Shri Kamal Nath, Union Minister of Commerce and Industry, has called for a review of negative lists to expand trade in goods and enlarging the scope for further trade cooperation among SAARC countries. India has unilaterally decided to reduce its negative list with reference to the Least developed Countries (LDCs) of SAARC from seven hundred and forty four to around five hundred and the necessary notification to this effect would be revised within a few months. This was stated by Shri Kamal Nath while addressing the Third SAFTA Ministerial Council meeting here today. He said: “in keeping with our commitments, we have already notified the advancement of the trade liberalisation programme in respect to LDCs by one year and with effect from 1st January 2008, the import duty on all items other than those in the negative list has been reduced to zero”. The Meeting was attended by Dr. Sheel Kant Sharma, Secretary General of SAARC; Shri G.K. Pillai, Commerce Secretary; and representatives from the SAARC region.
Speaking on the occasion, Shri Kamal Nath emphasised that the SAARC region is broadly characterised by more or less similar developmental levels of member countries and the biggest challenge before us is the pursuit of economic development with inclusive growth. He said that SAFTA is the first major step towards economic cooperation and integration within the region. “We all appreciate that the agreement is only the initial step and requires a continuous effort by all of us to improve and smoothen its implementation”, he added. While drawing the attention of the participants, Shri Kamal Nath said that the regional study on Trade in Services has been completed, which would give government an opportunity for an effective services agreement amongst
SAARC countries.
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As regards for upgradation of global supply chain, he said that it would be natural for us to adopt technical standards in accordance with global benchmarks. “In India, we are trying to see that this transformation is least painful both for the producers within the country and those connected with our supply chain outside the country’.
“Various SAARC mechanisms have focussed on developing specific short, medium and long term cooperation projects to deliver direct benefits to the people. Operationalisation of the SAARC Development Fund and full implementation of SAFTA would pave the way for this development. The South Asian University and the SAARC Food Bank can also bring benefits to South Asia”, the Minister said.
Recognizing the importance of Trade in Services in the region, the Meeting directed Research and Information System for Developing Countries (RIS) to draft a SAARC Framework Agreement on Trade in Services (SAFAS) under SAFTA Agreement. The Multilateral Meeting directed the establishment by 30th June 2008 of an Expert Group to negotiate the Framework Agreement on Trade in Services. The 13th and 14th SAARC Summits had directed the ‘finalization of an Agreement in the services sector at the earliest’. Member Countries also commended RIS for preparing the ‘Regional Study on Potential of Trade in Services under SAFTA’.
The Meeting appreciated the good work being done by the SAFTA sub-group on Non-Tariff Measures and recommended that the future meetings of the sub-group may take place on the sidelines of SAFTA Committee of Experts (SCOE) for better co-ordination. It was also decided to revise its Terms of Reference to avoid duplication with other SAARC mechanisms.
The Meeting finalized the Draft Protocol for implementation of SAFTA Agreement by the Islamic Republic of Afghanistan thereby paving the way for formal entry of Afghanistan in SAFTA. The Meeting recommended that Afghanistan would be treated at par with Maldives as far as Mechanism for Compensation of Revenue Loss (MCRL) under SAFTA is concerned.
The Meeting welcomed the offer of Maldives to host the Fourth Meeting of SAFTA Committee of Experts and the SAFTA Ministerial Council. |
