By Dr Zulfiqar Ahmad Gill, Asif Maqbool and Dr Abedullah
THE main barriers to a free agriculture trade are high import duties, domestic financial support programme given to farmers and the maintenance of export subsidies. Restrictive and trade-distorting sanitary and Phytosanitary (SPS) regulations are also considered obstructions. A country can control the speed of import liberalization but cannot determine its export growth which depends on the prices of existing products.
The developing countries have suffered from serious declines in terms of trade and also due to infrastructure, and the human and enterprise capacity for new exports. This is long- term and not an easy process.
Implementation of the World Trade Organization (WTO) regulations have created a competitive and compelling environment for Pakistan’s agriculture which needs to be dealt with utmost urgency.
In the present scenario, latest technologies, mass communication and market accessibility will determine growth prospects of economies where Pakistan is far behind.
Ours is an agriculture based economy where considerable amount of export is based on farm products. This sector is facing serious threats from the WTO regime. The current situation shows that Pakistan is unlikely to benefit in the short run. Monetary losses may ensue due to a fall in market prices, which at farm level, will remain the same. Only the middleman will disappear.
The application of the SPS is most important as it relates to food safety, and animal and plant health. The WTO agreement envisages the countries to take health protection measures within their borders based on internationally established guidelines and risk assessment procedures. Exporting countries are required to follow the international standards. It is necessary for farmers to use the ISO certified products for pesticides, insecticides and seeds. We are bound to use certified products for fulfilling the pre-requisite of international standard.
Another WTO clause is the Trade-Related Intellectual Property Rights (TRIPS). The owners of patented products have an exclusive right to make use of this clause. Farmers are bound to use the ISO certified seeds and agriculture inputs provided by the multinational companies (MNCs). This will limit production as the seeds may or may not suit conditions of the land where these are being used. Before implementation of the WTO, farmers could share the agricultural inputs between themselves but now they are bound to use inputs of the MNCs which are ISO certified. This will raise the cost of production.
Many countries are using the genetically modified (GM) products and we the indigenous ones. Our resource-restrained farmers, therefore, are unable to compete with them. As no support will be provided by the government in buying the harvest, therefore trade liberalization will have a negative effect on small farmers who mostly use conventional and traditional methods.
Technology and information are key things in the WTO regime. Hence Pakistan should give more emphasis on providing its farmers the latest technology and information.
As Pakistan is an agricultural country, it possesses basic infrastructure such as fertile land, irrigation water, hard working farmers and certified verities of seeds. The need is to utilize these fully which is possible only by a firm will of our planners and policy makers.
We lack management at the top level. The mismanagement has forced us to import wheat which is the basic need of every citizen. Pakistan has an edge in rice, cotton and fruits export. Raw cotton is mainly directed to the Middle East. It can enhance rice exporting capacity by searching new markets in Korea, Japan and Indonesia. The government should upgrade its marketing system to reorganize import-export potentials. Quality and standards should be enhanced.
Literacy and awareness among farming community are lacking which have kept them unaware about the developments and rules and regulations taking place in the world. The government should arrange plans and policies for the removal of these snags.
What we need now is to reduce our cost of production because our labour is cheap. The government should take care of ever increasing utility charges and surcharges which push the cost of production at upper levels thus making our products uncompetitive in international trade.
