New Delhi: Strongly favouring establishment of a "South Asian Union", India on July 7 assured Pakistan that it had no intention of swamping its economy through trade, even as Islamabad made a fresh call for resumption of "composite dialogue" to resolve all outstanding issues with it, including that of Jammu and Kashmir.

New Delhi was prepared to work for reasonable levels of uniform value addition for all countries in South Asia, and for harmonisation of tariffs, External Affairs Minister Yashwant Sinha said, addressing a conference of the India-Pakistan Chamber of Commerce.

In his first public engagement after his arrival in Delhi last week, Pakistan's High Commissioner designate Aziz Ahmad Khan, who also addressed the conclave attended by businessmen from the two countries, told reporters, "We should have the composite dialogue to tackle all outstanding issues between the two countries including that of Jammu and Kashmir."

Sinha said, "...Even as we implement fully the SAARC (South Asian Association for Regional Co- operation) charter, we should start thinking of a South Asian Union.

"If other regions could achieve this kind of Union despite political, social and economic differences, there is no reason why we should deprive our people of this opportunity."

While declaring India's commitment to the concept of a South Asian Union, Sinha said, "Let me assure you that we in India have no intention to overwhelm Pakistan's economy through trade. Our aim is only to have a normal trade relationship."

PTI