ISLAMABAD, March 25: Pakistan has called for elimination of all sorts of tariffs on agriculture exports to quota countries and suggested that special safeguard measures (SSM) should only be allowed to the developing countries on all farm products under the WTO agreement on agriculture.

The para-wise comments on the first draft modalities of the agreement faxed on Tuesday to the ongoing WTO meeting in Geneva, Pakistan also raised reservations on the trading rights and suggested that foreign national importers should not be treated at par with the national entrepreneurs either of government or non-governmental.

Pakistan is also against any direct food aid to the poor countries and suggested that these should only be financed by a pool of resources of developed countries to avoid any ambiguity in the sale proceed of agriculture commodities.

Sohail Mohammad Khan, secretary of the National Committee on WTO Agreement on Agriculture, told Dawn in the preparation so far made under the WTO agreement, Pakistan would gain only one per cent through trade liberalization while India would gain over 70 per cent benefits.

Mr Sohail said formal negotiations on the WTO agreement had been postponed, which were earlier scheduled for March 24-25, and now the US trade minister would brief the trade ministers and Geneva-based ambassadors of developing countries to explain the US point of view on the subject.

He said Pakistan had proposed that tariff reduction on processed products should be at least 2.5 per cent to capture tariff escalations, tariff peaks in developed countries and not by a factor of 1.3 per cent as envisaged under para 8 of the agreement.

He said developed countries had complex tariff structure, which comprised on ad valorem tariff, specified tariff, compound tariff, mixed tariff and season tariff that differed from the country to country. The EU has 42 per cent and Switzerland has 90 per cent non-ad valorem tariff lines.

Pakistan has also proposed that a harmonized tariff structure for all the WTO-member countries should be adopted. In the proposed method highest

Pakistan for and lowest entries should not be excluded and the time period for tariff equivalent should be not more than three years.

Pakistan wanted specific market access facilities and proposed that developed countries should grant full tariff concessions to the products of developing countries, which they would replace against illicit narcotic crops.

It has contended that benefits provided through preference schemes were nominal for developing countries compared with the benefit which developed countries would get from the exception of reduction commitments. The limit of 25 per cent is on a very higher side and should not be more than 10 per cent.

Pakistan is in favour of complete abolition of all sorts of quota tariffs and has taken a stand that quota tariff was against the principle of market economic system of the Most Favoured Nation (MFN).

Pakistan has opposed the para 25 of the draft modalities on the ground that through this provision developed countries would get further 10-12 years to protect their agriculture from the export of developing countries.

Pakistan has also opposed any special safeguard measures (SSM or SSG) by developed countries because due to this provision the principle of open and fair market economy could be followed.

It, however, proposed that SSM should be allowed only to developing countries and should be applicable on all agriculture products. In finalization of possible new safeguard mechanism for developing countries they should be allowed same safeguard provisions as provided to developed countries under article 5 of the agreement.

Pakistan has opposed the continuation of ‘blue box support’ for further five years and has stated that either this should be completely eliminated or developed countries should start 50 per cent reduction from the first day of implementation and remaining in five years in equal instalments.

On its comments on attachment 1 of the draft modalities under the agreement, Pakistan has stated that at present it is not enjoying tariff on any agriculture exports to quota countries.