Pakistan-India Trade:

Nisha Taneja
Similarly, members are allowed to apply Sanitary and Phytosanitary
(SPS) Measures only to the extent necessary, and based on sufficient scientific
evidence. These measures, when applied in a trade-restrictive manner,
obstruct trade and pose non-tariff barriers. Thus, complex procedures
and a lack of transparency in regulations are some examples of measures
that could be trade-restrictive.
An analysis of the non-tariff measures notified by Pakistan under
SAFTA shows that some of them did not pose any barrier because they
were compliant with WTO rules, or because corrective action had already
been undertaken (Taneja, Rastogi, and Rai 2008). Other measures
were found to be trade-restrictive on account of non-recognition
of standards, lack of transparency of rules and regulations, lack of infrastructure,
and complex and cumbersome procedures.
The measures perceived as being discriminatory were related to various
levies and taxes imposed by India on the interstate movement of goods.
Although these measures restrict trade by inflicting additional transaction
costs, they do not qualify as non-tariff barriers. This is because similar treatment
is accorded to interstate movement of domestic goods. Necessary corrective
action is being taken as part of the ongoing reform process in India.
There were other notified NTMs where India had already initiated
corrective action, but SAFTA member countries (such as Pakistan) are
unaware about many of these actions. For instance, Pakistan notified
that a labeling requirement under the Jute and Jute Textiles Control
Order of 2000, which stipulated that each and every imported jute bag
must give the “Country of Origin” on the bag, discouraged imports as
bags carrying such labeling could not be used for packing goods made
in India. The marking requirement was amended in 2002, directing
every jute bag to be marked/printed/branded “Bag made in—Country
of Origin.” However, despite this amendment, Pakistan had notified
that the Control Order of 2000 was a barrier for Pakistani exporters.
A similar problem was found in a measure related to clauses in the
Indian Customs Act pertaining to valuation not consistent with GATT
Article VII (which lays down the general principles for an international
system of valuation). The required amendments in the Customs Act
were made in 2007, yet this NTM was notified under the SAFTA subgroup
on NTMs. This indicates a lack of awareness about the amended
Indian Customs Act.
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