ISLAMABAD: Pakistan urged its regional peers to bring down non-tariff barriers for promotion of trade as the pool of regional experts suggest to reinvent the South Asian Association for Regional Cooperation (Saarc) and to break barriers before finding solutions to common problems.
While proposing finding common grounds to emerging problems, Pakistan’s Defence Minister Naveed Qamar said that a lot has to be done to bring down the non-tariff barriers for greater intra-regional trade. Qamar was speaking at the inaugural session of the fifth round of South Asia Economic Summit on Tuesday.
Delegates gathered in Islamabad for the three-day conference with an aim to find ‘out of the box solutions’ to break from the chains of the past to achieve greater regional integration. The prime objective of the summit is to formulate policy recommendations for the 18th Saarc summit. The participants suggested establishing a South Asia Commission on Environment to tackle emerging climate change problem.
Speaking on abolishment of tariffs, Qamar said that progress has been made and in January 2013 the tariffs will be further reduced, hinting at complete trade normalisation between India and Pakistan. Islamabad is expected to remove the last legal hurdle in the complete trade normalisation process but that requires repealing the non-tariff barriers enacted by India.
Qamar said that the issue of climate change has long been ignored by South Asia and has now begun to haunt the region. He suggested formulating a regional climate change policy and to allow food movement across the borders.
He hoped that thaws in relations between India and Pakistan will give a boost to the efforts to find mutual solutions to mutual problems.
Published in The Express Tribune, September 12th, 2012.
COMMENTS (11)
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All importers do require product testing by independent laboratories designated by them. On top of that most retailers in US send their inspectors to see the Pakistani manufacturers are in compliance with the local labor laws like over time pay and child labor. This also may be considered NTB by Pakistan if done by India.
For God sake, go and sleep !!!!!!!!!!
@BlackJack: "mport rates are not NTBs since they are related to the tariff itself; however, imposing restrictions on minimum import prices for certain goods is an NTB with which India safeguards itself from dumping by China – again most other nations have some form of this NTB in place."
You are right about this ofcourse. Seems to me our opinion did not differ on much else, though you did elaborate on some other NTBs.
@gp65: A couple of points where I have a different PoV: 1. The port delays and infrastructure bottlenecks are not non-tariff barriers that can easily be dismantled. However, given that Pakistan is the only country that will use the Western land route, any infrastructure bottlenecks on that side will indeed be Pakistan-specific barriers. Further, there are NTBs in place such as designated imports through specific terminals that need to be addressed. 2. Local testing, lab testing of textiles and labelling requirements are indeed major NTBs, and labeling/ safety standards regulation is one that most western nations impose. 3. Import rates are not NTBs since they are related to the tariff itself; however, imposing restrictions on minimum import prices for certain goods is an NTB with which India safeguards itself from dumping by China - again most other nations have some form of this NTB in place. 4.Additional documentation is a big bottlneck that can be eased. As you indicate, this is applicable for all trading partners. However, Pakistani products and documents are subject to a high degree of scrutiny which can cause delays. This has already been brought up in the last trade talks.
Apart from these, quantitative restrictions on certain categories, rules of origin (not really practiced by India), and phytosanitary restrictions are also in vogue in most markets in the world including India.
@Raj - USA: It's not so simple and India might not do it for now. India is following what Japanese, and other developed nations did. It's an another way to compel companies to set up manufacturing facilities in India...
@Raj - USA: The first issue also can be addressed through -addressing the labour unions and mathadi workers issues at large ports like Bombay port -greater investments in containerization -more berths (some delays are due to botlenecks which can definitely be cleared. - th corruptio is actually directly liked to point 3. If import rates are lower the corruption motivation automatically goes down.
At one time customs duty was viewed as a key source of revnue (constituted 40% of total tax collection in the cuntry). It now constitutes just about half as much i.e. 20% of tax base. But the resistance to lowering tax rates comes from domestic manufacturers who want protection. Car making is a classic example. In fact duties on iported cars is one of the biggest holdups in the Indo -Euro FTA from their side.
@gp65: Thank you for the info. Appreciate it. Nothing could be done for item # 1 you have mentioned. However the remaining two items can be and should be addressed. In the long run it would be beneficial for India also.
cannot understand how people in pak believe these lies one after another.. its so shameful that our country is in blatant violation of WTO rules. Other countries like India can drag our nose to ground on international forums over this. We must be grateful to indians, instead telling lie and double speak.
@Raj - USA: The non-tarriff barriers are not Pakistan specific and relate to India's red tape and infrastructure bottlenecksmaking imports more expensie in relation to domestic goods . Some examples: 1) Delays and corruption on Indian ports which add cost and delays to the overall transport process 2) The requirement for local testing instead of relying on international certifications which agains adds to cost and time 3) Import rates which even after 2 decades of liberalization are higher than our key trade partners.
I hope this helps.
What exactly are the non-tariff barriers from the Indian side. i have heard Pakistan complain on this often but have not read the specifics anywhere. Would appreciate if someone can list the barriers.
This is a deliberate lie that Pakistani leaders are telling its people. PAkistan is not in compliance with WTO and has not been for last 16 years by denying MFN to India. India's non-trade barriers on the other hand are NOT Pakistan specific. Thus India is and has been in compliance with WTO since 1996 - when along with other WTO member countries it also granted MFN status to Pakistan.
To link the 2 things is deliberate deviousness and a way to provide excuse for not meeting their own commitments when India met its commitments in terms of releasing its objection to Pakistan specific trade exemptions by Euro.