14 March 2004	Sunday	22 Muharram 1425

ISLAMABAD, March 13: Pakistan has sought an extension for yet another two years for the implementation of trade related investment measures (TRIMs) in the country on the plea that auto industry needed some more time to adjust itself to cope with the new law.

Official sources told Dawn on Saturday that Islamabad had formally sent a request to World Trade Organization (WTO) secretariat seeking two-year waiver for implementing the TRIMs.

According to the WTO agreement on TRIMs, which came into force on January 1, 1995, all WTO member countries were required to phase out trade distorting measures such as deletion programmes. Developing countries were given an extra five years to do so.

At the expiry of five years grace period, Pakistan had sought a further waiver till December 31, 2003 subject to the condition that Pakistan would not ask for further extension in this regard.

The officials said since the deletion programme is considered important by auto industry and downstream vendor industry to develop relevant local capacities, Islamabad has requested for another two-year extension in the facility.

According to the officials, the ministry of industries and production has already phased out more than 200 such programmes in other industries such as electronics, electrical machinery such as washing machines, televisions, etc.

Already, in the case of Pakistani's automobile industry 50 to 70 per cent of the components are being locally manufactured. It is felt that if the auto-industry used more local parts, it would, in the long run, help bring down car prices.

On the other hand, the spirit of the TRIMs agreement is that it should be left to the industry concerned to source its components and that manufacturers should not be forced to buy from any specific sources.

According to the officials, on the basis of complaint filed by United States against India, it was decided by the WTO that India's deletion programme for auto industry was illegal and asked the Indian government to immediately implement the TRIMs.

The Indian government has complied with the WTO panel's decision. In view of this decision, now it seemed even more difficult for Pakistan to succeed in getting a further waiver.