India, Pak war of nerves over Safta

NEW DELHI: The tussle between Pakistan and India over the implementation of Safta has become more intense. Not just that Pakistan is unwilling to give tariff concessions on products beyond the 773 items on the bilateral positive list, it has also come up with a grouse against India. Islamabad has alleged that India is providing tariff concessions to Pakistan and other non-LDCs on fewer items than the LDC members.

India, however, is not taking the allegation seriously. Speaking to ET, official sources said that it is clearly mentioned in the Safta agreementthat favourable treatment should be given to LDC members. Other members, too, (except Pakistan) have given more concessions to LDCs..

“They have made the allegation just to counter the charge we have levelled against them of discrimination. It doesn’t amount to anything,” an official said. This, however, proves that the bitterness between Pakistan and India was worsening. This could affect the future of Safta.

India complained to the Saarc foreign minister’s council earlier this month about Pakistan’s refusal to allow concessions under Safta on all products promised to other members. While Pakistan has offered concessions on more than 4,000 items to other Safta members and kept just 1,183 items in the negative or sensitive list, it is offering concessions to India on just 773 products on the bilateral positive list. The Saarc foreign minister’s council could not take a decision on the issue and the matter has now been referred to the Saarc commerce minister’s council.

Pakistan’s refusal to implement the Safta agreement has put a question mark on the pact’s future as India and Pakistan are the two biggest countries in the region. The agreement was being looked forward to by all Saarc members, especially the least developed countries.