Safta row may cost Pak concessions

NEW DELHI: Commerce and industry minister Kamal Nath has warned Pakistan that it may review concessions given to the country under the South Asian Free Trade Area (Safta) agreement in case of Pakistan’s continued non-compliance with the agreement. The minister clarified that concessions given to other countries will remain.

Participating in the second meeting of the Safta ministerial council in Kathmandu on Monday, Mr Kamal Nath said that there could not be a qualified implementation of Safta by a member-country. While preferential trade through Safta is to be based on a negative list, Pakistan has provided a positive list of 1,075 items in the case of India. All other Saarc members get preferential access to the Pakistani market for more than 4,000 products.

“India will be at liberty to review concessions given to Pakistan under the Safta agreement in case of continued non-compliance with the agreement by Pakistan. However, concessions given to other countries will remain,” the minister said.

Addressing a press conference in the Nepal capital, Mr Kamal Nath said that it was not a matter of disagreement or dispute with Pakistan but only a question of Pakistan’s compliance with and implementation of its obligations under the agreement and pointed out that this approach fractures the solidarity of the economic engagement among Safta countries.

He also pointed out that implementation of Safta would benefit Pakistan’s economy and expressed hopes that the country would recognise this.Safta, a free trade agreement between the Saarc countries which includes India and Pakistan, came into force on January 1, 2006. Phased tariff liberalisation programme (TLP) of Safta covering all tariff lines except those kept in the sensitive list has been implemented by members from July 1, 2006.