Minister of Commerce and Industry Shri Kamal Nath

 takes up Pak SAFTA issue with SAARC Secretariat

(New Delhi; July 6, 2006)

 

Shri Kamal Nath, Union Minister of Commerce & Industry, has taken up with the SAARC Secretariat the issue of restricted import of goods under the SAARC Free Trade Agreement (SAFTA) from India by Pakistan and said that the notification by the Government of Pakistan dated 1st July 2006 to this effect is against the letter and spirit of SAFTA.   “I am sure you would agree with me that SAFTA has little operational meaning if Pakistan does not apply SAFTA to all items, except those tariff lines in the sensitive list, to all member countries”, Shri Kamal Nath has said in a letter to the Secretary General of SAARC. The letter also recalls that the Government of Pakistan had earlier ratified SAFTA without any reservation.    

 

The SAFTA, signed by the member states of SAARC during its 12th Summit in Islamabad in January, 2004, has came into force from 1st January 2006. Under this agreement, SAARC member countries are to implement the trade liberalisation programme as per Article 7 from 1st July, 2006.   India has accordingly notified the reduction of tariffs as per Article 7 of SAFTA Agreement on 1st July, 2006.  The notification (SRO No. 695(I)/2006) issued by the Government of Pakistan on 1st July 2006 has notified tariff concessions on import of 4872 items from SAARC member countries.   However, according to this notification, imports from India would be subject to the Pakistan import policy order of July 2005 which restricts imports of goods from India or goods of Indian origin to a positive list of only 773 items, the letter points out.    

 

The Minister has urged the Secretary General of SAARC to convene the SAFTA Ministerial Council Meeting for consideration of this important matter and also requested him to convey India’s concerns to all SAARC member countries.  

 

[NB: Pakistan’s positive list of imports is 4872 items and 1183 items are in the Sensitive List i.e., not subject to tariff liberalisation].     


New Delhi,

Jul 6,  2006

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