Sensitive list under SAFTA to be cut by 30pc
Monday, 16 July 2012
Syful Islam
Member states of South Asian Free Trade Area (SAFTA) have moved further to trim down sensitive list of products by 30 per cent in phase-3 to make the pact effective, trade officials have said.
In a recent meeting of Working Group on the Reduction of Sensitive List under SAFTA at Kathmandu the representatives of the governments concerned discussed the issue and approved it for implementation.
The meeting decided that member countries will submit the offer list of possible items to be removed by August this year.
"Now we will consult with the stakeholders about the products which can be taken out of the list of sensitive products," a senior commerce ministry official told the FE Sunday.
He said reduction in number of products in the sensitive list is very much necessary to make the accord effective and increase the volume of intra SAARC (South Asian Association for Regional Cooperation) trade.
India has proposed to keep the number of sensitive products at 100 and reduce tariff of other products to 0 to 5 per cent, meeting sources said.
Besides, the representatives also proposed to bring all the facilities offered bilaterally under the SAFTA accord to make it more effective.
The SAARC members who are in the group of the least developed countries (LDCs) are committed to reduce tariff of products, to be removed from the sensitive list, by 2020 while the non-LDCs will do the same by 2015.
Since January this year Bangladesh has had 987 products on the sensitive list for the LDCs and 993 goods for non-LDCs which will be subjected to tariff payment.
Afghanistan's sensitive list comprises 850 products for both the LDCs and non-LDCs, Bhutan has 156 items on the list, the Maldives has 152, Pakistan 936, Nepal 998 for the LDCs and 1,036 for the non-LDCs, Sri Lanka has 845 for LDCs and 906 for non-LDCs and India has 25 for LDCs and 695 for non-LDCs.
A senior commerce ministry official said the Maldives is insisting on 100 per cent reduction of the sensitive list by 2012 to make the regional bloc a free trade area.
He said during a meeting last year before the SAARC summit, the Maldives officials tried to convince the member countries to incorporate it in the Addu Declaration. India had supported the proposal.
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.
"Many of the member countries have already downsized their sensitive lists. India has almost opened its market for the LDCs. So, others need to be more open," the official said.
Talking to the FE earlier, Executive Director of the Centre for Policy Dialogue (CPD) Dr Mustafizur Rahman said SAFTA member countries have agreed to cut down their sensitive lists periodically.
"Since India has slashed the list drastically for the LDCs, there is pressure for other members to shorten theirs," he said adding that Bangladesh, as an LDC, will get the chance to reduce the number of items slowly.
Mr Mustafizur Rahman said Bangladesh has to consider three factors -- revenue implications, impact on domestic industry and farming sector -- before selecting the products for exclusion from the list.
"A priority list has to be prepared first which in any way won't be given tariff preference to any countries. Those which will get less priority in the list can be brought out of the sensitive list in phases," he suggested.
Chief Executive Officer of PRAN-RFL Group Amjad Khan Chowdhury, also president of Metropolitan Chamber of Commerce and Industry (MCCI), had earlier told the FE that in this free market economy everything must be open for all.
"Among the SAARC members, none but India matters to us in bilateral trade. So, I prefer free trade with India," he said.
Replying to a query he said, "Bangladesh's sensitive list can be shortened like that of India. Very few items can be kept on it."
Member states of South Asian Free Trade Area (SAFTA) have moved further to trim down sensitive list of products by 30 per cent in phase-3 to make the pact effective, trade officials have said.
In a recent meeting of Working Group on the Reduction of Sensitive List under SAFTA at Kathmandu the representatives of the governments concerned discussed the issue and approved it for implementation.
The meeting decided that member countries will submit the offer list of possible items to be removed by August this year.
"Now we will consult with the stakeholders about the products which can be taken out of the list of sensitive products," a senior commerce ministry official told the FE Sunday.
He said reduction in number of products in the sensitive list is very much necessary to make the accord effective and increase the volume of intra SAARC (South Asian Association for Regional Cooperation) trade.
India has proposed to keep the number of sensitive products at 100 and reduce tariff of other products to 0 to 5 per cent, meeting sources said.
Besides, the representatives also proposed to bring all the facilities offered bilaterally under the SAFTA accord to make it more effective.
The SAARC members who are in the group of the least developed countries (LDCs) are committed to reduce tariff of products, to be removed from the sensitive list, by 2020 while the non-LDCs will do the same by 2015.
Since January this year Bangladesh has had 987 products on the sensitive list for the LDCs and 993 goods for non-LDCs which will be subjected to tariff payment.
Afghanistan's sensitive list comprises 850 products for both the LDCs and non-LDCs, Bhutan has 156 items on the list, the Maldives has 152, Pakistan 936, Nepal 998 for the LDCs and 1,036 for the non-LDCs, Sri Lanka has 845 for LDCs and 906 for non-LDCs and India has 25 for LDCs and 695 for non-LDCs.
A senior commerce ministry official said the Maldives is insisting on 100 per cent reduction of the sensitive list by 2012 to make the regional bloc a free trade area.
He said during a meeting last year before the SAARC summit, the Maldives officials tried to convince the member countries to incorporate it in the Addu Declaration. India had supported the proposal.
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.
"Many of the member countries have already downsized their sensitive lists. India has almost opened its market for the LDCs. So, others need to be more open," the official said.
Talking to the FE earlier, Executive Director of the Centre for Policy Dialogue (CPD) Dr Mustafizur Rahman said SAFTA member countries have agreed to cut down their sensitive lists periodically.
"Since India has slashed the list drastically for the LDCs, there is pressure for other members to shorten theirs," he said adding that Bangladesh, as an LDC, will get the chance to reduce the number of items slowly.
Mr Mustafizur Rahman said Bangladesh has to consider three factors -- revenue implications, impact on domestic industry and farming sector -- before selecting the products for exclusion from the list.
"A priority list has to be prepared first which in any way won't be given tariff preference to any countries. Those which will get less priority in the list can be brought out of the sensitive list in phases," he suggested.
Chief Executive Officer of PRAN-RFL Group Amjad Khan Chowdhury, also president of Metropolitan Chamber of Commerce and Industry (MCCI), had earlier told the FE that in this free market economy everything must be open for all.
"Among the SAARC members, none but India matters to us in bilateral trade. So, I prefer free trade with India," he said.
Replying to a query he said, "Bangladesh's sensitive list can be shortened like that of India. Very few items can be kept on it."