Cabinet approves new Trade Organisations Ordinance

The federal cabinet has approved new Trade Organisations Ordinance, in principle, to weed out fake trade bodies, prohibit grouping, block voting and campaigning, the sources in the commerce ministry told Business Recorder on Thursday. However, till the enactment and enforcement of the new law, the trade bodies would continue operating under the existing Ordinance, 1961, they added.
The new law would be drafted by a committee, headed by former Justice Saleem Akhtar, which had been earlier assigned to analyse the structure and working of the trade bodies besides, identification of the role of the FPCCI, the sources added.
The committee had also been asked to define the purpose, role, responsibility and operational framework for all the trade bodies and their membership criteria.
Sources said the new law would ensure good governance by putting in place establishing procedures that promote transparency, adding this would include development of code of ethics by the trade bodies, corporate and financial management.
Transparent election procedures, including resolution of disputes and prohibition of "grouping, block voting and campaigning" would be the main focus of the new law, the sources added.
According to the new law, the newly-registered trade bodies, holding valid licence, would be entitled to vote and contest elections after completion of two years of their affiliation with the apex body. The newly-enrolled members of the trade bodies would be entitled to vote and contest election after completion of two years of their valid enrolment.
Sources said the committee would also define circumstances and the mode of intervention by the regulator in the affairs of trade bodies. The trade organisations law would empower the regulator to frame rules for the enforcement of new law and achieve its objects.
The regulator would develop a detailed system to weed out fake trade bodies on the basis of new criteria after giving them opportunity of being heard and merger of trade bodies, and representation of women, commerce, trade, industry, and trade in services at the trade bodies, including the apex body.
The commerce ministry, in its summary to special cabinet meeting convened to approve Trade Policy 2006-07, had proposed that the committee may be mandated to prepare the draft law, rules required there under and model memorandum and articles of association by October 31, 2006, the sources added.
After enforcement of the new law, necessary measures would be taken to implement the reforms already being considered necessary by the ministry, they maintained.
Sources said all subsequent elections would be conducted under the new law/rules in the associations, chambers, and the FPCCI to ensure effective representation of commerce, trade industry, women, and agriculture.
They said the committee felt during discussion that rules for the purpose of enforcement of the Ordinance have been framed which allow unlimited discretion to the regulator, creating uncertainties for the trade bodies about their rights, privileges, and responsibilities.
The committee was of the view that the system is generally slow to respond to the modern day requirements of the trade bodies. The enforcement of law is selective and injudicious in application of most legal provisions, said the sources.