Indo-Pak. trade talks suspended
- Due to the current tension and also because of suspension of bilateral talks in the Indo-Pak relationship, there has been a significant drop in trade across the border.
- Anand Sharma from the Indian Union Ministry of Commerce and Industry was scheduled to inaugurate the India Show, held in Lahore. His visit now stands cancelled, because Pakistan has violated the bilateral trade pact.
- Non-Discriminatory Market Access (NDMA) was given to India under that pact
- In January, both sides made the agreement for a period of five year, according to which all goods were supposed to be traded through the Wagah-Attari border.
- Another agreement was signed for reducing the sensitive list of items from 1,209 to 100, in accordance with the South Asia Free Trade Agreement (SAFTA).
- Currently, India has reduced list of such items from 1,209 to 614, but is ready for further reductions up to 100 items, within one year. This was decided in the last month’s bilateral talks.At present, 137 items are being traded through the Attari-Wagah border area.
- If Pakistan decides to remove the negative list, then it would automatically lead to NDMA for India. This step will make it equivalent to granting India with the status of MFN or the Most Favoured Nation, but Pakistan has expressed that they are not in the position to do so.
- India Pakistan relationship
- Non-Discriminatory Market Access (NDMA)
- South Asia Free Trade Agreement (SAFTA)
- Most Favoured Nation (MFN)
- Sensitive list & negative list