WTO Regime and Its Impact On Pakistan

31ST COMMON TRAINING PROGRAMME
WTO REGIME AND ITS IMPACT ON PAKISTAN
SYNDICATE NO. 1O
CIVIL SERVICES ACADEMY, LAHORE
WTO Regime and its Impact on Pakistan
31ST COMMON TRAINING PROGRAMME CONTENTS

WTO REGIME AND ITS IMPACT ON PAKISTAN 1
CIVIL SERVICES ACADEMY, LAHORE.......................................................................................1 ABBREVIATIONS...............................................................................................................................6 ACKNOWLEDGEMENTS.................................................................................................................8 SYNDICATE MEMBERS...................................................................................................................9 RESEARCH METHODOLOGY......................................................................................................10 P!RPOSE O" RESEARC# COMPOSITION O" S%NDICATE 1$ 1$
METHODOLOGY FOR RESEARCH.............................................................................................11 EXECUTIVE SUMMARY................................................................................................................1 1 CHAPTER ONE ! INTRODUCTION TO WTO..........................................................................1" 1 1 INTROD!CTION 1& 1 ' #ISTOR% O" WTO 1& 1 3 IMPORT (!OTAS AND TARI""S 1) 1 & ARG!MENTS "OR PROTECTION 1* 1 ) W#% A NEED "OR "REE TRADE 1+ 1 , !NDERSTANDING T#E WTO 11 * G!IDING PRINCIP.ES O" WTO '$ 1.7.I Most Favoured Nation Treatment (MFN)...........................................................................20 1.7.II National Treatment............................................................................................................21 1.7.III Stability and predictability t rou! bindin!.....................................................................21 1.7.I" Transparency....................................................................................................................21 1.7." Trade liberali#ation............................................................................................................21 1 + AGREEMENTS CONCERNING TRADE IN GOODS '1 1.$.I %!reement on Subsidies and &ountervailin! measures......................................................21 1.$.II %!reement on %nti'(umpin!.............................................................................................22 1.$.III %!reement on Sa)e!uards.................................................................................................22 1.$.I" %!reement on Trade *elated Investment Measures (T*IMS)...........................................22 1.$." %!reement on Tec nical +arriers to Trade (T+T) and on Sanitary and , ytosanitary Measures (S,S)............................................................................................................................22 1.$."I %!reement on Trade *elated %spects o) Intellectual ,roperty *i! ts (T*I,s)................22 1 - T#E STATE O" MARKET ACCESS AS A RES!.T O" WTO '3 1.-.I *eduction in Tari))s.............................................................................................................2. 1.-.II +indin! on Tari))s..............................................................................................................2. 1 1$ DO#A DE/E.OPMENT AGENDA '3 1.10.I Implementation'related issues and concerns....................................................................2.
1 1$ I a Gene0a1 Ag0eement on Ta0i22s and T0ade 3GATT4 1 1$ I 5 Sanita06 and p76tosanita06 3SPS4 meas80es 1 1$ I c Tec7nica1 5a00ie0s to t0ade 1 1$ I d T0ade90e1ated in:estment meas80es 3TRIMs4 1 1$ I e Anti9d8mping 3GATT A0tic1e ,4 1 1$ I 2 S85sidies and co8nte0:ai1ing meas80es 1 1$ I g T0ade90e1ated aspects o2 inte11ect8a1 p0ope0t6 0ig7ts 3TRIPS4 1 1$ I 7 "ina1 p0o:isions '& '& '& ') ') ') ') ')
CHAPTER TWO ! INDUSTRIAL SECTOR................................................................................ #
9 9
'

