The Hindu : Pak. rules out MFN status for India again

Online edition of India's National Newspaper
Thursday, Dec 19, 2002

International

International

Pak. rules out MFN status for India again

By B. Muralidhar Reddy

ISLAMABAD Dec. 18. Pakistan has once again ruled out the Most Favoured Nation (MFN) status for India unless there was `tangible progress' on resolution of political issues, particularly the Kashmir `dispute'.

The Pakistan Commerce Minister, Humayun Akhtar Khan, told reporters here on Monday that any proposal for a Free Trade Agreement (FTA) or grant of MFN status or any other step to promote trade with India was `impossible' in the present circumstances.

India has unilaterally granted MFN status to Pakistan and has repeatedly asked Islamabad to reciprocate.

Mr. Khan's comments assume significance as India had questioned the purpose of the proposed South Asian Association of Regional Cooperation summit here in the second week of January. Last week, Pakistan indefinitely postponed the summit, accusing New Delhi of attempting to sabotage SAARC.

In recent weeks, India and Pakistan have been engaged in a war of words over the South Asian Preferential Trade Agreement (SAPTA) and South Asian Free Trade Agreement (SAFTA). While New Delhi had alleged that Islamabad was dragging its feet on the two agreements, Islamabad had denied the charges.

Mr. Khan's statement came in response to a question on the reported statement of the Prime Minister, Atal Behari Vajpayee, that Pakistan was putting off any decision on MFN status to India.

``We cannot initiate a dialogue with India on trade or grant (it) the MFN status until it starts negotiations on political issues, particularly Kashmir, which is the core dispute between the two countries.''

India wanted MFN status before talks on political issues, but Pakistan believed the issues, including Kashmir, should be tackled in the first place to have durable trade relations with India.

Asked to comment on the inconsistency in Pakistan's stance of opposing trade negotiations till the resolution of political issues but providing guarantees of security for Iran to India gas pipeline, the Minister said his country had agreed in principle in the past to the pipeline.

He, however, maintained that the assurance was given to Iran and not to India.

Mr. Khan's comment was contrary to the repeated statements in recent days made by the Pakistan Foreign Minister, Khurshid Mahmud Kasuri, that Islamabad was ready to give guarantees to India on the Iran-India gas pipeline via Pakistan's land route.

The pipeline is expected to be one of the major items on the agenda of the Iranian President, Mohammad Khatami, who would be here on an official visit from December 23.

Mr. Khan said an official trade delegation would start negotiations with the United States on December 27 on stepping up trade cooperation and then there would be a follow-up team from the private sector.

The Free Trade Agreement with the U.S. would be part of negotiations but it was at a preliminary stage and progress was expected during his visit to Washington from December 27.

``We will seek expansion in trade and enhancement of textile quota, besides talks on the post-2005 scenario when quotas would be removed,'' he said.

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