September 4, 2003	Thursday	Rajab 6, 1424

ISLAMABAD, Sept 3: Commerce Minister Humayun Akhtar Khan said on Wednesday that Pakistan would be unable to get further extensions from the World Trade Organization for continuation of its deletion programme to provide protection to the local auto manufacturers.

According to the WTO agreement on TRIMs, which came into force in January 1995, all WTO members were required to phase out trade distorting measures such as deletion programmes. Developing countries were given an extra five years time to do so. Pakistan has already got four years extension in its continuation of deletion programme, which was going to expire by the end of next year.

The minister was speaking at the national consultative workshop on pre-Cancun consultation on Pakistan’s position in WTO. The workshop was jointly organized by Smeda and the WTO Watch Group — an association of non-governmental organization (NGO).

Many developing countries wanted to get rid of the programme, he said and added now it seemed very difficult that “we would get any support from other member countries for getting further extension in the programme”.

He said right now Pakistan was the only country trying to pursue the continuation of the programme. The minister, however, said that the auto sector was aware that under the WTO commitment the tariff protection would be scaled down within a specified period of time.

Mr Humayun said that Pakistan would not be affected by reduction commitments in the areas of domestic support and export subsidies provided to agriculture sector mostly by developed countries.

“On the other hand, reduction in tariffs on agriculture products in developed countries would provide us an opportunity to export our products in their markets,” he added.

Regarding standards, he said it should be realized that the importing countries used these standards even without the WTO agreement.

He said in case the standards of an importing country were unjustified, “we have the option to take the matter to dispute settlement process at the WTO”.

The minister said that tariff would not be reduced to zero in 2005. The current negotiations on the market access was aimed at reducing tariffs, but it would be up to the member countries to agree on the rate of reduction on the tariffs, he added.

The minister said that in Pakistan tariff was reduced because of obligation under IMF. He said in fact the lowering of tariffs in the last few years was due to structural adjustment programmes to improve competition, rationalise tariffs and cater to consumers’ interests.

Answering a question, he said that draft law on Pakistan Intellectual Property Rights Organization (PIPRO) would be soon sent to the cabinet for approval.

In reply to another question, the minister said that imports from China was mostly affecting the country’s informal sector like footwear industry.

APP adds: While inaugurating the workshop, Industries and Production Minister Liaquat Ali Jatoi said only internationally competitive industries would survive under the WTO regime.

The minister said that his ministry was encouraging those sectors that required zero protection from the government so as to avoid the problems for Pakistan in these sectors in the wake of WTO regime.

Mr Jatoi pointed out that the real challenge for developing countries like Pakistan was to look for ways and means where Pakistan could avoid the risk of losing heavily from the final liberalization of trade.

That, if happens, will have adverse effects on industrial base, which is the backbone of Pakistan’s economy, he added.

Mr Jatoi disagreed with the idea that globalization was a disadvantage. “I rather take it as an opportunity where Pakistan’s inflexibility will be replaced by vitality,” he commented.

In this regard, Pakistan needs focused strategies for textiles, engineering, footwear, leather, fish, foodstuffs and agricultural sector, he added.