The Pakistan Commerce Minister, Mr Makhdoom Amin Fahim, has said that Islamabad can grant “full” Most Favoured Nation-status to India only after a “negative list” trade regime between the two countries is phased out.

The two countries are currently moving from a “positive list” regime to a “negative list” regime but even the “negative list” goes against the non-discriminatory trade that MFN status demands, Mr Fahim told a news conference yesterday.

The “positive list” agreed on by the two sides contains over 1,900 items that can be traded between the two sides.

The “negative list” currently being finalised will include the items that cannot be traded, significantly expanding the scope for bilateral trade.

“We are working on the negative list. The items in the list will not be allowed for trade with India,” Mr Fahim said.

Even trade with India through a negative list was a violation of the World Trade Organisation rules and until all items are phased out from the negative list, no one can say that full MFN-status has been granted to India, he added.

Mr Fahim’s statement cleared the confusion that has persisted about Pakistan’s plans to give India MFN-status since Information Minister Firdous Ashiq Awan announced after a Cabinet meeting last October that the status had been granted to India.

Asked if trade liberalisation with India was linked to political issues, Mr Fahim said progress in trade negotiations will be in line with developments in other areas of the overall dialogue process launched in 2004.

He said the Cabinet had authorised the Commerce Ministry to liberalise trade with India and the regime will initially be switched over from a positive list to a negative list.

“The Commerce Ministry is working with all stakeholders to finalise the negative list by next month,” he said.

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