Himalayan News Service

Kathmandu, March 15:

The eighth round of SAARC Committee of Experts’ (CoE) meeting is scheduled to be held from April 17 to 19 in Kathmandu. The meeting will work to iron out outstanding issues, paving the path for creating the South Asia Free Trade Area next year. The meeting, earlier scheduled for March 29-31, was postponed following the devastating Tsunami in the Indian Ocean last December. The meeting, which is likely to be the final round of talks between seven South Asian countries for adopting the SAFTA on time will mainly focus on rules of origin along with finalising the country sensitive list, technical assistance (TA) and revenue compensatory mechanism for the least developed countries.

“The proposed meeting will try to finalise outstanding issues such as rules of origin and the sensitive list, among others,” said Prachanda Man Shrestha, joint secretary at the ministry of industry, commerce and supplies. The SAFTA sensitive list and rules of origin are two crucial aspects of the regional free trade area pact, on which member countries are yet to agree.

The Committee of Experts’ needs to settle these issues by 2005, as the 12th SAARC Summit has already endorsed the enforcement of SAFTA from 2006. Committee of Experts’ , a committee of commerce joint secretaries and senior commerce officials of SAARC member countries, has been conferred to resolve issues relating to pre-entry requisite for free trade agreement (FTA), has been organising such meetings from time to time in order to pave the path for easy entry in SAFTA from January 1, 2006.

“A proper identification for origin of particular goods is vital in free trade agreement and the issue of rules of origin tops the agenda,” said Shrestha, adding that the issue is expected to be resolved within the stipulated time. The issues endorsed by Committee of Experts’ will be presented at the meeting of commerce secretaries and then to the ministerial meeting. Once the ministerial meeting endorses the proposals, the decisions will come into effect. According to ministry of industry, commerce and supplies sources, Nepal has already prepared a country sensitive list, with about 1,500 goods. According to SAFTA protocol, non-Least Developmnent countries will bring down their custom tariff rate to 20 per cent, while Least Developmnent Countries will slash their average tariff rate to 30 per cent during the first phase between 2006-2008.

The non-Least Developmnent countries will then have to bring down their tariff level to between 0 and five per cent by 2009 while Least Developmnent Countries (LDCs) will have to do the same before 2016. Meanwhile, the seventh Committee of Experts’ meet will begin on March 22-24 in Male, Maldives. The meeting is likely to finalise the SAFTA sensitive list. A sensitive list contains tradable items that would not get any tariff concession in SAFTA, which was signed by the SAARC members countries in January last year.