The developing countries have sought further time for withdrawing protective tariff for its industries while the developed countries want zero tariff under the World Trade Organisation (WTO) regime.
This was stated by Pakistan's Permanent Representative at WTO, Dr Manzoor Ahmed, while addressing members of business fora of Pak-German, Pak-Italy, Pak-Belgium, and Pak-France at a dinner on Thursday.
There had been no decision on the issue under which the developed world was committed to reduce their industrial tariff to five to ten percent, he said, adding the third world countries wanted a grace period of 15 to 20 years to reduce their tariff to a lowest level.
Dr Manzoor said that in the current negotiations the developing countries were demanding to soften the application of punitive rules under WTO such as anti-dumping duty, injuries, dumping margin and rate of duty as well as to prevent frequent application of such rules by the developed world against the developing states.
Regarding withdrawal of the textile quotas, he said the quotas were supposed to be withdrawn in phases beginning from 1995 when the WTO regime was enforced. The developed world had so far eliminated 25 to 30 percent quotas against the prescribed limit of 50 percent, however, those quotas would be fully abolished in January 2005, he added.
Dr Manzoor said the Pakistani export of agriculture products would not be able to compete in the world market as long as the USA heavily subsidise its farm sector which according to an EU estimated amounts to dollar 300 billion against dollar 15 billion as claimed by Washington.
He said the WTO refused to allow further extension in deletion programme under Trade Related Investment Measures (Trims) which had been extended for every two years since 1995 on the request of eight countries including Pakistan which was the only country now seeking further extension.
With the end of extension the manufacturers would be allowed to acquire parts from any country instead of arranging from vendors of vehicles manufacturing in the country.
Dr Manzoor disclosed that during the current WTO negotiations Pakistan demanded the western world should open its labour market for professionals from the developing countries in the event of opening services sector for free trade. The contractors of the developing countries should be allowed to export its engineers and labour to the developed country in the event of winning a contract in the service sector, he added.
The guest was welcomed by Pak-Belgium Forum President Mohammad Rajpar. Also present were Pak-German Forum Chairman Razzak Bengali and Pak-Italy forum's Aziz memon.
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