On agenda: Pak, Bangla trade ties

Panel to discuss lowering duties, opening new trade routes, easing import norms.

A crucial meeting of the Trade and Economic Relations Committee headed by Prime Minister Manmohan Singh has been convened next week to discuss measures to further liberalise trade with Pakistan and Bangladesh.

On the agenda is a proposal to reduce specific duties on textile items to provide more market access to Pakistan and Bangladesh, opening up of more land routes for trade and easing import norms like certification requirements for select products.

Lowering duties in the textiles sector has been a sticking point for both Pakistan and Bangladesh as both are competitive in the sector. The Prime Minister's Office has asked the Commerce Ministry to make a presentation on the issue to the TERC.

"There is a case for India to open up its market to Bangladesh and Pakistan since the balance of trade is tilted sharply in favour of India," an official said.

The committee's meeting coincides with a Indo-Pak bilateral meeting at the level of the commerce secretaries to step up economic and commercial cooperation. India is expected to pitch for allowing diesel exports and increasing air and shipping links during the two-day talks beginning Tuesday.

Making a case for allowing diesel export, the Petroleum Ministry has said this had a market access potential of Rs 28,000 crore. The ministry has mandated the Indian Oil Corporation to make a presentation on the issue.

Official sources said India would also ask Pakistan to recognise Attari and Wagah as permanent land routes for trade.

New Delhi will also ask Pakistan to maintain a negative list of restricted items rather than having a positive list of 770 items. Stepping up cooperation in the shipping and the airlines sector is also expected to figure prominently in the discussions.

In addition to the bilateral meeting with Pakistan, the eighth meeting of the India-Indonesia Joint Business Council would be held in the capital next week, along with the meetings of the Joint Working Groups of Mauritius, Korea and Malaysia.

BUSY WEEK FOR BILATERALS

• India-Pakistan commerce secretary level talks
• 8th meeting of the India-Indonesia joint business council
• Joint Working Group for a comprehensive economic partnership agreement with Mauritius
• Joint study group meeting between India-Korea
• Joint study group meeting between India-Malaysia