New Delhi : India has assured Pakistan that it would favourably consider its demand for entering into a Preferential Trade Agreement (PTA).
The issue came up for discussion during closed door talks between Commerce Secretaries of two countries on April 27-28, 2011 in Islamabad. Pakistan wanted a PTA with India to be done as soon as possible that would promote bilateral trade by extending tariff concessions on products of export interest to both countries, Hindu newspaper reported on Friday.
Indian side told Pakistan’s negotiating team that it did not have the authority to take decision on such an important issue and the matter will have to be first deliberated by Prime Minister’s Trade & Economic Relations Committee before any final decision is taken. At the same time, India told Pakistanthat it should first fulfil obligations under SAFTA and then only talk of new arrangements.
However, officials in Indian Commerce & Industry Minister said the matter will come up for discussion at meeting of Prime Minister’s Trade & Economic Relations Committee. "We are certainly open to having such a agreement in place as it would give a positive fillip to exchange of businesses and trade between two countries," a senior Commerce Ministry official said.
On tariff and non-tariff barriers (NTBs), it was decided to set up a Working Group specifically dedicated to address and resolve clearly identified sector specific barriers to trade. First meeting of Working group will be held by September 2011. It was also agreed by two countries to have a group of experts from both sides to examine feasibility, scope and modalities of electricity trading. It will also look into issues of suitable sites for transmission lines, funding mechanisms and other related issues. Group composition would be finalized by June 2011 and first meeting held by October next.
Both sides also decided to work out how they could expand trade in all types of petroleum products. A group of experts from both sides would be set up before June 15 and deliberate on building cross border pipelines, use of road/rail route, including Munabao- Khokrapar route. Its first meeting will be held before September this year.The two sides also agreed to put in place a new initiative to promote bilateral trade in Bt. Cotton seeds. This would help Pakistani farmers and its textile industry by raising cotton yields and ensuring better cotton security. PPI
