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- Undeterred by the Pakistan's decision to defer the issue of pruning the negative list for trade with India, Mr. Sharma said he would be discussing the issue of grant of the Most Favoured Nation (MFN) status to India as well the issue of pruning the negative list to give a fillip to trade.
- While officials from both the sides are still at work to put together a “comprehensive package”, indications are the deal this time may have to be limited to agreements on customs cooperation and redressal of trade grievances along with a mutual recognition agreement that will enable a regime with common standards.
- The three MoUs are
- Cooperation and Mutual Assistance in Customs Matters Agreement,
- Bilateral Cooperation Agreement on Mutual Recognition between Pakistan Standard and Quality Control Authority and Bureau of Indian Standards, and
- Agreement on Redressal of Trade Grievances between Pakistan and India.
- Pakistan commerce department had finalized a negative list of 636 items and it is likely to be implemented in three phases starting June 30 and ending by 2012.
- But differences within the cabinet have meant that the Indian delegation led by commerce and industry minister Anand Sharma may return without any substantial gain from the visit, the first bilateral trip by an Indian trade minister.
- Sharma hasn’t given up just yet. He intends to discuss the MFN status and the negative list issue with his Pakistani counterpart
- India indicated that it was ready to put in place a liberal multiple visa regime in place if Pakistan reciprocated on the issue.
- India and Pakistan are holding talks not only to opening up another border trading point at the Wagah Border but also at Mona Bao in Rajasthan.
- Analysts said the political instability in the country had cast its shadow on trade. Analysts said any decision on the MFN issue would have to wait until there was more clarity on the political situation.
- Sections of Pakistan’s domestic industry are worried that Indian goods would swamp the Pakistan market once trade ties return to normal.
