India, Pakistan at loggerheads

The implementation of SAFTA has become uncertain as India accused Pakistan of violating SAFTA provision at the SAARC Standing Committee meeting held in the city Monday. The South Asian Free Trade Agreement, which came into force from July 1, faced severe jolt as India accused Pakistan of violating the provision of SAFTA. The SAARC Standing Committee began its two-day deliberation in the city Monday. The standing committee, comprising the foreign secretaries of all SAARC member countries is to finalize the agenda for consideration of the SAARC council of ministers’ meeting scheduled to take place today (Tuesday) afternoon. The SAFTA issue was on the agenda but the Indian side raised the issue and accused Pakistan for violating the provision of SAFTA. The Indian side accused that Pakistan made discrimination while announcing positive list of products that would come under trade liberalization regime. It was told that Pakistan offered tariff concession to only 773 Indian products although it had given tariff concession for more than 4000 items to Bangladesh, Nepal, Bhutan and the Maldives. According to India this is a clear violation of article 23 of the SAFTA agreement which states: “This agreement shall not be signed with reservations, nor will reservations be admitted at the time of notification to the SAARC Secretariat of the completion of formalities”. Pakistan denied to accommodate the Indian accusation and stated that Bangladesh, Nepal, Bhutan and Maldives are least developed countries and they deserve most favored nation treatment. India does not fall under the category of most favored nation treatment. Indian foreign secretary Sham Charan in a press briefing said that if Pakistan does not change its position on SAFTA than the whole SAARC process would be hampered. He said: “SAFTA should be implemented in otiated with all parties living up to the commitment they have solemnly undertaken. This has a bearing on the success of the SAARC process and may affect all other aspects of cooperation among the member countries. Indian foreign secretary hoped that the council of ministers would be able to resolve the issue. When asked whether India would walk out from the SAFTA process if the Pakistan does not change its position, Sham Charan said: “ I am optimistic about the resolution of the SAFTA problem”. Earlier, Bangladesh foreign secretary said that all issues related with the economic cooperation and the implementation of the social charter of the SAARC were discussed in the standing committee meeting.

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