India, Pakistan express readiness to help enhance Nepal 's export
India's Commerce Minister Kamal Nath has said the Indian government is ready to extend all support to increase Nepal's export to India, the largest market of the South Asian subcontinent and a growing global economic giant.
Addressing a press conference in Kathmandu on Monday, the Indian Commerce Minister, who had arrived here to participate in the SAFTA Ministerial Council (SMC), informed that the Indian government was considering waiving four percent additional duty levied on Nepalese readymade garment to India.
India has so far waived 4 percent additional duties on 11 Nepali products exported to India.
Stating that the export from Nepal to India had increased significantly since 1996, the Indian commerce minister said that India was ready to extend all necessary help to bridge the widening trade deficit between Nepal and India.
Of the total export from Nepal, export to India had grown to 70 percent from only 20 percent in 1996, he said.
He also said that the trade treaty between Nepal and India would also help expand bi-lateral trade between Nepal and India.
The Indian minister said that physical, economic and people to people connectivity among the member countries would help meet the goals of SAARC and other regional agreements.
He informed that the SAFTA SMC meeting agreed that India and Pakistan would hold bi-lateral discussion to resolve the issues between both the countries for effective implementation of SAFTA agreement and added that the next ministerial meeting of the SMC would on about the development on talks.
According to sources, the decision was taken after India raised strong concerns at Pakistan’s attempt at selective implementation of SAFTA.
Both the countries failed to reach consensus on the issue of non-tariff barriers implementation of SAFTA agreement.
The Indian commerce minister said that Pakistan had provided it a positive list comprising items in which it could trade. But, the SAFTA agreement entails provisions of only a negative list or a list of sensitive items, which are subject to maximum ceiling to be mutually agreed among contracting states.
He also urged the member countries of SAARC to benefit from the market access of the fastest growing Indian economy.
Meanwhile, at a separate press conference, Pakistani commerce minister Humayun Akhtar Khan said Pakistan was interested to sign free trade agreement with Nepal.
He further said Pakistan was ready to provide free access to Nepali goods.
He also informed that the Pakistani International Airlines reduced cargo charge aiming to increase export of Nepalese goods to Pakistan. Pakistan, he said, is in favour of finding ways to boost bi-lateral trade.
The volume of trade between Nepal and Pakistan stood at US$ 8 million last fiscal year.
SAFTA envisions zero duty on trade by 2012, following a series of annual cuts. Nepal, Bhutan, Bangladesh and the Maldives, which are regarded as the least developed countries in the regional bloc, will get an additional three years to acquire zero duty status. nepalnews.com pb Feb 26 07
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