India, Pak target $10b trade by 2010

NEW DELHI, Aug 1: India and Pakistan today set a target to achieve a bilateral trade of $10 billion by 2010, more than five times against its present level, by putting in place several measures, including opening bank branches, allowing movement of cement and tea as well as addressing issues of non-tariff barriers.
India agreed to facilitate cement import from Pakistan by putting it on a “fast track”, commerce secretaries of the two neighbours informed at the end of a two-day talk to iron out trade related issues. The Indian side, led by commerce secretary, Mr Gopal K Pillai, said that India would complete all statutory certification related formalities on a fast track. India was also in the process of making appropriate policy changes to accept third party certification, said a joint statement, issued at the end of the trade talks set within the framework of the composite dialogue, launched in February 2004.
“In Pakistan, up to 15 million tons of cement is available for export. The first shipment should be ready by next month,” Pakistan commerce secretary Mr Syed Asif Shah said at a joint press conference, expressing confidence that the $10 billion trade target was achievable.
Mr Pillai said BIS inspectors had already inspected four Pakistani facilities and their report would be ready by the end of this month. India has a cement capacity of 170 million tons and faces a shortfall of 10 million tons and Pakistan could bridge this gap.
Marking another important milestone in the economic relations between the two countries, New Delhi and Islamabad agreed to allow two of their banks to open branches across the border within six months of receipt of applications or by 31 December, whichever is later.
The State Bank of India and Bank of India had applied for opening branches in Pakistan, while United Bank and National Bank want to start operations in India.
It was also agreed to encourage export of Indian tea ~ which takes places through unofficial channels of Singapore and Dubai ~ through rail route. “Pakistan side also noted the request for providing duty concessions on import of Indian tea,” the joint statement said.
The two countries also agreed to jointly file application for geographical indication on Basmati to end the dispute over sale of the rice variety in international markets. A technical committee would be set up for this purpose, the joint statement said.
The Pakistan side raised the issue of notification by India declaring ‘Super Basmati Rice’ as an approved variety for export. “Super Basmati is a variety evolved by Pakistan in the 1960’s and sold world over,” Mr Sayed Asif Shah said.