Interaction between govt departments emphasized: WTO challenges
By Mubarak Zeb Khan
ISLAMABAD, Feb 3: Speakers at a seminar emphasized prior interaction among the government departments on the issues to be negotiated at the WTO forum to protect the interest of the domestic industry and the consumers.
The seminar entitled "WTO and Pakistan: 2005 and Beyond" was organized by the Institute of Policy Studies (IPS) here on Thursday.
The speakers said lack of coordination among government departments had resulted into failure at many fronts like the finance ministry under commitment with donor agencies had brought down maximum tariff to 25 per cent without getting any benefits out of it, while the commerce ministry was not taken into confidence on the issue, which resulted into a greater liberalization of the import regime making Pakistan a net importing consumer country.
They further observed that WTO carried both challenges and opportunities for Pakistan, depending on the level of our preparedness and our ability to perceive the emerging new world along with our negotiating skills.
Former chief economist Fasihuddin said that progress on Doha Development Agenda (DDA) had been slow. Though disagreements between the developed and the developing countries were profound at the Cancun Ministerial Meeting in 2003, nevertheless, it highlighted the flaws in WTO, he maintained.
He emphasized that with the quota-free regime and emergence of a new international trading system, the need for our preparedness and homework had become manifest. "We should study our strong points as well as our weaknesses and negotiate skill fully to safeguard our commerce, industry and economy," he said.
Referring to the textile sector, Mr Fasih noted that Pakistan could benefit from new openings if it could ensure quality and diversification of products and with homework before any round of negotiations.
Focusing on Pakistan's textile sector, former secretary and Chairman National Tariff Commission Masud Daher said the European Union had come up with GSP schemes and had levied conditions for other countries to join them. The USA, seeing the role of the rising China, had taken measures under which it can stop products of other countries and safeguard its own interests.
While the developing countries are being pressured to comply with new conditions, the US government subsidies for its farmers will continue to exist till 2009. Similarly, the EU countries give subsidies to its people that will last until 2013.
"This situation demands us to study how best we can serve our interests, how we can negotiate with these developed countries, and which blocs we can join to push for our agenda," he underscored. He called for quality and skill-oriented education and making use of latest technology.
He observed that Pakistan's investment of $4-5 billion in procuring textile machinery was a welcome step, but it was just a starting step because other countries like China and India had invested much more hefty amounts despite that these countries already had a large number of mills, looms and spinners.
Textile Minister Mushtaq Cheema talked about various policies and measures the government had taken to safeguard the country's economic interests. Referring to the establishment of the new textile ministry, he said it showed that the government had realized the importance of the textile sector.
The minister noted that there had been a realization of our past mistakes and the government had raised Pakistan's case everywhere. Replying to a question about the EU's anti-dumping duty on Pakistan, Mr Cheema said the ministry had fought fiercely for Pakistan's rights and it would continue to take up all matters at the relevant quarters.
IPS Chairman Prof Khurshid Ahmad said the nation was waking up to the WTO challenges but the response of our leadership had not been up to the mark. He welcomed the establishment of the textile ministry. "It would help in fully utilizing Pakistan's potential in the textile sector because it remains the backbone of our industry and is linked to agriculture," he added.
