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Pakistan to grant India MFN status before October

Discussion in 'World Economy' started by Hembo, Jun 7, 2011.

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  1. Hembo

    Hembo OLD MOD STAR MEMBER

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    Pakistan to grant India MFN status before October

    Bilateral trade between India and Pakistan has the potential to increase three-fold within the next three years with the grant of most-favoured nation (MFN) status to India even as the Pakistani industry is hopeful of an Early Harvest Scheme (EHS) with India.

    Trade between India and Pakistan reached $1.85 billion in 2010-11, compared to $3 billion with Sri Lanka. Hence, grant of the MFN status by Pakistan to India would result in trading of more items between both the countries.

    “Pakistan would give MFN status to India before October and both sides are working towards creating only one negative list unlike now for businessmen of both countries to have a greater access to each other’s markets,â€￾ S M Muneer, president, India-Pakistan Chambers of Commerce and Industry, told Business Standard.

    According to the World Trade Organization (WTO) rules, it is the fundamental right of a country to get MFN status from another member country. Grant of the MFN status by Pakistan would expand the number of products to be traded in a positive list of commodities that are exported by India.

    Muneer, who was invited by the Federation of Indian Chambers of Commerce and Industry to visit India, also said the Pakistani industry was seeking to establish EHS with India by opening up more land routes for trade to take place.

    “We want India to open up more land routes beside the Wagah-Attari border. We want them to open up the Munabao-Khokrapar route also so that more and more items can be traded and items can be transported with less cost,â€￾ he added.

    At present, there are 1,938 items that are there on the positive list. Out of these, 190 tariff lines are allowed through the Wagah border, while the rest are being sent through the Mumbai port.

    Muneer also highlighted some of the significant non-tariff barriers (NTBs) that adversely impact the businessmen of both sides such as restrictive visa, complex inspection procedures, poor air connectivity and land infrastructure, among others.

    Pakistan to grant India MFN status before October
     
  2. Mr.Ryu

    Mr.Ryu Captain SENIOR MEMBER

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    Good for us both but giving most-favored nation status is apart what we need is real deal to bring terrorist to book which is more urgent, If we do so all this will come automatically behind.
     
  3. Hembo

    Hembo OLD MOD STAR MEMBER

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    Pak agrees to grant India MFN status: Fehmida


    New Delhi—Dr Fehmida Mirza, Speaker National Assembly on Monday apprised her Indian counterpart that Pakistan has agreed to grant India the MFN status and hoped that both countries will share their experiences in various fields to meet the challenges by exploiting the untapped potential.

    Dr Fehmida Mirza stressed the need for enhanced parliamentary interaction between Pakistan and India for building bridges of understanding and friendship between both the countries.

    She was talking to Ms. Meira Kumar, Speaker Lok Sabha in a meeting held in Sansad Bhavan.

    Referring to the ongoing dialogue process between the two countries, Dr. Fehmida Mirza reiterated that the recently held Secretaries’ level meetings have yielded encouraging results. She said that dialogue is the only way forward in improving bilateral ties. She also emphasized that though terrorism and violence is a common threat to all of us. However, Pakistan has suffered the most as more than 30,000 of its Civilian population and 5000 personnel of Law enforcement agencies lost their lives as a result of terrorism.

    Referring to the Mumbai incident, Dr Fehmida Mirza stressed that Pakistan too has its concerns on Samjhuhta Express incident. She believed that frequent parliamentary interactions will be helpful in addressing various issues between the two countries.

    The Speaker National Assembly of Pakistan extended invitation to Meira Kumar, Speaker Lok Sabha to attend the 7th Women Speakers’ Conference to be held in Pakistan 15-17 November, this year.

    While welcoming Dr Fehmida Mirza, Meira Kumar, said relationships between Pakistan and India are not confined to politics and trade alone, rather, these are also based on emotional and cultural grounds.

    She informed her Pakistani counterpart that India had also formed India-Pakistan Parliamentary Friendship Group following Pakistan’s pattern. She was confident that interaction between parliamentarians of both the countries would yield results.

    Later Speaker National Assembly also held separate meetings with Speakers of other SAARC countries including Sri Lanka, Bangladesh and Afghanistan.

    Dr Fehmida Mirza Monday chaired the fifth Conference of the SAARC Speakers and Parliamentarians Association in New Delhi.

    The theme of the Conference is “Sustainable Development in SAARC Countries – The way forward”. Speakers from member countries continued to deliberate upon the theme during the session.

