India and Pakistan opened trade talks here on Monday with optimistic statements by their Commerce Secretaries, days after the Prime Ministers expressed confidence that the upcoming second round of post-Mumbai line Ministry-level talks would show results.
The Commerce Secretaries, in their opening remarks, echoed the mandate given by their top leadership. “Our agenda has been clearly laid out in terms of preparing timelines for complete normalisation of trade relationship and implementation of committed SAFTA obligations,” said Commerce Secretary Rahul Khullar.
“I want to assure you that please have trust and faith in the process. Times have changed. World is coming closer,” said his Pakistan counterpart Zafar Mahmood.
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The environment for a possible fruitful round of talks was created with Pakistan granting India the most favoured nation (MFN) and Prime Minister Manmohan Singh responding by bringing Islamabad within the ambit of a Preferential Trade Arrangement. And as Mr. Mahmood was leaving for New Delhi, Pakistan added a dozen commodities to the list of imports from India.
Dr. Singh has identified two areas where ties with Pakistan will improve in the coming days — assuaging Indian concerns on the security front and fostering a normal economic relationship. As the Prime Minister has pointed out, “thinking elements in Pakistan themselves realise that trade liberalisation can be a win-win situation. There is also recognition that the confidence-building measures across the Line of Control offer an opportunity to make the life of ordinary residents of Jammu and Kashmir on both sides of the Line of Control more livable.”
Mr. Khullar welcomed the Pakistan Cabinet's decision to approve the MFN status to India and pointed out that “expectations from these talks are running high” because the business community and the political class wanted a breakthrough. “With such clear political vision, we are now obliged to walk the talk,” he said.
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“Our business communities, our politicians and our citizens are looking to both our delegations to deliver a substantial breakthrough not only for full normalisation of trade relationship, but to go beyond and lay a strong foundation for preferential trade arrangements,” Mr. Khullar said.