SAFTA states to cut sensitive lists

SOUTH Asian countries on Tuesday agreed to reduce the number of exportable items on their sensitive lists. They, however, did not agree on what and how many items are to be delisted. Sensitive list is a list of products with every member country which dœs not include tariff concession under the South Asian Free Trade Agreement (SAFTA). The list is adopted to protect vital domestic industries or important sources of customs revenue. However, overuse of such the list can make goods more expensive for consumers and may act as a trade barrier. During the meeting of the Committee of Experts on Reduction of the Sensitive Lists, representatives from the SAFTA member states acknowledged that the lengthy sensitive lists have hindered intra-regional trade to a larger extent and agreed to reduce the list. Jib Raj Koirala, joint secretary at the Ministry of Commerce and Supplies, all the member countries have been asked to submit their revised sensitive lists by the end of January 2014 at the SAARC Secretariat. The meeting also agreed on the modalities that could be adopted while revising the lists. “Countries can have much flexibility while revising the goods on the sensitive lists,” said Koirala, who led Nepal at the meeting. Koirala said modalities including, nature, trend and volume of trade, reciprocal approach and bilateral agreements and margin of preferences, among others, could be followed while reducing the items. “It has been agreed that the lists would be shortened, but without impacting revenue collection of the countries,” Koirala said, adding this will create a win-win situation. Rameshwor Pokharel, under secretary at the ministry, said the member countries could also recommend other alternative modalities to be followed while revising the sensitive lists by the end of August to the SAARC Secretariat. “If a country is not in position to reduce its list, it can continue the existing list, but will have to provide explanation on their inability to reduce the list,” he said. Once the revised lists are forwarded to the SAARC Secretariat, they will be tabled at the meeting of the SAARC Ministerial Council and SAARC Expert Group to be held in Sri Lanka from August 21-23 for endorsement. “The new items under the sensitive lists will only come to implementation once the meeting endorses them,” said Pokharel, who also participated at the meeting.