US, Pakistan Comment On TIFA Meeting

by Mike Godfrey, for LawAndTax-News.com, Washington

30 April 2009

Senior Representatives of the governments of the United States and Pakistan have met at the Office of the US Trade Representative in Washington for the third meeting of the United States-Pakistan Trade and Investment Council, the implementing body of the US-Pakistan Trade and Investment Agreement (TIFA) that was signed by both countries in 2003.

The meeting demonstrates the continuing close cooperation between Pakistan and the United States on economic, trade, and investment issues. It manifests the importance both countries place on strengthening a long-term relationship that broadens cooperation beyond military and security ties to programs that promote the private sector and economic development.

Over the long term, solid economic, trade, and investment policies will create jobs, boost investment, and build sustainable development. The TIFA process also supports the shared objective of building closer people-to-people ties between the two countries.

Discussion of some of these issues will continue at the May 6-7 US-Pakistan-Afghanistan Trilateral meetings in Washington.

The TIFA process has been a key part of a sustained and multi-faceted high-level engagement between the two governments, focused on tackling major economic, trade, and investment challenges. The process is designed to guide and complement the practical work that officials from a wide range of agencies in both our governments carry out daily.

At the same time, both countries are strongly encouraging private sector input that highlights the challenges that businesses and investors face, so that efforts are focused on practical solutions that effectively address these issues, helping to create jobs and draw private investment. Strengthening cooperation is particularly important during this difficult global economic downturn.

The discussions covered four areas:

• Pakistan’s preparations for implementing Afghanistan and Pakistan Reconstruction Opportunity Zones (ROZ), for which legislation is now pending in the US Congress;
• South and Central Asia regional trade issues;
• investment climate issues, including bilateral trade issues, Pakistan’s privatization plans, intellectual property rights, and current programs in Pakistan of the US Export-Import Bank, Overseas Private Investment Corporation, and US Trade and Development Agency; and
• a review of ongoing agricultural cooperation programs by the US Department of Agriculture and US Agency for International Development, and ideas for expanding agricultural cooperation.

Also discussed was the importance of improving trade among South Asian neighbors and between South and Central Asia. Keeping in mind the continuing strong commitment of the United States to support Pakistan and Afghanistan, the parties also noted the need for Pakistan and Afghanistan to make required improvements to the Pakistan and Afghanistan Transit Trade Agreement that are currently under consideration.

The United States presented data on Pakistan’s usage of the US Generalized System of Preferences benefits, and Pakistan provided an update on progress of the South Asia Free Trade Agreement (SAFTA).

The parties also discussed a full range of investment climate issues, including intellectual property rights concerns, and privatization of state-owned enterprises. The US Export-Import Bank, Overseas Private Investment Corporation, and US Trade and Development Agency apprised of their programs in Pakistan and discussed areas for possible future cooperation

The final session on agriculture reviewed ongoing US Department of Agriculture and US Agency for International Development programs in Pakistan, gave suggestions for economic reforms to modernize the sector and improve productivity, and ways in which the level of agricultural trade between the countries might be increased.

Recommended