January 21, 2006	Saturday	Zilhaj 20, 1426

ISLAMABAD, Jan 20: Least developed countries (LDCs) led by Benin have strongly opposed Pakistan’s move to restrict market access for their certain products to the rich countries, particularly the United States, at the Hong Kong ministerial conference (HKMC).

Well-placed sources told Dawn on Friday that Benin, the chair of the LDCs, conveyed its concerns to Pakistan’s permanent representative to the United Nation Munir Akram over the development.

Pakistan, along with Sri Lanka and Kenya, tabled a proposal at the HKMC, which stated that the impact of granting concession to the LDCs — quota free and duty free — on low-income developing countries should be carefully examined.

They suggest that if such access adversely affects the market access for those countries’ products that constitute a significant part of their total annual exports in value terms, then the same concession should also be extended to such products from those developing countries.

The sources said that the only and major victim of the decision would be Bangladesh, which might get zero duty market access for its apparel and textile products to the United States.

Pakistan had already supported Benin’s cotton proposal, which is one of the four African cotton producing countries, at Hong Kong that sought a complete elimination of all subsidies and domestic support to cotton from the US.

The decision taken at the HKMC led by Pakistan would now provide a level-playing field for Pakistani textile products to the US market, which are at present subject to high tariffs. It would also provide a level-playing field for Pakistani products against the LDCs, such as Bangladesh and Cambodia, which are highly competitive.

The analysis showed that the decision would also provide a level-playing field to Pakistani products under 339 tariff lines of the US Harmonised Tariff Schedule as would be available to the LDCs. This means that products under these tariff lines would get a market access on the basis of competitiveness.

According to the sources, had the HKMC approved a 100 per cent market access for all products of the LDCs, Pakistan would have lost 50 per cent market share in its exports to the US within two years.

Pakistan had already lost a major share in exports of clothing to Canada following the granting of free market access by Canada to the products of the LDCs, which mostly benefited the clothing sector of Bangladesh.

Analysts were of the opinion that stalling of the US market stopped the possible flight of Pakistan’s capital to Bangladesh and avoided loss of huge employment. A high profile textile delegation recently visited Bangladesh showed keen interest in relocating their investments to that country.

The sources said that except for two or three WTO members out of 149, no general ill will was generated towards Pakistan as a result of this stand. “The WTO is a voting-based organization, so if any LDC had any problem, it should have blocked the proposal,” added the sources.

The sources said that Pakistan’s proposal was also supported by several other developing countries and many LDCs that were fearful of losing their markets in case their preferences were reduced.