As many as 15 sectoral committees have been constituted by the Ministry of Commerce to evolve sector-wise strategy in the wake of normalisation of Pakistan-India trade ties. According to the terms of reference, these committees would work on:
--- Identification of segments of industry which are not competitive vis-à-vis India and reasons therefore.
--- If the tariff protection for these products range adequate to safeguard the relevant industry?
--- Comparative tariffs of India and Pakistan for the particular product range.
--- India's export potential in this sector.
--- Have trade defence laws been used in this sector? If not how can these processes be facilitated?
--- Export potential for India: what products can be exported to India?
--- Is the item included in India's SAFTA sensitive list for NLDCs and LDCs? If so, what is the level of protection?
--- What are tariff/non-tariff barriers that need to be addressed to facilitate exports of these products?
Additional Secretary 1, Ministry of Commerce would be convenor of all sectoral committee. Director General (Trade Policy), Ministry of Commerce and representatives of Ministry of Industries, Ministry of Production, Trade Development Authority (TDAP), National Tariff Commission (NTC), Pakistan Institute of Trade and Development (PITAD), and Federal of Pakistan Chambers of Commerce and Industry (FPCCI) will be the members of all committees in addition to the proposed sector specific trade associations, Pakistan Standards and Quality Control Authority (PSQCA) and Ministry of Professional Training would also be members of the sectoral committees on "Agriculture, Livestock, Horticulture Food and agro based and process industry and on sectoral committees on engineering, chemicals, and pharmaceuticals.
Sectoral Committees would cover following areas: agriculture, livestock, horticulture, food and agro based processed industries, auto sector, plastic, paper-board and glass, pharmaceutical, surgical sector, engineering, cutlery, sports goods, textile and clothing, iron and steel, chemical and toiletries, plastic, leather and footwear, gems and jewellery, and engineering.
According to minutes of the inter-ministerial meeting on evolving sectoral strategies in the wake of normalisation of trade relations with India held in the middle of last month under the chairmanship of Additional Secretary 1, Ministry of Commerce, Fazal Abbas Maken, Dr Safdar Sohail, Director General, Trade Policy, Ministry of Commerce explained that the purpose of the meeting was to reach out to the industry in matters of normalisation of trade relations with India. Since the Cabinet had approved the negative list for India, there was a need to change strategy towards India in this new phase. Pakistan had to be both defensive and offensive in its approach towards India, he said.
Taking the argument further, Dr Saeed Qadir, Deputy Secretary, Ministry of Commerce said the terms of reference of the sectoral committees have been drafted to exploit the export opportunities in the wake of opening of 300 million plus middle class Indian market. In addition to that the vulnerable sectors have to be provided adequate support and protection from the import surges or threat of unfair trade practices.
Fazal Abbas Maken, Additional Secretary 1, Ministry of Commerce said that necessary measures would be taken to educate the industry. He informed the meeting that the cabinet has accorded approval of transition of trade arrangement with India from existing positive list to a negative list. The negative list will be phased by December 2012. The phasing out of negative list is contingent upon on the removal of NTBs and market excess issues faced by the Pakistani exporters for trade with India. He further stated that Pakistan has to have strategy both defensive and offensive with regard to the challenges and opportunities it entailed with the opening of trade with India.
Deliberating on the terms of reference of sectoral committees, he said that the TORs developments were opened to suggestions of the committee members. He invited specific suggestions on requisite improvement in trade defence laws of Pakistan for protecting local industry. Commenting over offensive strategy of Pakistan, he emphasised that the industry should also see it's potential in the Indian market and come up with sound proposals through intensive discussions/consultations. He further elaborated that each of the sectoral committees would interact with the respective industry/sector with an objective to spell out any NTBs/trade frictions/procedural constraints faced by Pakistani exporters while exporting to India. This information of NTBs and other constraints faced by the exporters will be taken up with the counterpart authorities in India so that the matter would be resolved to gain the market access opportunities.
The representative of Ministry of Textile was of the view that the industry should be educated through seminars. He said that the parameters of sectoral committees needed further elaboration. He said that in this exercise Indian manufacturing capacity may also be taken into consideration. On trade defence laws he said that the industry should be educated through circulation of brochures. To this, the Additional Secretary 1 informed that the Ministry of Commerce had already been working on finalising brochures of trade defence laws and suggestions of the stakeholders would be given due consideration. With regard to production capacity of India, he underscored the need to view the production capacity in tandem with local demand and price/quality aspects of the product.
Director General, Trade Policy opined that there was a need to study subsidies and support measures for industry in the Indian regime. He impressed upon the representative of National Tariff Commission to carry out thorough analysis of subsidies and tax regime in India. He stated that the enforcement capacity of NTC would be improved. The representative of Sindh Home Department endorsed the proposals of formation of sectoral committees.
It was agreed that the Ministry of Industries and Ministry of Production would be part of all sectoral committees. Pakistan Standards and Quality Control Authority and Ministry of Professional and Technical Training would also be part of the sectoral committees as proposed by the Ministry of Industries. The respective ministries may invite relevant stakeholders, if deemed appropriate.
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