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Thursday, January 19, 2012

Indo-Pak MPs resolve to boost economic ties

* Call for trade-facilitation measures
* Urge evolution of an actionable roadmap to broaden the relationship

Staff Report

ISLAMABAD: Parliamentarians from Pakistan and India expressed their resolve to use the third round of dialogue to enhance trade and economic relations between the two countries.
The two-day dialogue session concluded here on Wednesday, with the two previous constructive parliamentary dialogues held in January 2011 in Islamabad and August 2011 in New Delhi.
Parliamentarians recognised that many broader issues of bilateral relationship between the countries had been discussed during the first and second rounds of dialogue. They decided that this third dialogue should be primarily devoted to trade and economic relations between the countries.
In this context, the catalytic role of parliamentarians to encourage policy makers to take all necessary measures for realising what the commerce ministers had recognised, as “full normalisation of commercial relationship between the two countries, to strengthen bilateral relationship and build the bridges of friendship, trust and understanding – for the mutual benefit of their people and promotion of prosperity in South Asia,” was reiterated.
There was general agreement that strengthening of trade relations must be viewed in the wider context of trade as the engine of growth, its welfare-enhancing multiplier effects which improve overall life quality and confer welfare benefits to both countries.
While bilateral trade during the last three years increased from just over $1.8 billion in 2008-09 to $2.6 billion in 2010-11, the potential was indeed much greater. The commerce ministers had envisaged enhancing bilateral trade from $2.6 billion to $6 billion within three years.
Parliamentarians from both sided urged the implementation of the Memorandum of Understanding (MoU) between India Trade Promotion Organisation and the Trade Development Authority of Pakistan, agreed upon by the commerce ministers.
The parliamentarians asked to evolve an actionable roadmap to broaden the relationship in the context of the plan and objectives set out by both governments.
The parliamentarians of both countries recommended that the current initiatives to complete the transition from the current positive-list approach to a small negative list should be finalised and ratified by end February 2012 and in the second stage, to further phase-out the negative list by end 2012.
Other recommendations included completion of the process to seek preferential trade agreements within the framework of South Asian Free Trade Agreement (SAFTA), and that the Joint Technical Group for improving physical infrastructure should complete its exercise by the end of February 2012.
Participants also called for both governments to undertake appropriate measures for minimising sector-specific barriers as well as foster dialogue between regulatory bodies of both sides.
The participants further called for trade-facilitation measures, harmonisation of customs procedures, an early Investment Protection Treaty, linkages between private sector organisations, enhancing trade in textiles, electronics and information technology, opening bank branches in each other’s countries and cross-border listing of stock indices and financial instruments. A “Comprehensive Economic Framework” for cooperation, improving infrastructure for new air, sea, road and rail routes was also urged with a focus on also encouraging tourism, sports, youth and cultural exchanges.

Courtesy www.dailytimes.com.pk

 

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