The members of local industry have urged he chairperson of Competition Commission of Pakistan (CCP) to intervene in the policy of Afghan Transit Trade Agreement (ATTA) to check massive misuse of the facility which has created uncompetitiveness in the market due to disadvantages of documented businessmen against persons selling smuggled goods.
It is learnt that the issue came to the light during the 10th meeting of the Competition Consultative Group (CCG) held here on Wednesday. A senior member of a local industry pointed out the competition related problems arising due to the ATTA. The businessmen of documented industries, like tea, are severely hit by those misusing the transit trade facility creating uncompetitiveness in the market. The person selling smuggled items at lower cost has edge over the persons engaged in legitimate import, which is a competition related issue which should be checked by the CCP.
This is for the first time that the representatives of the top business units have shown full confidence in CCP and sought its intervention to check misuse of transit trade facility. In view of the recent landmark orders against the cartels, the private sector has shown courage to request the CCP for examining the impact of the transit trade facility on local industry. During the meeting of CCG, it was highlighted by a representative of a local industry that the ATTA is creating disadvantages for the persons engaged in legal business as compared to those involved in smuggling of goods. It was requested that the CCP must intervene within the legal framework of competition law and advise the relevant government departments to check this anti-competitive behaviour due to the misuse of the transit trade agreement. The CCP was also informed that a formal complaint by the private sector would be lodged to the Commission to examine the policy of the ATTA from competition point of view, sources said.
The representatives of local industry also sought help of the CCP in checking the role of the ATTA in creating disadvantages of the local industry due to misuse of the transit facility. The CCP officials assured the private sector to extend full support in examination of the issue within the legal framework of the competition laws.