The Commerce, Industry and Textiles Minister, Mr Anand Sharma, has said India will meet its commitment of reducing tariff lines by 20 per cent under the sensitive list by next month for all South Asian Association for Regional Cooperation (SAARC) member countries. Sensitive list comprise items that are not subject to tariff reduction. This will fulfil a critical requirement of the South Asian Free Trade Area (SAFTA) agreement signed by SAARC member countries, an official statement said. “Time has come to take a call on reduction of barriers to trade.
SAFTA is moving forward on the path of economic integration and India should give full support so that the region realises it full potential” Mr Sharma said on Thursday at the South Asia Forum meeting organised by FICCI and the External Affairs Ministry. The Minister also informed that India has been bringing down the peak tariffs under SAFTA for imports from Pakistan. According to the Minutes of the recent India–Pakistan Joint Working Group meeting, the peak tariff rates would be 8 per cent by January 1, 2012 and again by 5 per cent by January 1, 2013. Pakistan assured that they will also work internally towards meeting its SAFTA obligation to India. India has already allowed zero duty access for the SAARC Least Developed Countries, for almost 97 per cent of the tariff lines.