Consensus on downsizing negative list of products
Thursday, 27 September 2007
FE Report
Trade officials from the BIMSTEC bloc Wednesday arrived at a decision to downsize the negative list of products to 15 per cent from 25 per cent of the total tariff line as they ended a three-day negotiation on the regional free trade pact in the city.
"There's a consensus that the negative list of goods should be 15 per cent of the total tariff line without the principle of reciprocity," Manel de Silva, who led the trade negotiating committee (TNC) meeting, said.
Speaking at a press briefing at the end of the meeting, the Sri Lankan negotiator, however, noted that the decision needs to be vetted by policymakers of the member countries of the regional block. The Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (BIMSTEC) groups Bangladesh, Myanmar, India, Sri Lanka, Thailand, Nepal and Bhutan.
"It's not confirmed. We've to take the decision back to our capitals. The less-developed economies may get special treatment and lesser number of products on the negative list," she pointed out.
The TNC meeting also agreed, in principle, to set the value addition criteria at 30 per cent for poorer nations while 35 per cent in case of developing countries, says a TNC report, a copy of which has been made available to the FE.
"Bangladesh, Nepal and Sri Lanka had difficulties in reducing the size of the negative list to 15 per cent, while India stated that it had no mandate to accept CTSH (customs tariff sub-heading) in rules of origin," the report maintained.
Manel said the ongoing political unrest in Myanmar, a member of the BIMSTEC, would not have a negative impact on clinching the free trade deal.
"Myanmar has sent a full-fledged delegation to the meeting. It reflects a commitment on the part of the Myanmar government," she pointed out.
The TNC leader noted it still requires agreement on a few unresolved issues, notably transit and value addition criteria.
But Manel said she was optimistic about ironing out the pending issues that still stand in the way of faster conclusion of free trade talks.
"We're extremely hopeful of resolving the outstanding issues in the next round of talks in India," she added.
She said the final negotiations would be held in India ahead of the BIMSTEC summit, slated for February 2008.
"If the next round of negotiations is successful, we'll sign the free trade pact at the summit meeting," she said.
Trade officials from the BIMSTEC bloc Wednesday arrived at a decision to downsize the negative list of products to 15 per cent from 25 per cent of the total tariff line as they ended a three-day negotiation on the regional free trade pact in the city.
"There's a consensus that the negative list of goods should be 15 per cent of the total tariff line without the principle of reciprocity," Manel de Silva, who led the trade negotiating committee (TNC) meeting, said.
Speaking at a press briefing at the end of the meeting, the Sri Lankan negotiator, however, noted that the decision needs to be vetted by policymakers of the member countries of the regional block. The Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (BIMSTEC) groups Bangladesh, Myanmar, India, Sri Lanka, Thailand, Nepal and Bhutan.
"It's not confirmed. We've to take the decision back to our capitals. The less-developed economies may get special treatment and lesser number of products on the negative list," she pointed out.
The TNC meeting also agreed, in principle, to set the value addition criteria at 30 per cent for poorer nations while 35 per cent in case of developing countries, says a TNC report, a copy of which has been made available to the FE.
"Bangladesh, Nepal and Sri Lanka had difficulties in reducing the size of the negative list to 15 per cent, while India stated that it had no mandate to accept CTSH (customs tariff sub-heading) in rules of origin," the report maintained.
Manel said the ongoing political unrest in Myanmar, a member of the BIMSTEC, would not have a negative impact on clinching the free trade deal.
"Myanmar has sent a full-fledged delegation to the meeting. It reflects a commitment on the part of the Myanmar government," she pointed out.
The TNC leader noted it still requires agreement on a few unresolved issues, notably transit and value addition criteria.
But Manel said she was optimistic about ironing out the pending issues that still stand in the way of faster conclusion of free trade talks.
"We're extremely hopeful of resolving the outstanding issues in the next round of talks in India," she added.
She said the final negotiations would be held in India ahead of the BIMSTEC summit, slated for February 2008.
"If the next round of negotiations is successful, we'll sign the free trade pact at the summit meeting," she said.