India shortens sensitive list

India yesterday decided to reduce the number of items on the sensitive list for trade with Saarc countries, aiming to expand trade of goods in the region.
"The government has approved the pruning of sensitive list to increase trade with Saarc countries," sources said.
Shifting of items from sensitive list to general category would do away with duty impediments and boost trade, according to officials.
Under the South Asian Free Trade Agreement (Safta), which went into force in July 2006, India's imports are classified under two lists--the Most Favoured Nation list and sensitive list.
India's sensitive list for Least Developed Countries (LDC) like Bangladesh has just 25 items. And the same for non-LDC like Pakistan has over 800 commodities.
It was proposed to cut 30 percent of products under the sensitive list for non-LDCs under Safta. According to an official, the decision would benefit Pakistan more than any other Saarc member.
The commerce ministers of India and Pakistan had agreed in April this year that discussions would continue at official levels to draw a roadmap for further reductions in the Safta-sensitive list.
In order to normalise trade with India, Pakistan had shifted from a small positive list regime to a negative list, which will facilitate trade of many more (about 6,500) goods.