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| May 24, 2005 | Tuesday | Rabi-us-Sani 15, 1426 |
Cabinet to discuss trade liberalization tomorrow
ISLAMABAD, May 23: The federal cabinet meets here on Wednesday to consider a 17-item agenda including further liberalization of trade in services as part of the WTO negotiations under the Doha Development agenda. The meeting, to be presided over by Prime Minister Shaukat Aziz, is likely to approve an amendment to the Federal Public Service Commission (FPSC) Ordinance 1977 withdrawing some responsibilities from the commission’s purview.
The meeting will also consider amendments to the Prevention and Control of Human Trafficking Ordinance 2002 and promulgation of a new excise legislation. The cabinet is expected to consider willingness of Russia and Kazakhstan to reduce duties on Pakistani goods for support to the long-awaited accession to World Trade Organization (WTO).
The accession of the two countries to the WTO had been under consideration for the last 10 years but lack of support from member countries delayed their entry to the WTO. Pakistan is seeking initiation of preferential trade arrangement and subsequently free trade arrangement with Russia.
Sources said Russia had reduced tariff on leather garments, apparel, clothing, sacks, bags, carpets, jewellery, toys/games and furniture in the first phase. Moscow has, however, rejected a request to reduce duty on sugar, confectionery, preparations of cereal, infant food, fruits, vegetables and juices.
Russia has also agreed to include Pakistan in its Generalized Systems of Preferences (GSP) scheme, following which Pakistan would enjoy a 25 per cent concession in duties.
It has also agreed to grant Pakistan the ‘Initial Negotiating Rights’ on certain products, which would enable Pakistan to have a right of compensation if at a subsequent stage the Russian Federation raised tariffs beyond the bound rates.
Pakistan is seeking reduction in tariff from Kazakhstan for exporting sugar, confectionery, fruits/vegetables, juices, milk products, fish, meat, garments, yarn, leather products, footwear, headgear, soaps, razors and cutlery. Pakistan wants bound tariff at 0-15 per cent from Kazakhstan against 20-120 per cent proposed by Kazakhstan.
The cabinet is also expected to ratify a preferential trade agreement with Iran and establishment of joint economic commission between Pakistan and Bosnia. The meeting will also ratify an agreement between Pakistan and the IUCN (The World Conservation Union) on protection of forests and environment.
The cabinet is likely to allow the Ministry of Industries and Production to start negotiations with Uzbekistan for an agreement on cooperation in the sphere of support for small and private entrepreneurship. It will also approve signing of an MoU with the Russian energy firm Gazprom for cooperation in the oil and gas sector and permit the Shaikh Zayed Postgraduate Medical Institute of Lahore to sing an MoU with the Gulf Medical College of the UAE.
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