ISLAMABAD, Dec 27: Pakistan will draw a list of items to be designated as 'sensitive products' to protect them against cheaper imports under the current negotiations on the agreement on agriculture.

The 148-member WTO countries will finalize an agreed formula for tariff reduction on agriculture products with a specific time line and cut in export subsides and domestic support by December 2005 as agreed in the July package of 2004.

Talking to Dawn, Pakistan's permanent ambassador to WTO Dr Manzoor Ahmad said the member countries had already started discussion on elaborating the terminologies and technical issues in the July framework at Geneva.

He said the WTO Trade Negotiation Committee was scheduled to meet in February 2005 to review the progress so far made in the areas of agriculture negotiations by the member countries.

Answering a question, he said that Pakistan in consultation with stakeholders would identify sensitive items for protecting them against the cheaper imports. However, he said that it was too early to mention that which items would be placed in the list.

Mr Ahmad said that in the quota-free regime there would be a win-win position for Pakistan. The ambassador quoting a recent study said that Pakistan was facing high freight costs for exporting goods to the markets of developed countries, which might reduce the competitive edge of the products over the products coming from other countries.

He said major textile exporting countries were actively making efforts in gaining market access through reduced tariffs and building strategic alliances. He said they were also working on greater trade facilitation and reduction of transportation costs.

"For making Pakistani products more competitive, it is necessary to make every effort to reduce the freight costs and remove hurdles causing delay in the swift movement of goods." Regarding the non-agriculture market access (NAMA), the ambassador said the member countries had yet to finalize any formula for duty reduction on the products.