KARACHI, July 22: Federal Minister for Commerce Humayun Akhtar Khan on Tuesday expressed his apprehensions that developed nations under the cover of non-tariff barriers would try to stop the flow of goods from developing countries when the WTO regime fully matures in 2005.

Addressing a press conference at the EPB head office said that under WTO agreement member countries were not bound to fix customs tariffs and free to select their own bands of duties with a maximum tariff of up to 98 per cent.

Humayun Akhtar said that before going to Mexico for WTO’s ministerial round approval would be sought from the ECC and the cabinet for all matters and positions to be taken with regard to agriculture, non-agriculture, services, etc., by Pakistan in this important meeting.

He said presently the country under the IMF conditionalities was bound to have a low bands of customs duties with minimum at 5 per cent and highest at 25 per cent. The minister clarified that the WTO did not lay down any conditions on tariffs and it was only because of IMF’s PRGF (Poverty Reduction and Growth Fund), which ends by September next year we have to keep the present duty structure.

The commerce minister said, “once the PRGF comes to an end we can fix any duty rate specially when we are in an urgent need to allow import of capital goods at zero rated duty which are presently being imported at 5 per cent duty.”

However, he said under the new trade policy the government has exempted all agriculture and environment machinery from sales tax which stands at 15 per cent.

Humayun Akhtar Khan said that it was imperative for the developing countries to counter the non-barrier tariffs of the developed nations by entering into bilateral agreements, Free Trade Agreements and efficiently using of trade diplomacy.

He said the WTO also allowed subsidy of up to 10 per cent to Pakistan but the country could not avail this facility but the national exchequer could not afford it.

Dumping of goods by other countries in the local market, he said could be taken care provided the stakeholders of these commodities approach the NTC who is competent enough to initiate anti-dumping proceedings against a country indulging in dumping of its goods.

He said: “we are ready for the compliance with the WTO agreement on TRIPS — trade related intellectual property right— and added that substantial progress has been made in this field.

The establishment of Pakistan Intellectual Property Rights Organization is already approved and necessary legislation will come soon.