ISLAMABAD, Feb 26: The World Trade Organization (WTO) Council for Trade in Goods (CTG) is meeting on March 11 to take up Pakistan's application seeking another three years extension for deletion programme the local auto-manufacturers pursuing.

Pakistan's Ambassador and Permanent Representative to WTO Dr Manzoor in a letter to commerce minister made available to Dawn stated that the issue was pending before the CTG, which would be considered in the up-coming meeting.

Pakistan would be the only country in the world seeking protection for the auto-manufacturers under WTO regime.

On the other hand, Pakistan was also considering whether it needed to pursue this issue any further. Since the original intention was to seek extension for another two years up to December 2005, it did not seem worthwhile pursuing this issue as the objective of government has been fully achieved.

Under the WTO's trade related investment measures (TRIMS) agreement, developing countries were given five years up to 1999 period to eliminate programmes inconsistent with TRIMS agreement.

Pakistan along with seven other countries sought four years extension up to December 2003, which was granted. At the end of this period, all other countries have complied with the agreement. However, Pakistan was seeking another three years extension.

According to the ambassador, the elimination of deletion programme would not mean that government would lose its sole authority to levy tariff rates on import of cars.

The only implication would be that new auto assemblers would not have to meet the condition of using a certain minimum percentage of locally produced auto parts, he said and added thus the current assemblers might have to face more competition.

According to the WTO agreement on TRIMs, which entered into force on January 1, 1995, all WTO members were required to phase out trade distorting measures such as deletion programmes. Developing countries were given an extra five years to do so.

Informed sources told Dawn that the Ministry of Industries, which oversees the deletion programme was contending that it has already phased out more than 200 such programs in other industries such as electronics, electrical machinery such as washing machines, televisions, etc. and for implementing it for auto industry it should be allowed another three years.

Theses sources said the deletion programme has also halted foreign investment in the auto sector, which resulted into massive rise in the car prices. On the other hand, the spirit of the TRIMS agreement is that it should be left to concerned industry to sources its components where it finds it economical and that manufacturers should not be forced to buy from any specific sources.

On the basis of a complaint filed by the United States against India, it was decided by the WTO that India's deletion programme for auto industry was illegal and asked the Indian government to immediately implement the TRIMs in the country.

The Indian government had complied with the WTO panel's decision. In view of this decision, now it seemed even more difficult that Pakistan would succeed in getting further waiver.