June 18, 2006	Sunday	Jumadi-ul-Awwal 21, 1427

ISLAMABAD, June 17: Speakers at a seminar said the finalisation of modalities for tariffs and subsidies on farm and industrial sectors by rich countries would hurt the interest of poor countries.

Rich states are meeting in Geneva on June 28 to finalise the modalities for cutting tariffs and subsidies on farm and industrial sectors.

The speakers said the modalities to be finalised in a mini-ministerial type meeting, which would be attended by rich countries and some major developing countries, could not be imposed on the rest of the member countries.

They were speaking at the National Consultation on Status of Doha Development Round: Interests of Developing Countries here on Saturday, organized by the Sustainable Agriculture Action Group (SAAG).

The participants also pointed out that there was a lack of coordination among various ministries in formulation of national strategy papers for negotiations. “A research-based approach should be adopted in national and international negotiations to determine the actual pros and cons of any deal.”

John Samuel, head of Actionaid South Asia, said the current round of negotiation at the WTO was not a transparent process. He went on to say that negotiations were not done at the WTO, adding that most of the issues were settled in country strategy papers of the World Bank.

"Within multilateralism there is bilateralism in place. Growth, which is happening in our world, is not sustainable. The growth is due to stock market that is inflated and unsustainable, as it falls down," he remarked.

"Doha round has not delivered anything. Unless we invest in industrial and agricultural development, education and infrastructure, we cannot achieve the goal of real growth and sustainable development," he added.

Mohammad Suleman, a consultant of the Federation of Pakistan Chamber of Commerce and Industry, said the rich countries had cleverly linked the agriculture negotiations with the industrial sector negotiations. He said the kind of formulas being under discussions showed that in case anyone of these was adopted at the forthcoming meeting, it would have a serious implication on the local industries.

Answering a question, he said the immediate effect of these formulas would be on chemical and automobile sectors of the country. He said any commitment at the WTO would mean that in future Pakistan would not be in a position to provide any protection to the newly-established industry.

Dr Wajid Pirzada, head of WTO cell at the ministry of agriculture, said the formula for tariff reduction on farm products would be around 54 per cent. “Unless you remain within 60 per cent while reducing tariff, practically you are not gaining anything to get market access for agriculture products without addressing tariff peaks.”

About the expected outcome of the meeting, Mr Pirzada said even if the reduction in tariffs remained short of the expectation it would still give some benefits to Pakistan. "We have maximum applied tariff of 25 per cent, with no subsidies. So even minor cuts in other countries would give us benefits," he added.

Qasim Niaz, joint-secretary of WTO wing at the ministry of commerce, said after the Hong Kong summit it was expected to have an agreement on modalities by month-end. “Now, counties will make their tariff reduction schedule, year by year for implementation. These schedules will be exchanged and checked for verification. If it is done by December 2006, it is fine otherwise things would take another turn,” he added.

Mustafa Talpur of Actionaid said Pakistan should not sign a bad deal; people agenda be brought back. “Whole trade regime is hostage to the US fast-track authority deadline,” he added.