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| Sunday, 14 July 2002 |
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Lanka - Pakistan FTA taking shape The proposed Free Trade Agreement (FTA) between Sri Lanka and Pakistan is scheduled to be signed in the first week of August in Sri Lanka during the visit of Pakistan President General Pervez Musharaff. The draft is almost finalised, but the schedules (annextures) are yet to be finalised. It can be finalised within 90 days of signing the agreement according to the conditions laid down in the agreement, said Deputy Director of Commerce Dr D. Silva. The annexures include the non-concession list, 100 per cent duty concession list and the residual lists, he said. Two technical consultations were held prior to the ministerial meetings last year and in April 2002 to finalise the draft text of the agreement. A technical team will visit Pakistan immediately prior to the scheduled visit of Minister of Commerce and Consumer Affairs Ravi Karunanayake late July to finalise the outstanding issues. A meeting was held last week between Sri Lanka and Pakistan and the delegations were led by Minister Karunanayake and Pakistan's Minister of Commerce, Industries and Production Abdul Razak Dawood. Minister Dawood said that it was imperative to even out the existing imbalance and achieve a quantum leap in bilateral trade between Sri Lanka and Pakistan. Minister Karunanayake said that exports under the FTA should be symmetrical and that Sri Lanka would explore the possibilities of revising its existing No-concession list to redress the concerns expressed by Pakistan. Pakistan does not maintain para tariffs at present. It has proposed that all para tariffs be eliminated, but has suggested that Sri Lanka might maintain the existing para tariffs if any, upto December 31, 2002. It is learnt that Sri Lanka has undertaken to communicate its position within two weeks through diplomatic channels. The following decisions were taken by the two technical teams who met to resolve the outstanding issues related to the bilateral Free Trade Agreement: * Pakistan handed over a list of 118 items out of Sri Lanka's No-concession list requesting immediate 100 per cent duty concessions while Sri Lanka handed over a list of 143 items out of Pakistan's No-concession list requesting immediate 100 per cent duty concessions. * Sri Lanka submitted a draft offer containing 319 tariff lines. Pakistan said that instead of increasing the number of lists, it is better to concentrate on the existing non-concession and 100 per cent concessions lists. * Pakistan said 305 items placed as Annexe F will be moved from Sri Lanka's request list for immediate 100 per cent tariff concessions to the three-year phase-out list of Pakistan. * Pakistan will hand over the Tariff Rate Quota list consisting of a few items from HS chapters 8, 9, 14, 21, 61 and 62 by July 15. The tariff concessions on these items will be on a one time fixed basis for a specified quantity. * Pakistan agreed to remove betel leaves from its No-concession list and to place it in the Tariff Quota list. * The Sri Lanka Tea Board (SLTB) requested zero duty to be granted for tea exports from Sri Lanka to Pakistan. SLTB also proposed that Sri Lanka and Pakistan blend and distribute teas imported from Sri Lanka. * According to a suggestion made by Sri Lanka, the issues of Customs valuation, signature verification or value addition involved in the export shipments of both contracting parties should not be held up and shall be allowed for clearance provisionally as prescribed under the relevant Customs regulations and information or verification can be obtained. |
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