Dhaka in talks with stakeholders to reduce sensitive list of products
Saturday, 10 May 2014
FE Report
Dhaka is negotiating with the stakeholders to reduce their sensitive list of products under the South Asian Free Trade Area (SAFTA) accord, an official said.
A senior official of the ministry of commerce (MoC) said various initiatives were taken in this regard for reducing the number of goods on the sensitive lists in phase-3 under SAFTA.
"Now we are also consulting and holding discussion with the stakeholders and the member countries of the South Asian Association for Regional Cooperation (SAARC) about the products which can be taken out of the list of sensitive products," a senior commerce ministry official said.
SAARC countries have put a total of 6,768 and 5,148 goods for Non-Least Developing Countries (NLDCs) and Least Developed Countries (LDCs), respectively, inside the SAARC region under the sensitive lists, according to the MoC.
Bangladesh has now 987 products on the sensitive list for the Least Developed Countries (LDCs) and 993 goods for non-LDCs which will be subjected to tariff payment.
According to the latest statistics, Afghanistan's sensitive list comprises 850 products for both the LDCs and non-LDCs, Bhutan has 150 items on the list, the Maldives has 152, Pakistan 936, Nepal 998 for the LDCs and 1,036 for the non-LDCs, and Sri Lanka has 845 for LDCs and 906 for non-LDCs.
"Many of the member countries have already downsized their sensitive lists. India has reduced it to 25 items for LDCs and 695 for non-LDCs. So other SAARC countries need to be more open," the official said.
SAARC member countries had decided to reduce the number of goods in their sensitive lists by 20 per cent in the phase-2 in 2011 for enhancing trade under SAFTA with the aim of encouraging exports from Least Developed Contracting States which has been made effective from January last, an official said.
He also said SAFTA was formed on January 6, 2004 with the objective of gradual elimination of most tariff and other trade barriers on products and services among the member countries-Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, Afghanistan and Sri Lanka.