Pak may accord MFN status to India

ISLAMABAD, MAY 8: In its eagerness to get into the Indian Ocen Rim Association for Regional Cooperation (IOR-ARC), Pakistan may finally a...

ISLAMABAD, MAY 8: In its eagerness to get into the Indian Ocen Rim Association for Regional Cooperation (IOR-ARC), Pakistan may finally agree to accord the most favoured nation (MFN) status to India, which it has been holding back despite the latter according the same to Islamabad years ago.Pakistan, which has been desperately trying to get into the Association for quite some time, had indicated to IOC-ARC that it was ready to adhere to the charter of the association which clearly states that no member country should discriminate against the other member country, according to information available here. Pakistan made this commitment at the second meeting of the council of ministers of IOR-ARC which was held at the Mozambique capital, Maputo, towards the end of March and early April and in which the membership issue was mainly discussed.

The Pakistani government sent a telephonic message to the meeting through its high commissioner at Mauritius, Salman Gailani, at the very last moment which clearly said thatPakistan was committed to the principle of MFN in accordance with all the provisions of World Trade Organisation (WTO) agreement. The commitment further said that Islamabad was ready to extend this principle to the IOR-ARC member countries and that Pakistan would adhere to the IOR-ARC charter.

But the meeting rejected the Pakistani offer saying that it was, "too unofficial and informal" and through a resolution passed at the meeting made it mandatory for all new entrants to sign an instrument of accession committing themselves to offer non-discriminatory treatment to all members.During the Maputo meeting the IOR-ARC, however admitted Bangladesh, Iran, Seychelles, Thailand and United Arab Emirates as new members taking the association’s total strength to 19. Japan and Egypt were admitted as dialogue partners.

Though India did not oppose the Pakistani bid for membership of IOR-ARC during the meeting, as per information available here the Indian delegation led by external affairs minister Jaswant Singhinsisted that the new membership be granted on the basis of fulfilment of criteria contained in the association’s charter. Though Pakistan’s expression of commitment to the MFN status in accordance with the WTO agreement hardly makes a difference for India as under that agreement it can delay granting of status to India till the year 2003, but its adherence to the IOR-ARC charter will force it to grant MFN to India immediately.

Both countries are also bound to ease trade and commerce restrictions gradually as they are party to the resolve to bring about South Asian free Trade Area (SAFTA) by the year 2001. But Pakistan’s domestic public opinion does not allow granting of such a status to India as there has been a continuous demand from the hard-liner political and religious parties not to do trade and business with India before the resolution of the Kashmir issue.