' 1 TARI"" STR!CT!RE IN PAKISTAN '* ' ' ;RIE" RE/IEW O" IND!STRIA. SECTOR O" PAKISTAN '+ ' 3 IMP.ICATIONS O" WTO ON IND!STRIA. SECTOR '2...I /0ports.................................................................................................................................2' 3 I a .eat7e0 P0od8cts ' 3 I 5 Spo0ts Goods ' 3 I c S80gica1 E<8ipment ' 3 I d Ca0pets and R8gs ' 3 II a C7emica1s ' 3 II 5 /egeta51e oi1 ' 3 II c "e0ti1i=e0 ' 3 II d Mac7ine06 E1ect0ica1 and Non E1ect0ica1 ' 3 II e Pet0o1e8m P0od8cts ' 3 II 2 T0anspo0t E<8ipment 3$ 3$ 3$ 3$ 31 31 31 31 3' 3'
2...II Imports................................................................................................................................1
' & CONC.!SION AND RECOMMENDATIONS
3'
$ CHAPTER THREE! TEXTILE AND CLOTHING SECTOR....................................................$" 3 1 WOR.D TE>TI.E AND C.OT#ING 3T?C4 TRADE 3& 3 ' T?C SECTOR O!T O" GATT 1-&* 3, 3 3 T#E COTTON ARRANGEMENTS 31-,191-*34 3, 3 & T#E M!.TI"I;RE ARRANGEMENT 31-*&91--&4 3, ..1.I /))ects o) t e MF%................................................................................................................7 ..1.II MF%2..a complete Failure................................................................................................7 3 ) T#E WTO AGREEMENT ON TE>TI.ES AND C.OT#ING 3ATC4 1--)9'$$& 3+ 3 , CRITICA. ISS!ES IN ATC &$ ..3.I Tari))s ,ea4s and /scalation...............................................................................................11 ..3.II Misuse o) Sa)e!uards.........................................................................................................11 ..3.III %T& more restrictive5.......................................................................................................11 3 * DECISION O" 1& NO/EM;ER '$$1 DO#A MINISTERIA. CON"ERENCE &1 3 + TE>TI.E AND C.OT#ING 3T?C4 SECTOR9 MA@OR CONCENTRATION IN PAKISTANAS E>PORTS &' 3 - PAKISTAN T?C /IS9B9/IS G.O;A. T?C &' 3 1$ STR!CT!RE O" T#E IND!STR% &3 ..10.I Stren!t s o) ,a4istan6s Te0tile 7 .......................................................................................1. ..10.II 8ea4nesses o) ,a4istan6s Te0tile.....................................................................................11 ..10.III Ima!e..............................................................................................................................11 ..10.I" To9ards "alue %ddition.................................................................................................11 ..10." Mar4et %ccess' (irection o) /0ports in ,ost :uota *e!ime...........................................1; 3 11 TARI""S IN T#E POST M"A P#ASE &* 3 1' PRE"ERENTIA. TRADE IN T?C &+ 3 13 IMP.EMENTATION ISS!ES &+ 3 1& "ORECASTING &..11.I Trade ,olicy o) ,a4istan 2001 *evie9..............................................................................;1 ..11.II Te0tile "ision 200;...........................................................................................................;1 3 1) RECOMMENDATIONS )1 3 1, CONC.!SION )& " CHAPTER FOUR ! AGRICULTURE SECTOR..........................................................................%% & 1 INTROD!CTION )) & ' WOR.D TRADE IN AGRIC!.T!RE SECTORC )) & 3 ;ACKGRO!ND TO !RAOAC ), & & T#E WTO REGIME ON AGRIC!.T!RE )* & ) T#E AGREEMENT ON AGRIC!.T!RE )* 1.;.I Mar4et access .....................................................................................................................;7 1.;.II /0port competition ............................................................................................................;7 1.;.III (omestic Support .............................................................................................................;$ & , WTO DOMESTIC S!;SID% ;O>ES )+
9 9

