Substitute to ROZs: Pakistan seeks unilateral concessions on EU pattern

MUSHTAQ GHUMMAN

ISLAMABAD: Pakistan has sought unilateral trade concessions from the United States on the pattern of European Union, as a substitute to the Reconstruction Opportunity Zones (ROZs) which have already been abandoned by Washington, well informed sources told Business Recorder.

The sources said, this issue has been taken with the US Ambassador to Pakistan, Richard Olson by the commerce ministry’s team led by senior Commerce Minister, Makhdoom Amin Fahim at a recent meeting held in the ministry of commerce.

The sources said US had promised at the 6th meeting of Trade and Investment Framework Agreement (TIFA) held in April last year that Washington would consider Pakistani proposals but nothing has been indicated so far to Islamabad despite passing of 10 months.

According to the commerce ministry, the US is the single largest partner of Pakistan but due to prevailing law and order situation and negative travel advisory, US buyers/importers have been reluctant to visit Pakistan. Due to this Pakistani producers/ exporters feel difficulties for new deals with the US importers.

Amen Fathom, according to sources, requested US ambassador to send a delegation comprising major buyers for business deals in Pakistan.

During 5th and 6th TIFA Council meetings, Pakistan stressed the need for arranging a buying mission or an interaction between Pakistani suppliers/ manufacturers and US buyers at some other location. The United States Trade Representative (USTR) in collaboration with ministry of commerce and Board of Investment (Bio) arranged “Pakistan Trade Opportunities Conference” in London to address this issue.

During the conference, the US authorities had stated that the main hurdle for US importers and their agents to visit Pakistan is the lack of insurance coverage and security situation.

The secretary commerce offered that requisite insurance coverage would be provided by Pakistani exporters through local insurance companies. He promised that full time security would be provided by federal and provincial governments to the visiting importers and their agents. The government has recently decided to provide security to visiting foreign buyers or their agents during their movements in Pakistan.

National Insurance Company Limited (NICL) has announced special insurance policy for visiting foreign buyers or their foreign agents, which envisage insurance coverage from 200,000 to 500,000 dollars on a premium ranging from 75 to 225 dollars.

The commerce ministry has also taken up the issue of export of mangoes to the US market.

Mango consignments are allowed entry into Chicago international airport. Mangoes are then transported to Iowa for irradiation treatment at Sadax Corporation.

The commerce ministry has proposed that mango shipments by sea may also be allowed at a sea port nearest to the irradiation facility. Pakistan is also of the view that its mangoes should also be allowed on other air ports and hot water treated mangoes be accepted for import into the US.

During the 6th TIFA Council meeting, US side requested to lift ban on import of live cattle from the US to Pakistan. The ban was imposed in 2009 due to incidence of Bovine Spongiform Encephalopathy (BSE) commonly known as“ mad cow disease” in the US cattle stock.

Pakistan, sources said, is unlikely to allow import of cattle from the US as import of BSE infected cattle will compromise Pakistan’s free status and may hurt local exports of meat and meat products. Moreover, giving concession to one country would definitely lead to lifting ban on other such countries under the World Trade Organisation (WTO) laws.