Govt to shrink sensitive list to make SAFTA work, improve Pak ties
To improve relations with Pakistan, India is likely to cut the peak tariff rate to 5 % within three years. The Union Cabinet might allow a diminution in the sensitive list by 30% for Non-Least Developed Countries (NLDCs), under the Safta trade liberalisation programme.
Categorization of nations under South Asian Free Trade Area (SAFTA):
SAFTA has a total of 8 nations
India, Pakistan and Sri Lanka: Non-Least Developed Countries (NLDCs).
Afghanistan, Bhutan, Bangladesh, Maldives and Nepal: Least Developed Countries (LDCs).
Currently Pakistan keeps 1,209 tariff lines, which it should cut to assist India reap the gains of the Most Favoured Nation status given to its neighbor.
The commerce ministry also proposed the expansion of the list of tradable commodities b/w India and Pakistan through the Attari border to boost bilateral trade ties.
India imports items worth $171 million from Pakistan and exports goods worth $604 million.
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Month: Current Affairs - August, 2012