M A I N   N E W S

Positive signals from Pakistan on trade ties
Rajeev Sharma
Tribune News Service

New Delhi, July 11
Positive signals are understood to be emanating from Pakistan on stepping up trade and economic cooperation multilaterally with SAARC countries — a move which would indicate, if it fructifies, that Islamabad agrees with the Indian line of thinking of “Trade first, Kashmir later”.

A crucial expert-level meeting of South Asian Association for Regional Countries (SAARC) is slated to be held in September, most likely in Kathmandu, where attempts would be made to prepare a draft treaty on South Asia Preferential Trade Agreement (SAPTA).

Foreign office spokesman, Navtej Sarna, remarked in his today’s briefing that some movement was noticeable on SAPTA.

The idea is that the draft treaty on SAPTA would be put up for final approval at the January 4-6, 2004 SAARC summit in Islamabad which would also pave the way for South Asia Free Trade Area (SAFTA).

Diplomatic sources here say that if concrete progress is made on SAPTA and SAFTA, then India’s long-standing demand from Pakistan for the grant of Most Favoured Nation (MFN) status would become redundant as a free trade regime in the region is far better than getting MFN status from partner countries.

A more important ministerial-level conference of SAARC is going to be hosted by India in the last quarter of this year which would focus on three issues — health, science and technology and information and broadcasting.

It is understood that the expert-level September conference on SAPTA — which will be the fifth meeting — would be crucial for determining India’s attitude in dealing with Pakistan and attending SAARC summit in Islamabad in January 2004.

In case, Pakistan raises obstacles in draft treaty on SAPTA as it has done so far, India may well have a rethink on the very meaningfulness of attending the SAARC summit. In this sense, the onus is now on Pakistan,” a senior official here commented.

India and Pakistan are the key players in SAARC and a vibrant bilateral cooperation between them would boost not only bilateral trade but also regional trade.

Pakistan’s track record in trade cooperation among SAARC countries is far from good. Under SAPTA, India has extended to Pakistan tariff concessions on 393 items upto Third Round of SAPTA, but Pakistan has provided to India tariff concessions only on 248 items. Of these 248 items, 78 cannot be imported from India as these are on the banned list.

It had been decided way back during the SAARC summit at Maldives that SAFTA would be signed by 2002 but it could not be signed because of Indo-Pak tensions.