Trade talks begin; Pak asks India to have "trust faith"

New Delhi,Nov 14 (PTI) Amidst high expectations by India on the MFN issue, Pakistan today asked New Delhi to have "trust and faith" in it, as "times have changed" and Islamabad wants complete normalisation of the bilateral trade. India said, there is a clear political desire to "walk the talk" with its neighbouring country. The mutual assurances were handed out by the Commerce Secretaries of the two countries, who began their two-day talks for ensuring normal bilateral trade. Armed with a "political backing and mandate, Pakistan Commerce Secretary Zafar Mahmood said in his opening remarks, "I want to assure you that please have trust and faith in the process (normalisation of trade). Times have changed. World is coming closer". Mahmood, who is having a second round of talks with his Indian counterpart in the last six months said, he is looking forward to the official level discussions "in a spirit of mutual cooperation and confidence". In Pakistan, besides common people and businessmen, political leadership wants normalisation of bilateral trade,he added. Indian Commerce Secretary Rahul Khullar while welcoming the Pakistan's decision to grant the Most Favoured Nation (MFN) status to India said "expectations from these talks are running high..." as the people including business communities and politicians want a breakthrough and lay a foundation for preferential trading arrangements. "With such clear political vision, we are now obliged to walk the talk," Khullar said. India granted the MFN status to Pakistan way back in 1996. Islamabad, had announced to grant the crucial WTO-compliant regime for New Delhi on November 2. But confusions followed. At present, Pakistan allows import of only about 1900 items from India Expressing confidence the talks would produce "significant and meaningful" results, Khullar said commerce ministers of the two countries have mandated them to lay down timelines for normalisation of trade and dismantling of all the non-trade barriers (NTBs). "Our political masters have given us clear directions on where we have to go..." he said. Khullar said they also need to meet obligations under the South Asia Free Trade Agreement (SAFTA). Pakistan has been complaining that its products face NTBs in India. New Delhi, on the other hand, has been asking Islamabad to meet its SAFTA obligations to allow Indian items to enter the Pakistani market. "Our business communities, our politicians and our citizens are looking to both our delegations to deliver a substantial breakthrough not only for full normalisation of our trade relationship, but to go beyond and lay a strong foundation for preferential trading arrangements," Khullar said. In his meeting with Pakistan's Prime Minister Yousuf Raza Gilani on the sidelines of the SAARC Summit at Addu in the Maldives last week, Prime Minister Manmohan Singh had offered to sign a Preferential Trade Agreement with Pakistan, committing to eliminate duties on all goods by 2016. India had granted the MFN status to Pakistan in 1996. MFN is a WTO rule under which countries need to treat their trading partners equally. Mixed signals from Islamabad had caused confusion following announcement of the November 2 decision of the Pakistani Cabinet on granting MFN status to India. However, Pakistan Foreign Minister Hina Rabbani Khar had clarified on the fringes of the SAARC Summit, "We will not backtrack on Cabinet decision. So let me categorically say that and I don't see a lot of room for confusion." PTI