    In her opening remarks, Dr. Fehmida, Speaker National Assembly underlined the role of parliaments and parliamentarians of SAARC Region to make the economic and social development sustainable so that common people in member countries of SAARC have access to basic amenities of life specially in health and education sectors. This will lay foundation for the long-term development of the region

    Speaking during the session, Ms. Shahnaz Wazir Ali, MNA emphasized that “we in the SAARC region can share our successful experiences with each other that will ultimately make the lives of the masses better”. She narrated a number of areas where Pakistan has successfully experimented various schemes for the welfare and betterment of its common people

    Ms. Kashmala Tariq, MNA during her speech emphasized that sprit of cooperation was at the roots of formation of SAARC. “Member states, therefore, must uphold held this spirit at all levels”.

    The next Conference will be held in Islamabad next year. —Agencies
     
  4. JanjaWeed

    JanjaWeed Captain SENIOR MEMBER

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    lol.. why now? will India soften it's stand at WTO & allow EU give that trade concession to Pakistan? let's watch this space!!
     
  5. aakash

    aakash 2nd Lieutant FULL MEMBER

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    Good move! :D

    It seems like both nations have realised now that they are not going to achieve anything by going the way they have been going till now.

    And I think people to people contact is strong as well but diplomatic relations spoils everything.
     
  6. JanjaWeed

    JanjaWeed Captain SENIOR MEMBER

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    people to people contacts were good in the past as well even when diplomats failed to deliver. It's events like 26/11 which spoils the sport. Trade or diplomatic efforts will not bring the people together unless there is a realization that terror will not pay in the long run, not just by the governments but also by commen public.
     
  7. Kronus

    Kronus Lieutenant SENIOR MEMBER

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    Does MFN cover the extradition of militants???
    For me MFN will only matter in the case of Handing Over the Militants & other accused which India has demanded!
     
  8. JanjaWeed

    JanjaWeed Captain SENIOR MEMBER

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    MFN only covers trade related activities my friend! unless there is a radical change in the thought process within pakistani establishment, above things will never change!
     
  9. Enigma

    Enigma FULL MEMBER

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    we have already killed their concessions from EU, which was unfair by all means any ways.
    .
    . btw when a beggar starts to praise his donor then think that ki kalee dal may kuch pila hai, or jab geedad ki maut ati hai toh woh shehar ki taraf bhagta hai :D
     
    Last edited: Jul 13, 2011
  10. Kronus

    Kronus Lieutenant SENIOR MEMBER

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    I know that. I was only pointing out that we needed a MFN status in that as well. I guess I missed to put up a smiley there!:sarcastic:
     
  11. lucifer

    lucifer Lieutenant SENIOR MEMBER

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    ISLAMABAD — Efforts by longtime nuclear-armed foes Pakistan and India to liberalize their restrictive trade regimes have sent jitters across some Pakistani sectors which feel threatened by free trade with the neighboring economic powerhouse.

    Pakistan's Commerce Ministry is in the process of increasing the number of goods India can export to its neighbor. But some industries like pharmaceuticals feel cheap Indian goods will ravage local producers.

    "There will be a sudden downfall," said Riaz Hussain, General Secretary of the Pakistan Pharmaceutical Manufacturers' Association. He says the local industry is worth $1.64 billion and produces 90 percent of the drugs for the domestic market.

    "They will flood the market ... We feel that all finished products should be on the negative list," he said referring to a list of banned Indian goods.

    The textile industry, which accounts for nearly 60 percent of Pakistan's exports, is also worried.

    "We are particularly concerned about synthetic fiber and synthetic made-ups that should be on the negative list," said Mohsin Aziz, chairman of the All Pakistan Textile Manufacturers' Association.

    "We are with the government on this but we can't open everything," said Abdul Waheed Khan, Director General of the Karachi-based Pakistan Automotive Manufacturers' Association.

    "The system should not be put into a sudden shock."

    But in addition to some domestic opposition in Pakistan, there are other concerns. While India granted Pakistan Most Favoured Nation status in 1996, Pakistan has yet to reciprocate.

    Pakistan Foreign Minister Hina Rabbani Khar said recently a decision had been taken "in principle" to accord MFN status to India, but officials say that should go hand in hand with New Delhi removing non-trade barriers against Pakistan goods.

    Pakistan has long complained that Indian quality standards and customs procedures have hindered the flow of Pakistani goods into India.

