KARACHI, March 11: Minister for Commerce Humayun Akhtar Khan said on Friday that Pakistan will be in a win-win position once the farm subsidies and domestic support of one billion dollars a day by developed countries are eliminated.
He said presently the Western countries are giving around $350 billion per annum in farm subsidy and domestic support to their growers. The minister said this amount stands even many times higher than the support given by them to developing nations.
As result of this support, he said a distortion is being created in the world market for farm products and countries like Pakistan could not market their products.
A ceremony was held in honour of Commerce Minister Humayun Akhtar Khan by former chairman Pakistan Rice Exporters Association (Reap) Abdul Rahim Janoo who also declared him as “best dedicated commerce minister of Pakistan.” Mr Janoo also gave the minister gold medal in recognition of his services.
However, the minister said that Doha Development Round is going to take place late 2006 or early 2007, and hopefully this issue will be resolved once for all and thereafter, Pakistan will have a win-win position for its farm products in the world market.
Once the developed countries remove subsidy and domestic support on their farm products, he said Pakistan and other developing countries mostly agro-based economies will be able to get better price for their farm products and it will also have a positive impact on
GDP.
But the minister cautioned that this would also have a negative effect because when a country like Pakistan would import such as wheat or any other farm product it would have to pay higher cost and price which is presently depressed owing to subsidy and domestic support given by western nations to the growers.
The rice exporters expressed their full confidence in the minister’s ability to tackle their issues and Mr Janoo said that recent development for which Humayun Akhtar Khan has helped rice exporters by getting around 400 containers loaded with around 10,000 tons of rice released at Mumbassa sea port at old duty rates was a great achievement.
The minister also briefly spell out developments which took place during the course of his negotiations with Kenyan authorities and said, “He made it clear that if the duty was not reduced to at least at previous level then Pakistan will have to look into other options.”
He said he had told Kenyan authorities that when they were talking about FTA, enhancement in customs duty at this stage would damage the interest of both the countries.
Humayun Akhtar Khan said that the three East African countries, including Kenya have joined Customs Union from January 1, 2005, under which the customs duty was enhanced but “we told the Kenyan government to use its good office and try to convince other countries as well to reduce customs duty at the earliest.”
The minister also briefly discussed FTA with Sri Lanka and said that this will help us to have modest access to free
market and urged the rice exporters to launch and introduce basmati rice in Colombo as well.
He agreed with Mr Janoo that there was greater need of research and development of rice seed because such varieties in Basmati rice should also be developed which could be parboiled and exported to Middle East market. The minister urged exporters to put in their efforts to recapture the Middle East market.
