith in the process (of the normalisation of trade). Times have changed. The world is coming closer,” he said in his opening remarks.
Mahmood said Pakistan “hopes to cover a lot of distance” during this week’s talks.
“Through this meeting we want to create an atmosphere through which the composite dialogue can go forward.”
Response
India responded by thanking Pakistan for taking the first steps towards offering the MFN status and flagged visa liberalisation as the biggest hurdle in bilateral trade.
“We recognise that the current visa arrangements are one of the most significant barriers to expanding our bilateral trade,” the Indian commerce secretary said during the meeting.
Khullar said India and Pakistan have reached a “broad agreement” to liberalise business visas which would help spur cross-border trade.
The Indian commerce secretary said that business communities on both sides were also expecting a “substantial breakthrough” to not only normalise the trading relations between both the neighbours but also establish a broad-based preferential trade agreement.
“We are hopeful that an agreement shall be finalised during the next round of home secretary level talks, slated for December,” he told the delegates.
During the recently concluded South Asian Association for Regional Cooperation (Saarc) Summit in the Maldives, Indian Prime Minister Manmohan Singh had highlighted the need to establish a PTA with Pakistan during his meeting with Pakistan Prime Minister Yousaf Raza Gilani.
“The cabinet not only gave its full approval but also mandated the commerce ministry to achieve complete normalisation of trade with India,” Mahmood told the meeting in New Delhi.
Khullar replied: “We welcome the decision recently taken by the Government of Pakistan to accord the MFN status to India and to the mandate given for full normalisation of bilateral trade relations as also meeting of all legal obligations”.
In September, during the visit of Pakistan’s Commerce Minister Makhdoom Amin Fahim, India and Pakistan had set the target of achieving $6 billion worth of bilateral trade from $2.7 billion at present.
“We are open to preparing a roadmap with Pakistan for a PTA under the South Asian Free Trade Area (SAFTA) process. I hope that through our discussions starting today [Monday], we will achieve a greater clarity on such arrangements. Our goal should be to reach peak tariff levels of no more than five per cent for all major traded and tradable commodities,” Khullar added.
Meanwhile, India’s Commerce Minister Anand Sharma has said that he would lead a trade delegation to Islamabad next February at the invitation of his Pakistani counterpart, Fahim. (WITH ADDITIONAL INPUT FROM AFP)
Edited by Musab Memon
Published in The Express Tribune, November 15th, 2011.
COMMENTS (9)
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@Sher Dil Again a victim of biased text-books.
Assalam-o-Allaikum Warahmatullah.India is your best friend and may prove its best ever friendship with you but provided that if you don't talk to India on Kashmir issue but on all the other issues.
@antanu: LOL. Who are you trying to Address? Uncle Sam Will not Sabotage it. You and I both Know that. It was your Govt. and Uncle Sam last time together who sabotaged it.And Let's Not Blabber and give lectures about Pakistan and ISI role into this. Uncle Sam Wants the trade to start so that pakistan open up for India and give it way to Central Asia. That is the whole exercise. Since Uncle Sam is badly beaten by Taliban in Afghanistan and He wants to get out from there as soon as Possible, He wants to make sure his Proxy(India) take over from him. And it is impossible without Pakistan give you guys way to go over there. We know all this exercise is for that reason. Trade is just the front runner. Actual hidden Agenda is just what I told here. But I assure you, People of Pakistan will not let it happen until your Terrorist Hindu Govt. do not stop Kashmiri Massacre and Stop financing , training and giving shelters to terrorists and inject them into Balochistan.Hindu State can not fool ordinary pakistani with such free trade slogans. We do think trade is a good thing but not with enemies who are Training and financing terrorists Internationally and doing terrorism to its own population( over 100,000 kashmiris dead) . You can try whatever you want, but nothing is going to move a bit until People of Pakistan see any progress on these two issues first. Now, You and your trolls can go and Blabber whatever they wish. I don't care.
Why most of Press is looking this event as part of peace process and " The cabinet’s decision was seen as a breakthrough in efforts to thaw relations between the South Asian neighbours who have fought three wars since independence from Britain in 1947." Why is it not seen purely as "decision to ease trade barriers could open enormous opportunities in sectors such as agriculture, textiles and pharmaceuticals for the two countries." This granting of MFN is being painted as a great favour to India where as the truth is that it will double the trade for both countries and is mutually beneficial...SOME THING THAT SHOULD HAVE BEEN DONE LONG AGO.
Great. We will buy anything from Pakistan. Except PAF JF17.
"We have to fully normalise our relationship and you cannot fully normalise the trade relationship without invoking the MFN principle (and) so we will be working on that,” In analogy either you are married or not married. You can not say I am married in principal. It is failing the mustard test.Something is missing here, I do not what and creating doubts other wise why this ambiguous statement.
Cool, cheaper onions for all!
Good Luck to both the countries.........come out with revolutionary ideas to promote ties.Bits and Piece wont do any good under present circumstances.Take a great leap forward urgently so as to avoid getting any chance to uncle SAM to sabotage it.