India has ruled out moving to the World Trade Organisation against Pakistan for not granting it the most favoured nation status and said it wanted Islamabad to do so without any "external pressure."
India does not want to file an appeal in WTO against Islamabad for not granting MFN status to New Delhi, Indian High Commissioner to Pakistan Shivshankar Menon said on Monday at the Islamabad Chamber of Commerce and Industry here while speaking on 'Pak-India trade: Its present and future.'
"We want Islamabad to do it without any external pressure," he said. India has already granted MFN status to Pakistan and other SAARC members.
He urged Pakistan to respond positively to India's gesture as trade relations through MFN has the potential to boost the trade to $6 billion in one year.
"Islamabad's move to a negative list from the current positive list system, if that were to happen, I am sure that our existing complimentaries will create several opportunities for businessmen from both the countries," he said.
Menon, who has been addressing several Pakistan trade bodies in the aftermath of meeting between Prime Minister Atal Bihari Vajpayee and Pakistan President Pervez Musharraf on the sidelines of SAARC summit held in January here, said opening of direct bilateral trade on MFN basis would result in the expansion of the two-way trade to the tune of $6 billion within a year or so.
To another question, Menon said Pakistan might not become a member of Bangkok agreement until it accorded MFN status to all member countries, including India.
He said that granting of MFN status to member countries was the major condition under the agreement.
Menon said the present atmosphere of friendship and warmth between peoples of the two countries can be utilised for transforming the economies for the benefit of the people.
The high commissioner said Pakistan could export raw cotton, hides and skins, edible oil, nuts, metal, precious and semi precious stones to India while New Delhi could export iron ore and pig iron; medical and pharmaceutical products and chemicals to Islamabad.
He said even in cotton textiles, "where we compete for the international market, we could still cooperate as Pakistan produced long fibre cotton which could be spun and woven in India and then be sent back to Pakistan for stitching."
Pakistan could save foreign exchange by importing cheaper medical drugs, textile machinery, tea, chemicals and truck tyres from India, Menon said.
The high commissioner also said the Indian High Commission in Islamabad has opened special windows for speedy clearance of business visas.
"We are opening a separate window for business visas in the High Commission of India in Islamabad," he said.
Presently, the High Commission issued business visas within three weeks to bonafide Pakistani businessmen who wish to visit India for commercial purposes.
Menon said the framework agreement on SAFTA could represent a qualitative shift to a short negative list between the two countries.
It would certainly be the endeavour of the Indian government to bring SAFTA into force on January 1, 2006, he said.
Welcoming the Indian high commissioner, ICCI president Zubair Ahmed Malik said at present the two-way trade was estimated at $250 million, which he said did not represent the real potential that exists in the two countries.
Also the tension between the two largest members of SAARC kept hostage the growth potential of the entire South Asia region, he said.
The trade through unofficial channels which is estimated at more than $1 billion, should be converted into official trade as soon as possible.
This would also be beneficial for revenue generation in both the countries as well as lowering the cost of goods to the businessmen, he added.
