ISLAMABAD (July 07 2009): In an extraordinary development, the Cabinet has directed the Commerce Ministry to revisit the agreement on trade in services with China, signed on February 21, 2009 at Wu Han during the visit of President Asif Ali Zardari, official sources told Business Recorder. "Stakeholders in private business and chambers of commerce should be involved, and the agreement be thoroughly reviewed to ensure that its provisions did not supersede or come in conflict with agreements already signed", sources quoted the Prime Minister as instructing Commerce Minister Amin Fahim and Suleman Ghani. Sources said that Cabinet was informed that the agreement had already been signed on February 21, 2009 during the visit of the President, with the approval of Prime Minister, with the direction to place it before the Cabinet. The agreement aimed at improving the investment regime in services sector and promoting joint venture to encourage transfer of technology and create jobs. The Cabinet was informed that the provisions of the agreement complied with General Agreement on Trade in Services (GATS). It was stated that interests of domestic stakeholders were protected in the Agreement, which fully conformed to domestic laws. Sources said attention of the Commerce Ministry was invited to the negative balance of trade with China and it was emphasised that measures should be adopted to derive benefit from the agreement and protect Pakistan\'s economic interests. According to sources, Commerce Minister was further directed that Ministries of Finance and Privatisation had not been consulted on issues carrying legal implications. The Cabinet, however, was of the view that as China is a time-tested friend of Pakistan, such initiatives were welcome but implementation details must be scrutinised to secure equitable access of Pakistani goods and services into China. Official documents available with Business Recorder show that notification to implement the agreement will be exchanged with China, after the signing of the Agreement, on a date convenient to both sides. "Implementation of the agreement by all stakeholder Ministries and the placement of agreement along with its annexes on the websites of all stakeholder Ministries and Departments has already taken place as claimed by the ministry," the documents say. While approving these proposals, the Prime Minister also directed that the proposed agreement should be placed before the Cabinet for information in its subsequent meeting.In accordance with Article 83 of the bilateral Free Trade Agreement (FTA), negotiations on an "Agreement on Trade in Services" were initiated. The agreement was concluded after five rounds of negotiations with China on December 3, 2008. THE AGREEMENT ON TRADE IN SERVICES WAS NEGOTIATED IN THE FOLLOWING MANNER: (i) the agreement is based on positive list concept ie bilateral commitments made in specified sectors & sub-sectors; (ii) WTO plus - building upon multilateral commitments of both countries and Pakistan\'s initial and proposed revised offer in the ongoing Doha Round; (iii) in consultations with all stakeholders; (iv) all domestic regulations relating to limitation on national treatment were kept intact; (v) in areas where no domestic regulations have yet been finalised by the stakeholder Ministries, room has been kept to make such regulations, which will also be applicable to China. The Commerce Ministry claims that the following objectives were kept in view while negotiating the Agreement with China: (i) to integrate economies of Pakistan and China for mutual benefits; (ii) to provide a predictable investment regime in the services sector, especially in infrastructure, computer and related services, educational services, research and development, tourism, sporting services and environmental services like sewage and cleaning services; (iii) to promote joint ventures to build the capacity of domestic service suppliers, transfer of technology and creation of new jobs in Pakistan. According to the Ministry, during negotiations of Pakistan\'s schedule of specific commitments, all stakeholder Ministries and Departments were taken on board. The interests of the domestic stakeholders will remain protected as for the Chinese investors all Rules, Regulations and restrictions like purchase of land, securing work permits and the visa regime of Pakistan relating to Foreign Service supplier are an integral part of Pakistan\'s offer.