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Pakistan needs a free trade agreement with the United States to help fight poverty that fuels extremism, Commerce Minister Humayun Akhtar said on Tuesday.

President Pervez Musharraf "feels very strongly the very strong political ties between Pakistan and the United States should also include economic ties," he told reporters before a meeting with US Trade Representative Rob Portman.

"(Musharraf) feels that in order to remove poverty, which is essential for curbing extremism in that part of the world, Pakistan needs market access and the United States being one of the largest trading partners should give that access to Pakistan," the minister said in Washington.

Musharraf asked US President George W. Bush to begin free trade talks at a New York meeting in September, repeating a request he first made in 2004, Humayun said.

Pakistan already is negotiating a bilateral investment treaty with the United States, which could be a stepping stone to a free trade deal. The two countries should set a deadline for finishing those talks next year, he added.

"The entire trade and economic relationship between the United States and Pakistan should not depend upon the issue of textiles. It should be looked at as a restraint which both the governments should resolve to remove rather than a stumbling block that nobody dares to climb," the minister said.

The US State Department's warning for Americans not to travel to Pakistan also is hurting economic ties between the two countries, he said, adding Pakistan is looking forward to a possible visit by Bush next year and hopes he will bring a high-level business delegation with him.

On WTO, Humayun said developing countries should stop waiting for the European Union to make a better agricultural offer in world trade talks and engage more seriously in negotiations on manufactured goods and services.

"I think that it is appropriate to say that rather than waiting for the European Union to improve their offer, member states should be more forthcoming with the negotiating room they have in their respective areas." he told reporters.

"I think that countries like Brazil, India should be more forthcoming in (the goods negotiations) as to what to they intend to do. I think we do not have time anymore to clutch our cards too close to our chest. It's time that we lay (them) on the table," the minister said.

Copyright Reuters, 2005


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