India Pakistan agree to amend shipping protocol

ISLAMABAD, Dec 12 Asia Pulse - Shipping officials from India and Pakistan on Thursday agreed to amend a 1975 protocol to permit shipping companies of the two countries to transport cargo to any third country using each other's port facilities and allow third-country vessels to pick up cargo from their ports.
Susheel Kumar, Joint Secretary (Shipping) who led the Indian delegation at the talks with his Pakistani counterparts in Karachi, told the media that the meeting was unanimous to repeal the articles of Pak-India Shipping Protocol 1975 to make it up-to-date with the current needs of regional and international markets.
"We want to open ourselves for third flag carriers," which would bring more business to both the countries, he said.
Experts meeting would finalise the contents of the revised protocol/agreement which would be formally signed by the two governments after approval by their respective cabinets, Kumar said.
The existing Shipping Protocol only permits the Indian and Pakistani vessels to carry point-to-point cargo to each other's ports and bars the third-country vessels to pick up cargo from their ports.
The amendment was contemplated as the trade between the two countries was growing in view of the current peace process between them.

Arrangements to enforce SAFTA complete

ISLAMABAD (Dec 06): The Committee of Experts (COE) from seven member countries of the South Asia Association for Regional Cooperation (SAARC) has finalized all arrangements for enforcing the South Asia Free Trade Area (SAFTA) agreement on January 1, 2006. The COE meeting held at Kathmandu from Nov 28 to Dec 4 agreed on Rules of Origin, Negative List, Revenue Compensation for Least Developed Countries for enforcement of the much-awaited SAFTA agreement on the due date for promotion of enhanced trade among the seven member states, an official told the Daily Times on Monday.

The meeting agreed that the negative list of the member states under SAFTA would be retained with less than 20% of the total tariff lines of the member countries. The member states of SAARC would maintain negative lists of the items on which they would not allow tariff concession to other member countries for protection of local industries and trade under SAFTA. Pakistan will maintain a negative list of about 1,310 items and India is expected to fix it to 927 items. However, the other member states of SAARC will also maintain negative list according to their national needs. The items not included in the negative list would be allowed for import and export among the member states on reduced tariff with effect from Jan 1. The tariff concession would be allowed on the basis of Rules of Origin agreed at the Kathmandu meeting, according to a formula that at least 40% value addition, separate tariff heading and packing would be necessary to claim the tariff concession under the Rules of Origin formula agreed among the member states.

The member states would be able to deny the tariff concession on any tradable item on the basis of minimum value addition of less than 40% by giving solid proof. The official said the issue of Revenue Compensation to the Least Developed Countries (LDCs), Bangladesh, Nepal, Bhutan and Maldives, was also finalized successfully at Kathmandu. At the COE meeting it was decided that the developed countries of SAARC, Pakistan, India and Sri Lanka, would compensate revenue loss of the LDCs to the extent of customs duty only. The LDCs were demanding earlier that the revenue loss of surcharges and fees charged at the time of imports in their countries also be compensated along with the customs duty by liberalization of trade under the SAFTA agreement. The SAFTA agreement shall come into force on January 1, 2006 and the member states shall reduce their tariffs through the Trade Liberalization Programme that will be implemented in two phases. In the first phase, Pakistan and India will reduce tariffs up to five percent within seven years, that is, by 2013, Sri Lanka within eight years, that is, by 2016 and the four LDCs of SAARC by 2016. Pakistan, India and Sri Lanka, however, will complete their Trade Liberalization Programme for the four LDCs within three years, that is, up to 2009. At the final stage till 2015, all the contracting states of SAFTA will ensure free trade area for one another for their economic development and reduction in poverty. Under the SAFTA arrangements, each member state shall maintain two sensitive lists, one for the developed countries of SAARC and the other for the LDCs of SAARC. Daily Times