For resolution of hundreds of international trade disputes lying unresolved for years, the government has decided to constitute International Trade Dispute Arbitration Council (ITDAC) of all stakeholders. This decision has been made in the recently announced Strategic Trade Policy Framework 2012-15.
According to the detailed summery of the Trade Policy, 'ineffective mechanism for resolution of trade disputes has tarnished Pakistan's image amongst international business circles and it discourages the emergence of Pakistan both as a destination for investment as well as a reliable import source.'
It says, "in order to make the system of international trade dispute resolution effective , it has been decided to constitute a committee with the secretariat in the Ministry of Commerce with membership from Trade development Authority of Pakistan (TDAP), Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Chambers, Law Justice and Human Rights Division, Secretary Law and Justice Commission of Pakistan, representatives from Karachi Dispute Resolution Centre (KDRC) to propose an action plan for setting up the ITDAC and revamping the existing Commercial Courts to give the country a more efficient, time saving, relatively inexpensive mechanism for trade dispute resolution. The committee would be required to give their recommendations within three months which will be placed before the Cabinet, for its approval."
According to sources, the decision was made following a proposal made by TDAP that hundreds of trade disputes have not been resolved for years in the absence of a legal cover to take punitive action against the delinquent exporting/importing companies. The mandatory registration of exporters with concerned associations was another step taken by the Ministry of Commerce to stop the ever increasing trade disputes.
Earlier, in its proposal, the TDAP had suggested to the ministry to issue an Order/SRO under the Imports Exports (Control) Act, 1950, empowering the authority to call for any information/document from the importers/exporters and debar them from international trade in case of their failure to provide the desired information or the establishment of their involvement in any trade mal-practice and irregularity.
After the rescission of the Registration (Importers & Exporters Order) 1993 through the SRO No 490 (1)/2002 dated August 5, 2002, the TDAP had no legal authority to call for any information/documents from importers/exporters for the purpose of investigating complaints received against them from the local or foreign buyers or take any punitive action against them.