ISLAMABAD, May 16: Commerce Minister Humayun Akhtar Khan said on Wednesday that the biggest challenge to the multilateral system is the impact of bilateral deals — free trade agreements (FTAs).

“At one time they were considered as complimentary and serving the same purpose of liberalisation, but increasingly bilateral deals are hindering multilateral trading system,” the minister said while speaking at the OECD annual Forum held in Paris.

According to press release issued here by the commerce ministry, during his address the minister said that while time was running out for concluding the Doha round, the priority for key members of WTO is towards bilateral FTAs.

Mr Khan also highlighted major concerns of the developing countries because of multi-lateral trading system’s inability to address the existing market access impediments.

He said that agriculture subsidies in rich countries hurt poor people in developing countries.

“It is estimated that the world’s poorer countries lose a total of $24 billion because of the subsidies paid to the farmers by rich nations. In addition, a further $40 billion in agricultural exports could be generated by developing countries if protectionist policies were abundant by developed nations,” he added.

Another major challenge to the multilateral trading system, the minister said, was the current expectations from the multilateral trading system to resolve all world issues.

“WTO still has over 20 complex issues varying from agricultural reforms to intellectual property rights to environment and so on which should have been left to specialised international organisations created for the purpose,” he remarked.

Director-General, WTO Pascal Lamy chaired the session while ministers from New Zealand, Netherlands, Mexico, Argentina and Sweden also addressed the forum that was followed by discussion.

The Moderator of the Forum, Editor of Financial Times, London appreciated Pakistan’s positive contributions to trade negotiations.