Commerce Minister Humayun Akhtar said on Monday that there would be no substantial negative impact on the country''s textile industry after adoption of ''Swiss formula and two coefficients''.
"There will be cut on bound tariff, not applied tariff, and we will try to prolong its implementation as long as possible so that it should not hurt our textile industry," he said in response to questions asked at a press conference on WTO and other commerce related issues.
The Minister was asked how Pakistan''s textile industry would survive if tariff was reduced from the current 25 percent to 12-13 percent as per Swiss Formula, which was backed by Pakistan, he said that time would be needed to implement the agreement, and Pakistan would try its level best to prolong it.
He said that tariff has come down from 65 to 25 percent and presently it is around 10 percent. "We will try to prolong the process until it reaches 15 percent."
"Pakistan''s proposal to have two coefficients--one for the developed countries, which should be 6 percent, and another for developing countries, which should be 30 percent--had received strong support from all developing countries to provide level playing field to the manufacturers of both developed and non-developed blocs.
"If such coefficients are eventually agreed upon it means that tariffs on textile and clothing in the EU and US markets would be cut by more than 50 percent," he said, in a written statement distributed among the newsmen.
"In fact, they would be cut to less than 6 percent, as against 12-30 percent, prevailing at present. This would considerably reduce discriminatory tariffs, which Pakistan''s exporters face vis-à-vis their competitors many of which enjoy duty-free access because of the LDC status, or because they have FTA with major trading economies," he added.
Asked what Pakistan would achieve against liberalisation of its services sector, the Minister said that Pakistan would get mode 4 which means rich countries would provide visas to Pakistani workers.
Humayun said that Pakistan had supported an Early Harvest Programme (EHP) for the Least Developed Countries (LDCs) like Bangladesh but it would not compromise on its national interests.
"We are of view that a package should be given to LDCs, but the affected developing countries should also be accommodated," he said.
The Minister said that Pakistan has cordial bilateral ties with Bangladesh and would enter South Asia Free Trade Agreement (Safta) from January 2006, and added that he was writing a letter to his counterpart for signing of FTA.
After level playing field in trade, the Minister said he hoped that not only Pakistan''s exports would increase but per unit value of its products would also increase.
He said that there should be no worry on the widening of the trade gap, as balance of payments was in line with the policy.
Regarding trade with India, he said that Pakistan was ready to talk with India on every issue, including trade, if it makes in tandem progress on political fronts. "Trade balance is going in favour of India, and we are asking for level playing field and removal of tariff barriers," he added.
About weakening of the rupee, he said that days "have gone when Pakistan itself had to decide" about revaluation or devaluation of its currency, as now market forces have to determine the value of every country''s currency.
Regarding the flood of Chinese goods, which is hurting local industry, he said that the government was protecting local industry through unilateral tariff measures, but now the industry has to compete in the international market. However, National Tariff Commission (NTC) was taking action through imposition anti-dumping duty, he added.
He said that WTO regime was also going towards zero tariff, and non-tariff barriers would be very important in future.
Asked if Pakistan would provide transit facilities to Afghanistan, after its becoming member of Saarc, he said that Afghanistan has been given the status of observer and " we will obey if there is anything regarding transit trade obligation".
Comments
Comments are closed.