India recently increased tariff by 50 per cent on pea imports from Canada; and this latest trade action by New Delhi is expected to escalate the ongoing trade spat with Canada on fumigation requirements for export of pulses. China is also not compromising on fumigation.
Recently, Canadian Department of Foreign Affairs, Trade and Development approached Pakistani High Commission in Ottawa and sought assistance to resolve the trade issue affecting Canadian exports of grain, oil seeds and pulses with a consigned valued of $ 900 million in 2016.
From January 2012 up to February 2017, Canadian exporters were exporting to Pakistan under terms of an informal waiver agreed to between the Canadian High Commission and Pakistan''s Department of Plant Protection that allowed Canadian shipments to be fumigated in Pakistan.
In mid-February 2017, the Canadian Food Inspection Agency (CFIA) received a notice of non-compliance from the DPP for a Canadian canola shipment as the accompanying phytosanitary certificate did not indicate that fumigation had occurred. On March 15, 2017, DPP confirmed to the Canadian High Commission in Pakistan that the January 2012 informal waiver no longer applied.
Canadian Department of Foreign Affairs, Trade and Development argues that the abrupt change of policy has created considerable uncertainty for Canadian exporters of grain, oilseeds and pulses.
Canada had proposed that DPP should initiate discussions on a science-based solution and for the interim period, a temporary accommodation be approved that would allow continued imports of Canadian grain, oilseeds and pulses without disruption, pending implementing of a last solution.
The sources said, Pakistan'' High Commissioner to Ottawa (Canada) has written a letter to Ministry of Foreign Affairs, Ministry of National Food Security and Research and Ministry of Commerce and Textile on the reported "secret mission" of DPP officials to Canada.
The sources quoted the High Commissioner as stating that a 3-4 member delegation from Department of Plant Protection (DPP), Karachi, visited Canada (Saskatchewan province) regarding verification of fumigation process for import of grain, oilseeds and pulses from Canada to Pakistan. However, neither the High Commission of Pakistan Ottawa, nor Consul General in Montreal responsible for commercial matters or the Consulate General of Pakistan, Vancouver, had any prior information on the visit.
According to sources, High Commissioner in his letter intimated to Islamabad that, coincidently, he was on an official tour to Regina, Capital of Saskatchewan province, recently when the DPP delegation was also in town. He got information from a Canadian private firm exporting grains to Pakistan that the Pakistani delegation was in town. However, his (High Commissioner''s) personal efforts to contact the delegation did not succeed.
" It would have been better if the delegation had co-ordinated the visit in advance and shared their views with the High Commission," the sources quoted the High Commissioner as writing in the letter.
High Commissioner, the source said, has requested Islamabad to share the outcome of the visit with the Ministry of Commerce, Ministry of Foreign Affairs and the High Commission for further follow-up action, if any.
This newspaper sent a message to Secretary National Food Security and Research, Fazal Abbas Makan to get his viewpoint, however, he did not respond till the filing of the story. Secretary Commerce, Younus Dagha when contacted said that he had not seen any such letter from the Pakistani High Commissioner as he was in Karachi and had just arrived in office.
Copyright Business Recorder, 2017