Dr Manzoor Ahmed Khan, Ambassador of Pakistan to WTO's Geneva Mission, has said that Pakistan was preparing its strategy to take a firm stand on duty reduction and agriculture subsidies at WTO ministerial meeting scheduled in Hong Kong next month.
Speaking at a meeting with members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) here on Saturday, he said that the purpose of this meeting is to get feedback of business community on these issues so that Pakistan should formulate its strategy and national stand on them.
Dr Manzoor said that the European countries want that all the import duties be kept within the maximum range of 10 percent and not more than that. He hinted that Pakistan might take a stand that import duty should be fixed at maximum 15 percent, adding that at present it is 25 percent.
Replying to a question, he said that Pakistan started reducing its import tariff few years back. "Before that country's total exports were stagnant at 8 billion dollars and after reduction exports started picking up and now have crossed 12 billion dollars. To another question, he said that duty reduction posed to hit local industry but on the contrary it boosted local production. Giving example of TVs, refrigerators, he said that Pakistan is producing quality TV and refrigerators. "The manufacturing units are now running in full capacity and their smuggling into Pakistan has also come to an end."
On a query, he assured that problems of automobile sector will be presented and highlighted in the agenda of the next meeting of the WTO and advised the auto industry that they must prepare themselves to capture export market.
Regarding deletion programme, Dr Manzoor said under WTO rules there was no room for such programme and it is likely to be shelved in next 2 to 8 months.
The Ambassador said WTO regime subsidy was already not allowed in the industrial sector. The industries that were being run inefficiently and were not competitive would have to either become efficient or be closed down.
Regarding agricultural subsidies, he said that the US and European Union have given firm proposals regarding agricultural subsidies two or three weeks ahead of Hong Kong round of WTO negotiations.
Dr Manzoor said that developing countries including Pakistan have been demanding from the US and European Union to withdraw their subsidies to the agriculture sector such as credit to the farmers, domestic support and tariff on imports, adding developed countries are willing to withdraw them provided the developing countries withdraw tariff and other restrictions from the services sector.
The Ambassador said that it was in the interest of Pakistan and other developing countries that the forthcoming round of negotiations concludes successfully. He said that Pakistan was suffering most as it was neither a least-developed country like Bangladesh nor had signed Free Trade Agreements with numerous countries like Chile.
FPCCI economic advisor Suleman Khan informed the meeting in reply to a query from a participant that Pakistan was negotiating with Gulf Co-operation Council to become a member and hoped that the negotiations will prove successful.