ISLAMABAD, Nov 8: The World Trade Organization (WTO) has granted Pakistan a two-year extension (till December 2003) in transition period for the elimination of Trade Related Investment Measures (TRIMs) for all goods and sectors.
Authentic sources told Dawn that the Ministry of Commerce had received a formal approval to this effect through a letter dated November 5, 2001, forwarded by Pakistan’s Geneva mission.
The WTO Council for Trade in Goods took this decision following a phase-out plan submitted by the government of Pakistan about three months back for the elimination protective measures based a number of practical and technical reasons for the delay.
Official sources said that Pakistan was now advocating for another two year extension during the ongoing WTO summit in Doha so that it could formally request for another two-year extension till December 2005.
The phase out plan for all goods other than automobiles envisaged 50 per cent elimination by June 2002, 25 per cent by June 2003 and 25 per cent by December 2003. Deletion Programme for auto sector is to be phased out by December 2006.
In the automobile sector, car industry has achieved 50 to 70 per cent indigenization till date. This is followed by 48 to 83 per cent in tractors industry, 77 to 83 per cent in motor cycles, 38 to 63 per cent in commercial vehicles and 45 to 47 per cent in buses industry.
Plant machinery and vapour generating equipment achieved 28 to 100 per cent indigenization, followed by 61 to 100 per cent in metal working industry, 79 to 100 per cent in electrical industry and 68 to 100 per cent in domestic appliances.
Consequently, the export of engineering goods through small manufacturing excluding surgical goods has started registering an impressive growth. Last financial year it was over 57 per cent.
Under the TRIMs agreement Pakistan was originally required to eliminate its deletion programme within five years i.e. by December 31, 1999. It filed a request with the WTO for extension of the transition period for another seven years i.e up to December, 2006. Following the 2+2 strategy, the WTO in July last allowed Pakistan an extension up to December 31, 2001 with a possibility of another extension for further two years up to December 31, 2003. This has now been formally approved up to December 31, 2003.
In its request to the WTO for extension in September this year, Pakistan had listed particular difficulties it continued to face in implementing the provisions of the TRIMs agreement.
