Will not review SAFTA tariff concessions: Pak

Islamabad, Feb 27: Pakistan has announced it will not review the tariff concessions extended to all member countries including India under South Asian Free Trade Agreement (SAFTA).

The announcement came after India's decision to withdraw tariff concessions for Pakistan under the agreement at the SAFTA ministerial council meeting at Kathmandu yesterday.

''Pakistan remains committed to continue with the trade liberalisation programme as stipulated in the SAFTA,'' foreign ministry spokeswoman Tasneem Aslam said here.

She said Pakistan considered any review by India of its already implemented tariff liberalisation programme as a ''violation of Article 7'' of the SAFTA.

She recalled that since July 2006, when the SAFTA tariff liberalisation programme was implemented, India had raised objections to Pakistan's notification for granting preferential tariff to other member states.

''It was claimed that by subjecting the preferential tariff to Pakistan's import policy, Pakistan had maintained a restrictive regime of imports from India,'' she added.

Ms Aslam said even Pakistani Commerce Minister Humayun Akhtar Khan had clarified the situation while addressing the SAFTA ministerial council that import restrictions like non-tariff measures, prohibitions to imports and quantitative restrictions continue to be applied by all the SAARC members for imports under SAFTA consistent with their domestic laws even after July 2006.

The Pakistan minister had also emphasised the central issue in trade was market access. By maintaining elaborate non-tariff, para tariff measures, and quantitative restrictions and trade distortive manner of implementing of those measures, India was restricting market access to other countries.

She said that a technical sub group is examining barriers maintained by SAARC countries, adding that the issue raised by India can be addressed by this group.

A bilateral Joint Study Group has also been established under the composite dialogue to study and address these issues.

During the bilateral meeting on the sidelines of the SMC, Pakistan's Commerce Minister handed over a copy of the non-paper on tariff, non-tariff and para tariff barriers put in place in trade regime of India to the Indian Commerce Minister for consideration.

The spokeswoman said that Pakistan had fully complied with the SAFTA and initiated the trade liberlisation programme effective July 1, 2006. ''Pakistan considers that its import policy regulations as they relate to import from India fall in the category of non-tariff measures.'' At the Kathmandu meeting, the Commerce Minister expressed Pakistan's readiness to consult with India at any time on this matter along with Pakistan's concerns of India's non-tariff barriers resulting in denial of Pakistan's market access to India.

''Regrettably, India declined Pakistan offer and announced in the SAFTA Ministerial Council meeting to review tariff concessions extended to Pakistan under SAFTA,'' the spokeswoman added.

UNI