KARACHI, June 11: Despite the fact that all the textile quotas would come to an end on December 31, 2004, most of the countries have so far phased out 25 to 30 per cent quotas.

This was stated by Dr Manzoor Ahmad, ambassador and permanent representative to the WTO, Geneva, at a seminar on "Impact of WTO on Pakistan's economy," jointly organized by four business forums, Pakistan-Belgium, Pak-German, Pak- Italy and Pak-France Business Forum.

Speaking at length on various aspects of the WTO and its organizational formation on Thursday evening at a local hotel, Dr Manzoor Ahmad said that it has 147-member states which have equal rights because each member has one vote.

He said even a big economy like the United States for that matter has single vote and no move could be adopted without full votes from all the member states. However, he said it was being wrongly reported in the local media that WTO regime would start from January 1, 2005.

Undoubtedly, the textile quotas would come to an end from 2005, and the WTO regime based on various agreements reach between the member states was going on since 1995 when it was established to replace GATT.

He said that WTO, with $100 million budget and 500 staff, was a multilateral government-to-government orgnization. It deals with matters related to tariffs, TRIPs and TRIMs, trade and appeals.

Dr Manzoor did not agree with general perception that Pakistan signed the WTO agreement without doing proper home work, and said it took seven years to sign the agreement.

It was unlikely that most of the issues would be resolved in next couple of WTO rounds particularly pertaining to lowering of tariffs by developing countries and removal of subsidies on farm products by developed countries.

The developing countries were also seeking changes in WTO rules that governed such issues like anti-dumping, injury and dumping margin which could be imposed upto two years. He said that the US was opposed to bringing any change and making such rules more difficult to use.

Similarly, there is a service sector which was lately included in the WTO regime but developing countries wants that the developed nations should allow shift of manpower from their countries to industrialized countries for fulfilling any contract or job.

Again, he said non-tariff barriers or social compliances were not WTO subject rather they were the issues related to individuals or buyer and seller. Responding to a question, Dr Manzoor Ahmad said under an understanding reached in 1995, Pakistan along with eight other countries were given five-year period for keeping their deletion programme in automobile industry, thereafter he said it was twice extended for two years.

But now, he said Pakistan was only country in the world which was seeking further extension in TRIMS. Among others who were present included Razaq Bengali of Pak-German Business Forum, Aziz Memon of Pak-Italy Business Forum, Mohammed A Rajpar President of Pak-Belgium Business Forum.