Expert warns of non-tariff barriers: Quota-free regime
By Mubarak Zeb Khan
ISLAMABAD, Dec 28: Pakistan will face a series of non-tariff barriers, particularly the social compliance issue, which might restrict the entry of its products in the market of the developed countries.
As textile quotas would be phased out from January 1, the cost of social compliance would remain a serious non-tariff trade barrier for our exporters, this concern was expressed by Dr Abid Qaiyum Suleri, an eminent researcher of WTO agreements.
The social compliance issue - related to labour, environment and standard of products - was not part of the WTO agreements, but a major demand of buyers in the developed countries which would be used as a non-tariff barrier to restrict exports from the developing countries like Pakistan.
We would be accused of "social dumping" as most of our textile and garment manufacturers are not able to take care of "Western" social standards such as minimum wages, paid maternity leaves for women workers, provision of child-care facilities at workplaces, issue of under-age workers, use of environmental-friendly dyes, maximum working hours, issue of effluent and industrial wastes, etc," Dr Suleri told Dawn.
He said Pakistani exporters would be accused of artificially reducing their cost of production by not investing in social and environmental compliance. With the end of the quota regime, the exporters would have to compete on quality, cost and social standards.
Although social standards were not part of WTO agreements, consumer organizations as well as non-governmental organizations in the North were advocating for and promoting the environmental and social standards, he added.
Pakistan should strongly oppose the developed countries' move to bring the issues of child labour and bonded labour to the WTO, which would seriously affect the trade of developing countries.
The rich nations could easily make an excuse that there was a bonded labour in agriculture sector due to which they would not buy cotton or rice from Pakistan. Other areas where Pakistani exports might be affected due to the labour standards included textiles, sports goods and carpet-weaving industry as these sectors involved intensive labour.
Talking of remedial measures, Dr Suleri was of the opinion that at international forums, Pakistan should oppose any linkage between trade and social compliance.
However, at domestic front, our industrialists should realise the importance of social dimensions of globalization, he said. He argued that economic development should accompany human progress and it was time to get ourselves prepared at domestic front. "Labour ministry, social welfare department and environmental protection agencies should play their due role in this regard," he maintained.
