ISLAMABAD, March 27: Pakistan is steadily losing its export share in the Australian market due to high tariff walls and non-tariff barriers for the past few years, officials told Dawn on Tuesday.

Bilateral trade has not grown much, hovering around half a billion US dollars per annum, with a significant trade deficit, owing to various reasons, particularly high tariffs and NTBs on the products of Pakistan’s export interest.

Official figures, available with Dawn, showed even when the average MFN tariffs are as low as 1.5 per cent and 4.1 per cent for agricultural and non-agricultural products, respectively, Pakistan faced pronounced tariff walls and NTBs on the exportable products.

The applied tariffs on textiles, clothing and footwear are still maintained at 17.5 per cent, which poses a challenge of competition to Pakistani exports against the imports from countries with similar level of socio-economic development indicators but enjoying zero duty and other preferential benefits.

An official said Pakistan had requested Australia in September last to reconsider their preferential scheme to have WTO compatible objective, transparent and non-reciprocal criteria.

The business community has already shown their concern with the stringent sanitary and phyto-sanitary standards in Australian market, thereby affecting export of fruits, vegetables and other agricultural products.

Australia has limited imports of fruits and vegetables from most countries, including Pakistan, due to strict SPS rules and regulations. This restricts market access for Pakistan.

The official said Pakistan has sent draft agreement on cooperation between Pakistan and Australia, which is under consideration of Australian Department of Agriculture. However, reasons for delay in finalisation of the agreement are not clear yet.

In temporary movement of natural persons, it was felt that despite having no country quota for skilled persons, the Australian visa control policy accords equal treatment to all, but less equal to some.

Pakistan had raised these queries at a recently held trade policy review of Australia in Geneva. A list of some written questions has also been submitted to Australia.

Australian tariffs on primary products are considerably lower than on semi-processed goods. Thus, tariff escalation constitutes a potential obstacle for industrialisation of developing countries, including Pakistan.

Australia’s revised offer in Mode 4 of Services is appreciated as one in which efforts have been made to cover developing countries’ demands.The coverage states that market access recorded is to the extent of the list of gazetted occupations and their immigration website gives the lists, which include professional services covering most sectors, though not fully, as this is a positive list approach.

However, the requirement of sponsorship, as well as requirement of contract in their revised offer, made during the period under review, lack clarity.

Both ensure that a temporary person has legitimate means of support and someone is responsible for the stay. In other words, a person in the possession of a valid job contract is as good as sponsored or vice versa.

There is a need to explain the difference between a valid job contract that includes terms and conditions, salary package and duration of job and a ‘sponsorship’ in the context of a temporary service provider, added the officer.