Pak wants lower tariffs, flexible on positive list

Pakistan is flexible on increasing the number of items in the positive list of imports from India. In return, it wants New Delhi to reduce specific duties on textile goods and non-tariff barriers like stringent standard conditions, which are restricting its imports.

Citing a recent World Bank study on tariffs in South-Asia on agriculture, livestock and processed foods, sources close to the Pakistan government told Business Standard that tariffs imposed by India on several items were far higher than that imposed by Pakistan.

"For instance, in case of powdered milk, the duty in India and Pakistan are 60 per cent and 20 per cent, respectively. The duty on tea is 100 per cent and 25 per cent in India and Pakistan, respectively. Similarly on pulses, the duty in India is 30 per cent while the same in Pakistan is 5 per cent," they said.

Sources said Indian consumers could gain access to lower-priced and better-quality goods in the mid-level segment in sectors like electric fans, surgical goods, footwear, woollen garments, cotton fabrics, ceramics and confectionery items, if India lowered its import duty on these items and removed non-tariff barriers.

The sources pointed out that Pakistan had recently included three cancer vaccines in the list at the request of a delegation from FICCI.

"The list can be expanded further as and when there is a representation from the industry," the sources said. Commerce secretaries of the two countries are slated to meet on August 9-10 to discuss measures to boost bilateral trade as part of the composite dialogue.

But, on the issue of most favoured nation, sources said Pakistan maintained that the purpose of granting MFN was equal treatment.

"Even though only 770 items are allowed from India, these exports are extended the same treatment as given to exports from the other countries", sources said.

However, Pakistani goods have to subscribe to stringent standards prepared by the Bureau of Indian standards," sources said. Sources pointed out that it was important for the two countries to maintain progress as uncertainty in improving bilateral relations was deterring the business community on both sides from undertaking long term commitments.