KARACHI, Aug 22: Less than twenty days are left for the WTO’s ministerial meeting on September 10, at Cancun, Mexico. The business community of the country is confused and nervous over what might transpire from the meeting.

There anxiety, however, is higher as they feel they are not in full knowledge of how the government plans to tackle different issues directly effecting their exports, production and market access.

Despite the fact that Commerce Minister Humayun Akhtar Khan during a recent meeting with senior economic writers at the EPB offices disclosed the official position relating to different issues to be taken up at the WTO. He said that the strategy paper had been finalized and an approval would be sought from the ECC and the cabinet prior to attending the meeting.

However, there is general despondency amongst business circles who feel that country’s economic stakes are vulnerable to unforeseen developments that may take place at the Cancun ministerial conference.

“I cannot say anything about the government preparations for the forthcoming WTO meeting at Cancun, but for sure I can say that the Ministry of Commerce did not take any stakeholder into confidence so far,” a leading industrialist said.

The business community, he said, was having sleepless nights as they were worried about their respective interests which were directly related to the WTO, particularly when textile quotas would cease to exist from January 1, 2005.

“We do not know what posture the government is going to take at the WTO Cancun meeting, if it would take offensive or defensive stance, but the most important factor is that only good negotiators come out of conference halls thumping their chests.”

A leading textile exporter said that two years moratorium sought on anti-dumping duties in Doha WTO round was an issue that directly effects the country’s exports. “As our country do not have fiscal space,” he said, “we could not afford to give subsidy as was being given by China and India.”

It is true that no country exposes its position ahead of the conference, but any preparation made without involving stakeholders is definitely going to put the negotiations on a weak platform as others will take advantage of their weaknesses, he added.

There is an issue of licensing TRIPS (Trade Related Intellectual Property Rights) on which the US and the European Union hold different positions.

But strangely the issue of TRIPS is presently a cause of friction between three ministries — Ministry of Education, Commerce and Industries. The Ministry of Education is fighting to control the subject of copyrights and the Commerce is fighting over trade mark and the Industries over patents and industrial designs.

If this is the position who knows what position “our government will be taking at the WTO ministerial conference”. It is more frightening that the government in the Trade Policy 2001 suggested for the formation of a regulatory body — Pakistan Intellectual Property Rights Organization (PIPRO) — but this could not be formed as it still awaits legislation.

The automobile sector is keeping its fingers crossed because under the TRIMS (Trade Related Investment Measures) there will be no compulsory deletion programme from the government side. The extended period for deletion is expiring on December 31, 2003. “But the question is what position our negotiators will take on this important issue at the WTO conference, will they seek extension or accept it which would mean a death to vendor industry?” the exporter said.

Similarly, the customs authorities all over the country still evaluate imported goods on the basis of Import Trade Price (ITP), whereas under the WTO it has to be on invoice based. This means that at any given time they will be caught because the matter is already time barred.

Furthermore, the government purchases and other deals are also supposed to be transparent, but it could be easily stated that not much have been achieved here as well.

In order to face the impending challenges, particularly arising out from import duties most of the countries have formed regional trade blocs. The WTO allows such blocs. But unfortunately so far Pakistan has failed to enter into any such trade bloc.

Even the US has a regional bloc — NAFTA (North America Free Trade Agreement). This is directly benefiting Mexico that could export at zero duty to US markets. In order to counter this situation countries like Pakistan will have to seek reduction in duties which are presently as high as 12 per cent.

Under multilateral negotiations, alliances and trade blocs are formed and it is yet to be known that with which country Pakistan has make such arrangements to protects its vital economic and trade interests across the globe.

While entering into multilateral negotiations, India normally takes tough stand but tries to gain bilaterally on adopting soft position and this has been a success story for them so far. As a result of this, some experts see that India may benefit from the US in trade through the axis of Israel.

On the other hand Pakistan has already reduced its custom tariffs (stated to be under IMF conditionalities) and should seek some benefit from the WTO’s ministerial conference. However, only time will unfold what strategy “our economic planners have taken to face the situation at the Cancun conference where all nations will be defending their own interests.”