World | Updated Aug 01, 2006 at 08:28am IST

Pakistan and 7/11 derail SAFTA

Parul Malhotra, CNN-IBN

Dhaka: The meeting of the SAARC foreign secretaries ended in a deadlock on Monday.

The one stumbling block was Pakistan, which refuse to agree on the South Asian Trade Agreement (SAFTA), and this time India has not refrained from giving proper reply.

India has blamed Pakistan's top leadership for breach of trust.

"All that effort has now become infructuous because Pakistan has no intention to honour an understanding solemnly agreed to by all member countries," said Foreign Secretary Shyam Saran.

Under the terms of South Asian Free Trade Agreement, all SAARC countries will liberalise on all tariff lines except those specifically agreed upon.

But with respect to Indian imports, Pakistan wants to limit that benefit to only 700 items.

Shyam Saran expressed his doubts on not just Pakistan's commitment to economic cooperation but also their commitment towards peace in view of the 7/11 blasts in Mumbai.

"Pakistan's response has been that they are doing all that they can with regard to control of these elements. But, we have expressed our concerns and we hope that these concerns will be properly addressed," Shyam Saran said.

"Our position is very well known that if there are any leads then we are ready to cooperate with the investigations and that position remains," said Pakistani Foreign Secretary Riyaz Mohammad Khan.

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