For once India and Pakistan are jointly working towards a common goal and pulling each other down.
India, Pak to jointly patent basmati, open bank branches
Islamabad, Mar 29: India and Pakistan today agreed to strengthen road and rail transport services, speed up opening of their bank branches in each other`s country and constitute a working group to jointly patent basmati rice.
Separately, Pakistan said it would consider enlarging the positive list of import items from India to over 1050 from the present 773 products.
A joint statement issued at the end of three day of Commerce Secretary level talks between the two countries here said “both sides welcomed the ratification of Safta agreement by all Saarc member countries and expressed the confidence that it would enhance regional trade”.
Indian officials consider the reference to Safta in the joint statement significant as it indicated Pakistan`s intentions to apply Safta to India despite public postures to the contrary by its Commerce Minister Humayun Akthar Khan linking the trade process to resolution of political disputes including Kashmir.
Commerce Secretary S N Menon, who led a 15 member delegation at the talks, said detailed discussions on Safta implementation would be held at the Saarc commerce ministers conference in Dhaka next month.
Terming the talks as “significant,” Menon said Pakistan has for the first time deployed a number of technical specialists in the delegation to discuss improvement of trade relations.
Besides both sides agreed on a road map to reach Mutual Recognition Agreement (MRA) for products of their export interest, including garments, which would go a long way in redressing Pakistan`s complaints about non tariff barriers.
Heralding a change in Pakistan`s stand that it would pursue its own case for patenting basmati rice, the joint statement said, “Pakistan and India would constitute a working group to discuss the issues relating to joint registration of Basmati rice SGI”.
In line with the decision taken in 2004 to open bank branches, the Central Banks of India and Pakistan would process applications by banks expeditiously, the joint statement said.
Several banks from both sides have evinced interest, officials said.
In order to facilitate import of tea from India, both sides decided to encourage delegations of importers/exporters of tea to visit respective countries. “It was also felt that after the new shipping agreement comes into effect, import of tea from India would be facilitated further”, the statement said.
Indian tea has been making slow foray into Pakistan considered as the largest tea importer in the world. The market is at present dominated by Kenya and Sri Lanka.
The statement said it was “emphasised” that the new shipping agreement would be signed in the near future at New Delhi.
Both countries have already reached an understanding to amend the agreement to enable third country vessels to carry goods to each other ports. The Pakistan cabinet has already ratified the agreement.
On increasing flight services between the two countries, it said “talks on air services agreement would be concluded expeditiously”.
During the recent talks on air services, both the countries considered expanding the air services by permitting private operators.
Pakistan, while offering Islamabad as a new destination in addition to Lahore and Karachi, wanted permission to operate Pakistan International Airlines flights to Kochi, Chennai and Hyderabad in addition to New Delhi and Mumbai.
Both sides also agreed to “identify the problems of transportation of goods by train between India and Pakistan” and officials of the relevant ministries of both sides held a meeting on the sidelines of the talks.
“It was decided that they would continue their dialogue”, the statement said.
Pakistan “noted” the Indian proposal to convene a meeting of the relevant technical level experts at the Attari-Wagah border to draw up proposals to upgrade infrastructure with a view to facilitate trade including transit of cargo to Afghanistan, the statement said.
Indian officials said joint secretary level talks were planned to remove the bottlenecks that prevail on both sides of the border.
It said “Pakistan would consider enlarging the list of importable items from India in consultation with stakeholders and after fulfilling legal and procedural requirements”.
Pakistan, which was given Most Favoured Nation, (MFN) treatment by India, however, trades with India with a positive list of 773. It is currently considering India`s request to expand the list to 1059.
The statement said India will provide detailed proposals for trade in it-enabled medical services and export insurance cooperation for consideration by Pakistan.
“It was noted with satisfaction that the laying of optical fibre on the Indian side would be completed in the near future”, it said.
“It was also noted that the initiative on liberalisation of visa regime would be discussed in the relevant segment of the composite dialogue. An MoU on assistance of mutual cooperation in capital markets has been conveyed by Pakistan Secp to their counterpart in India,” the statement said.
It was agreed that India would communicate its response soon", it said noting that talks were held in a “cordial and constructive atmosphere”.