    Of the $1.4 billion in trade recorded in 2009/10, Indian exports to Pakistan stood at $1.2 billion while Pakistan exports totaled $268 million, according to official data.

    And the economic disparity is stark. Pakistan reported 2.4 percent growth in gross domestic product in fiscal year 2010-11 while India reported 8.5 percent growth.

    Since the 1960s, when Pakistan was an Asian tiger economy and India a basket case, India's economy has swelled to $1.06 trillion, more than eight times the size of Pakistan's $207 billion.

    POLITICAL ISSUES

    Trade has long been tied to political issues between the hostile neighbors, which have fought three wars since independence from Britain in 1947, two over Kashmir, the disputed Himalayan region at the heart of the their decades-old enmity.

    Trade ties were severed after the second war in 1965 and have yet to recover fully.

    But despite the challenges, the two now appear more keen to remove barriers to trade and the two countries' commerce ministries say trade could easily triple in three years.

    India last month dropped opposition to EU tariff cuts offered to Pakistan on its textile goods in the wake of 2010's devastating floods, a move hailed by Islamabad as a big confidence-building measure by New Delhi.

    Both sides are close on an accord for a more liberal business visa regime following an agreement to boost trade through at the Atari-Wagah border crossing by increasing trading hours and speeding cargo clearance.

    Pakistan currently allows only 1,946 items from India, including things like cosmetics and spices.

    But most aren't traded directly. Only 109 goods are allowed through Atari-Wagah, while the bulk is channeled via third countries such as Dubai and Singapore, slowing deliveries and increasing costs.

    Restrictions and freight cost have encouraged smuggling in items like tyres and machine parts across their border and also through Afghanistan. Analysts estimate the smuggling at up to $2 billion, more than the legal trade.

    A new list of items being prepared by the Pakistani Commerce Ministry would replace the current list of tradable items with a much smaller list of banned items. The list is still being negotiated.

    FLURRY OF ACTIVITY

    All this follows a flurry of trade meetings this year, including the first trip by a Pakistani commerce minister to India in more than three decades. Their commerce sectaries will meet next month, likely in New Delhi, for their second meeting this year.

    Hopes are that progress in trade ties would help bolster a fragile peace process, which the two resumed in February. India broke off talks after the November 2008 attack on Mumbai by Pakistan-based militants who killed 166 people.

    The United States has also been pushing Pakistan and India to improve relations, including trade ties, which it sees as vital for a stable South Asian region and helping a troubled transition in Afghanistan as foreign troops begin to withdraw.

    "There is an express wish today to deepen the economic engagement, which will be both rewarding for Pakistan and India," Indian Trade Minister Anand Sharma told Reuters on Tuesday.

    Some Pakistani businessman could not agree more.

    "The poor masses of both the countries will get great benefit from the free trade between India and Pakistan," said S.M. Muneer, the president of the Karachi-based India-Pakistan Chamber of Commerce and Industry.
     
  12. jack

    jack FULL MEMBER

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    Pakistan grants India Most Favoured Nation trade status

    ISLAMABAD: Pakistan's cabinet unanimously decided on Wednesday to grant India Most Favoured Nation status to liberalise trade between the two South Asian countries, Pakistan's information minister said, a move that could improve ties between the rivals.

    "Today after an extensive briefing by the commerce secretary, the cabinet unanimously decided to grant India Most Favoured Nation status," the minister, Firdos Ashiq Awan, told a news conference.

    Link:Pakistan grants India Most Favoured Nation trade status - The Times of India
     
  13. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    India had given this MFN status to Pakistan some time before,

    i hope we can get our hands on the natural reserves of Pakistan,
    and we can provide them with excellent quality of Finished Goods.

    Good for both :biggthumpup:
     
  14. Praveen Taneja

    Praveen Taneja 2nd Lieutant FULL MEMBER

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    Sab phati ka sauda hai baaki sab ne udhar dene se mana kar diya hoga to aa gaye le lo MFN:big_boss:
     
  15. Tantrika

    Tantrika 2nd Lieutant FULL MEMBER

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    We expecting more mumbai type attack and Pakistan can freely send terrorists like David Headly in business visa. After a blast in xingjing , china tightens the security and it seeks military base in Pakistan to check the cross border terrorism but wat v r dng?. I am really amazing a country can't recognise its enemy even after 64 yrs tell me onething is it impossible to survive without Pakistan business trade. Last time v send bus ??? wat happened everybody knws. Indian foreign policy quite confusing , go hell India.
     
    Last edited: Nov 3, 2011
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