India asks Pakistan to identify 20 products of export-interest

New Delhi, July 31 (UNI) India today asked Pakistan to identify 20 products of interest for export to India, while Pakistan urged India to reduce the gap in bilateral trade, which currently favours India.

The bilateral trade between the two countries has more than doubled in the last two years to 1326.41 million dollars in 2006-07 from 616.05 million dollars in 2004-05. Pakistan exports to India grew to 323.19 million dollars (2006-07) from 94.97 million dollars (2004-05), while India to Pakistan grew to 1,003.22 million dollars (2006-07) from 521.05 million dollars (2004-05).

On the opening day of the fourth round trade talks which got underway here this afternoon, India's Commerce Secretary G K Pillai, in his opening remarks, expressed hope that the country would soon get the Most Favoured Nation (MFN) status as Pakistan had clearly indicated this after having ratified South Asia Free Trade Agreement (SAFTA).

He called for both countries to improve infrastructure at the designated border crossing points on the rail and road networks so as to meet the needs of the business community of the two countries.

Pakistan Commerce Secretary Syde Asif Shah reminded his Indian counterpart that his country had enlarged the positive list of importable goods into Pakistan from India by adding 302 new items after the end of third round of talks. He said Pakistan's global imports of these products is over two billion dollars, while India's share in the last six months constituted about 30 million dollars.

Mr Shah also underlined the need to operationalise the bilateral protocol of shipping service between Pakistan and India, adding it had been renegotiated and signed between the two countries on the conclusion of the third round of talks on December 14, 2006.

This protocol, he added, will positively impact bilateral trade as it had removed obstacles in the movement of goods by sea. The new protocol was signed after 31 years.

Mr Pillai said India has set up a task force to look into non-tariff barriers, such as lack of infrastructure or capacities, and hope to remove most of them shortly.

The Indian Commerce Secretary said it made economic sense that Pakistan, the world's third largest consumer of tea, should buy it from India, the world's largest producer.

If tea is traded across the border through land route, it would reduce transaction costs and create economic advantages for both the countries. Similarly, India can import cement from Pakistan to meet its growing demand.

Mr Pillai sought Pakistan's assistance for joint registeration of Basmati as geographical indication (GI) by the two countries to derive the advantage in international market.

The two-day talks will be followed by Joint Study Group of the two nations on August 3, as part of the composite dialogue.

UNI