2012 policy being followed in trade with India: minister

Says only TFAs beneficial to Pakistan to be signed

ISLAMABAD: While formally announcing Trade Facilitation Agreement (TFA) becoming effective in Pakistan, Federal Minister for Commerce Khurram Dastgir Khan said that no trade agreement would be accepted which possessed clauses against interest of the country.

Flanked by other top officials, the minister said that there was no change in existing trade regime with India. He said that the policy of 2012 was being followed in trade with India. “Pakistan ratified the TFA in October 2015 which has now come in to force since 22nd February 2017, after two-thirds members (110) of the WTO ratified the agreement,” Khurram Dastgir Khan said in a news briefing here on Wednesday. 

He said that Afghanistan had demanded access to its trucks through Wagha border but keeping in view volatile security situation such demand did not seem feasible.

“The CPEC and other initiatives are aiming at increasing trade facilitation at borders,” he said and added that the government was considering opening up of trade routes at Torkham and Chaman by enhancing security arrangements,” he added.

When asked reasons for deadlock for striking revised Free Trade Agreement (FTA) with China and fresh Afghan Transit Trade (ATT) with Afghanistan, the minister said that certain logjam created stumbling block in the way of revised FTA with China as the government led by PM Nawaz Sharif decided in principle that without removing imbalance in favour of any country no trade agreement would be struck with anyone. “It is the vision of the PM that no agreement would be signed against trader interest of Pakistan” he added.

To another query about widening trade deficit, the minister said that the exports witnessed slight increase in last few months but the policy of overall increasing trade dependent upon various stakeholders. 

Regarding commitments related to TFA, he said that it could be categorised into three steps including Category-A: already in place/immediately enforceable, Category-B to be notified immediately and implemented after a transition period and Category-C: commitments requiring technical assistance by donors.

Pakistan has already notified its Cat-A commitments-measures that are implementable immediately. Ministry of Commerce and FBR after detailed deliberations have drafted Category B and C measures very carefully.

At various WTO forums it had been pointed by member countries that vast amount “red tape” in moving goods across borders, poses a burden on importer and exporters particularly small and medium-sized enterprises. To address this, WTO members concluded negotiations on a Trade Facilitation Agreement (TFA) in 2013 at Bali Ministerial Conference.