Pakistan Automotive Manufacturers Association (PAMA) has opposed the inclusion of auto sector in the proposed Free Trade Agreement (FTA) with Thailand saying that any such step would be destructive for the local industry, well-informed sources in Commerce Ministry told Business Recorder. Director General, PAMA, Abdul Waheed Khan, in a letter, has conveyed the concerns of local auto industry to the Ministry of Commerce which is on the driving seat of negotiations with Thailand.
Auto Development Policy (ADP) was announced in March this year but its implementation commenced from July 1, 2016. The policy period was five years ending June 30, 2021. "The policy demonstrates a long term commitment to the stakeholders particularly new investors given that the policy is heavily tilted in their favour. Therefore, local auto industry has urged the government not to touch those items that are covered under the framework of the ADP as it would unsettle the existing industry and may irk prospective new investors that we are expecting to attract under the new policy," the sources quoted Khan as saying in the letter.
ADP was the second policy that came after completion of the previous five-year policy which was titled towards AIDP. The AIDP was formulated to improve performance of the auto industry to achieve a milestone to meet the country's demand for all four vehicles ie passenger cars, light and heavy commercial vehicles, two/three wheelers and farm tractors.
"As such any market access consideration in the auto sector, in general, would be destructive to local industry particularly the CBUs like HS 8704.2190, 8704.2299 mentioned in the Thai request list," PAMA maintained. The industry is bound to work in accordance with three SROs: 655, 656 and 693 of 2006 issued in line with WTO Trims agreement and abolished mandatory deletion programs. The framework of SROs, over the years, has enjoyed great respect from all stakeholders as it has successfully catered to the needs of part-makers, assemblers and have greatly spurred localization, he added.
"We have been provided Thai request list that covers Chapter 87 only whereas auto sector items are spread all over the PCT; a glance on SRO 693 would explain this. As such we would like to have the entire Thai request list to formulate comments comprehensively," PAMA said, The Association has requested the Commerce Ministry to provide the entire Thai and Turkish requests to enable the local industry to submit an informed detailed reply on the lists.