ISLAMABAD, Nov 26: Commerce Minister Humayun Akhtar Khan has linked the success of the Hong Kong ministerial conference with the opening up of the EU agriculture sector for other countries.
“I am not very much optimistic about the breakthrough in the stalled negotiations at the HKMC, particularly on the agriculture sector,” said the minister, who would represent Pakistan in the ministerial meeting to be held next month.
Talking to Dawn, the minister said that if the EU improved their offers in the market access for agriculture products, there would be a positive move in other areas of the negotiations.
According to the latest proposals of the EU, European states would still have protection on more than 180 agricultural products. This means that most of the items, which were of the interest of developing countries, could not be exported to the EU markets, such as meat, dairy products, sugar, etc.
The EU has not notified its subsidies for the last three to four years. However, according to Actionaid estimates, the EU is currently giving around 64 billion euros of subsidies (common agriculture policy plus other support) to their farm sector. If the current EU offer to cut down their subsidies goes ahead, the EU will still be giving around 54 to 58 billion euros of annual subsidies.
Mr Khan said these huge domestic support and subsidies given by rich countries to their farmers had resulted in depressing world prices of agriculture products which had granted an unnatural competitive advantage to their products over those produced in poor countries.
In addition to this, developing countries have also kept their tariffs of agriculture products at extremely high levels, resulting in virtually closing down of their markets. Mr Khan said that Pakistan also believed in trade among South Asian nations. “So, Pakistan’s offers in the agriculture sector are only defensive but also offensive.”
In reply to a query, the minister said that Pakistan would also utilize the forum of the Cairns Group — 17-member farm products exporters -– which it had joined, for seeking a greater market access for its products.
The minister said in case of any move in the agriculture negotiations, there would also be a move in the negotiation of non-agriculture market access (NAMA), services and then rules, which was important for Pakistan.
He says Pakistan wants textile products included in the NAMA negotiations. The minister claimed that Pakistan’s proposal for a cut in tariffs on industrial goods was supported by almost all countries. However, he said there was only disagreement on percentage of the reduction.
The minister said a further liberalization in the services sector would be offered following having a market access to the services sector of developed countries. He said Pakistan was also supporting amendments in rules of anti-dumping duties to make it less discriminatory.
