India Agrees To Support Pak on Textiles Exports to EU.

NEW DELHI: India on Wednesday agreed to support a scheme proposed by the European Union to boost textile exports from flood-ravaged parts of Pakistan with duty waivers, a move it had opposed earlier. But there was little else to talk about in terms of concrete steps to bolster trade ties between the neighbours other than efforts to double trade to $6 billion over the next three years.

Indian officials, however, said that Islamabad had agreed to implement "all mutual obligations contracted under Safta" and "with full sincerity". It is being seen as Pakistan's commitment to finally grant most-favoured nation (MFN) status to India and move to a system of negative list - the norm under multilateral agreements such as Safta - instead of the existing positive list policy that only allows export of a limited number of items.

After his meeting with commerce minister Anand Sharma, Pakistan commerce minister Makhdoom Mohammad Amin Fahim, however, refused to commit to any timelines although there are indications that there will be some movement after the commerce secretaries from the two sides meet in November.

In a joint statement, the two sides agreed to move to easier business visa rules by November so that businessmen can get multiple-entry permits that may be valid for up to one year.

Sharma said that India was also looking to ease curbs on investment from Pakistan and Islamabad may reciprocate.

"The trade talks are part of the overall exercise to improve relations between the two neighbours. The meetings between the ministers were very productive and useful," Sharma told reporters, adding it was the first time the two countries' trade ministers had met in 35 years.

"Things are moving according to plan," added Fahim who is in India for a nearly a week along with a business delegation. Pakistan also wants India to ease norms for trade in cement, textiles and surgical instruments.

Sharma said that a second customs post will be opened at the Wagah-Attari border over the next two months and trade hours will be extended to up to 12 hours in the summer months.

Source : timesofindia.indiatimes.com