ISLAMABAD, Feb 28: Pakistan has told the World Trade Organisation (WTO) that it should not expect from it 100 per cent reciprocity in terms of duty rationalizations.

Commerce minister Humayun Akhtar Khan told a news conference here on Friday that Pakistan had also protested over chain investigations under the anti-dumping rules. Such actions were against the WTO rules.

He said Pakistan would not accept decisions of the mini-ministerial meetings of WTO in which it was not invited. He said Pakistan would now change its policy and go for bilateral and regional trade agreements to avoid isolation and offer to Japan for a Free Trade Agreement was part of this new policy.

All the countries are signing agreements on their own and “our policy is also moving towards bilateral and regional trade agreements otherwise we will be isolated,” he said.

The minister said that Prime Minister Mir Zafarullah Khan Jamali would soon announce a policy for setting up of Free Export Zones on the pattern of free economic zones in China. China and Japan are expected to set up their industries in the Punjab and Karachi for export purposes.

The minister said the European Union had started anti- dumping proceedings against Pakistani products and completed it in 2002, but again these duties were imposed despite the fact that WTO rules required restraint.

He said that Pakistan was worried, like other developing countries, that it would have to face problems if the western countries brought down their duties, suppose from 300 per cent to 30 per cent, and then expect of us to reciprocate. “I have told the DG WTO that 100 per cent reciprocity should not be expected from Pakistan,” said the minister.

He said that there was another contradiction that on one side the developing countries were being asked to reduce tariff to a uniform level and on the other hand they were moving towards regional and bilateral free trade.

He said that Japan was subsidizing rice, EU was subsidizing sugar and the US was subsidizing cotton and at the end of the day Pakistan finds itself in a difficult situation because its surplus commodities were at a disadvantageous situation. He said Pakistan was worried that these subsidies might impact Pakistani economy.

He said that Pakistan was also now adopting a policy of regional and bilateral free trade. In view of the fact that Japan was sensitive in the agriculture sector, Pakistan has proposed that a bilateral free trade agreement should cover only non-agri products.

To a question, however, he said that South Asian Free Trade Agreement could not take off unless South Asian Preferential Trade Agreement is completed.

The minister said that Sapta was expected to be finalized in January this year during the summit meeting that could not take place but hoped that it would be completed in the next round.

He said that many issues including trade and services, WTO rules and agriculture sector were now open for negotiations and Pakistan was firming up its position before the next ministerial round. To a question whether the EU had put on hold the implementation of trade concessions it had offered in the wake of 9/11 events due to political situation in Pakistan, the minister said a Pakistan-EU third generation agreement is yet to be tabled in the EU parliament for ratification.

He said there was a complete civilian rule in the country and there should not be any problem for the EU in that respect. He said he intended to meet his EU counterpart again soon and was in constant touch with EU through their representative in Islamabad and through Pakistani mission in Brussels.

To a question, Mr. Akhtar said that Pakistan was aware of Indian plans in Afghanistan through Iran and the commerce ministry had submitted its recommendations to the Economic Coordination Committee of the Cabinet to relax restrictions under the Afghan transit trade agreement. He said that adviser to the prime minister on finance Shaukat Aziz or he himself (Humayun) would visit Kabul very shortly to explore possibilities to improve trade and economic relations.

He admitted that Pakistan has not penetrated in the Japanese market and the second reason was that our other competitors like Bangladesh and Vietnam were enjoying preferential treatment being the Least Developed Countries (LDCs).

“We have requested Japan to extend same tariff benefits in some major sectors on bilateral basis, which are being given to the LDCs,” he added.

Replying to another question he said that textile quotas would be eliminated under the WTO but duties would not be made zero rated, he said, adding that some suggestions were in some circles to bring down the duties at zero rate by 2005, but it was just a suggestion till now.