ISLAMABAD, May 13: Pakistan Automotive Manufacturers Association (PAMA) and Pakistan Association of Automotive Parts and Accessories Manufacturers (PAPAAM) have signed a memorandum of understanding (MoU) aiming at providing protection to the auto industry following the elimination of TRIMs.

The MoU was signed by the representatives of PAMA and PAPAAM here on Tuesday at the auto-Xpo exhibition at a local hotel.

Secretary Industries and Production Akram Shaikh told Dawn that the government was also strongly pursuing the WTO to obtain extension for elimination of TRIMs upto December 31, 2005 to provide protection to the auto-sector.

Since deletion programme is considered important by auto industry and downstream vendor industry to develop local capacity of auto parts making, at the expiry of five years grace period, Pakistan sought seven years further extension.

After considerable efforts, they were allowed two years and then another two years’ extension subject to the condition that Pakistan would not ask for further extension.

Under the MoU, the Original Equipment Manufactures (OEMs) would continue buying the locally manufactured components from vendors, which are in regular supply at present.

The Vendors are bound to produce qualitative and competitive products at a reasonable prices to the OEMs. This MoU would ensure long term stability for the industry without any infringement of WTO rules.