& * AN !NE(!A. AGREEMENT 3ANA.%SIS4 )+ 1.7.I (esi!n related issues...........................................................................................................;& * I a No 0ecognition o2 di22e0ences in ag0ic81t80a1 s6stems & * I 5 S85sidiesC 5oDing in t7e AoA & * I c Specia1 sa2eg8a0ds 3SSG4 & * II a No 0ed8ction in s85sidies & * II 5 Ag0eement on Sanita06 and P76tosanita06 Meas80es & * II c Tec7nica1 ;a00ie0s to T0ade 3T;T4 Ag0eement & * II d T0ade Re1ated Inte11ect8a1 P0ope0t6 Rig7ts )),$ ,1 ,1 ,' ,'
1.7.II Implementation related issues............................................................................................30
& + T#E DO#A AGENDA ,' 1.$.I Sanitary and p ytosanitary (S,S) measures ......................................................................3. & - T#E @!.% PACKAGE AND AGRIC!.T!RE ,& & 1$ ;RIE" RE/IEW O" AGRIC!.T!RE SECTOR O" PAKISTAN ,) & 11 PAKISTANAS C!RRENT PER"ORMANCE AND "!T!RE RE(!IREMENTS "OR T#E MA@OR E>PORT CROPSEPROD!CTS ,, 1.11.I &otton ...............................................................................................................................33 1.11.II *ice ..................................................................................................................................33 1.11.III Fruits and "e!etables ....................................................................................................37 1.11.I" <t er Items .....................................................................................................................37 1.11." Imports7 ...........................................................................................................................37 & 1' PAKISTANFS COMMITMENTS AND COMP.IANCE REGARDING AOAG SPSG T;T AND TRIPS ,* 1.12.I %!reement on %!riculture.................................................................................................37 1.12.II T/&=NI&%> +%**I/*S T< T*%(/(T+T)....................................................................3$ 1.12.III T*%(/ */>%T/( %S,/&TS <F INT/>>/&T?%> ,*<,/*T@ *IA=TS (T*I,S)....3$ 1.12.I" %A*//M/NT <N S%NIT%*@ %N( ,=@T<S%NIT%*@ M/%S?*/S (S,S)................3$
& 1' I/ a P0o51ems in Meeting SPS Re<8i0ements in EDpo0ting Ag0ic81t80a1 and "ood P0od8cts 20om Pakistan ,-
& 13 IMPACT ON PAKISTAN ,& 1& IMP.ICATIONS O" SPS MEAS!RES "OR PAKISTAN *$ 1.11.I /conomic dependency.......................................................................................................70 1.11.II :uality o) products in t e domestic mar4et.....................................................................70 1.11.III /n anced /0port potential.............................................................................................70 & 1) RECOMMENDATIONS *1 1.1;.I >on! Term.........................................................................................................................71 1.1;.II S ortB Medium Term........................................................................................................71 & 1, CONC.!SION *' % CHAPTER FIVE ! SERVICES SECTOR.....................................................................................#$ ) 1 SER/ICE SECTORS IN T#E WOR.D ECONOM% *3 ) ' T#E NEED "OR .I;ERA.IHATION O" SER/ICES *3 ) 3 T#E GENERA. AGREEMENT ON TRADE IN SER/ICES 3GATS4 *) ) & DO#A AGENDA *) ) ) I@!.% PACKAGEA *) ) , DE"INITION O" SER/ICES TRADE AND MODES O" S!PP.% *, ) * SC#ED!.ES O" COMMITMENT ** ) + SECTORS CO/ERED !NDER T#E GATS ** ) - E>EMPTED SER/ICES *+ ) 1$ RO.E AND RESPONSI;I.ITIES O" MEM;ER GO/ERNMENTS *+ ) 11 GATT /S GATS *) 1' CRITICA. AREAS O" GATS +$ ) 13 PAKISTAN AND T#E GATS +1 ;.1..I S are o) Services in t e /conomy o) ,a4istan..................................................................$1 ;.1..II S are o) Services sector in total employment..................................................................$2 ;.1..III A%TS and ,a4istan ........................................................................................................$1 ;.1..I" ,a4istan6s commitments in trade in Services..................................................................$1
9 9
&

;.1.." ,a4istan6s sc edule o) commitments...............................................................................$1 ;.1.."I =<*IC<NT%> &<MMITM/NTS7..................................................................................$; ;.1.."II S/&T<* S,/&IFI& &<MMITM/NTS7 ......................................................................$; ) 1& TE.ECOMM!NICATION SECTOR +) ;.11.I A%TS and Telecommunication..........................................................................................$3 ;.11.II ,a4istan6s &ommitments in Telecom Sector ,a4istan as made t e )ollo9in! commitments in t e Telecom Sector7......................................$3 ;.11.III ,a4istan6s &ompliance in t e Telecom sector7..............................................................$7 ;.11.I" Implications o) dere!ulation...........................................................................................$7 ) 1) PAKISTANAS COMMITMENTS IN "INANCIA. SER/ICES ++ ;.1;.I Insurance ..........................................................................................................................$$ ;.1;.II +an4in!............................................................................................................................$$ ;.1;.III Some ot er &ommitments...............................................................................................$;.1;.I" ,a4istan6s MFN /0emptions...........................................................................................$) 1, OPPORT!NITIES /ERS!S T#REATS -$ ;.13.I <pportunities.....................................................................................................................-0 ;.13.II ,ossible t reats................................................................................................................-0 ;.13.III Miti!ation o) t reats.......................................................................................................-0 ) 1* CONC.!SION -1 BIBLIOGRAPHY AND REFERENCES.........................................................................................9$
9 9
Abbreviations
Some of the abbreviations and acronyms used in the WTO:
AD, A-D AMS A"#$ A"TMA AS#A' AT$ $(D $TD $T# $)D DDA DS( DS* #"( #$ #+TA #* +AO -ATS -ATT -S" .S /0O /M+ /T$ /TO M#A M+A M+' Anti-dumping measures Aggregate measurement of support (agricu ture! Asia-"acific #conomic $ooperation A "a%istan Te&ti e Mi s Association Association of Southeast Asian 'ations Agreement on Te&ti es and $ othing $onvention on (io ogica Diversity $ommittee on Trade and Deve opment $ommittee on Trade and #nvironment $ountervai ing duty (subsidies! Doha Deve opment Agenda Dispute Sett ement (ody Dispute Sett ement *nderstanding #&port "romotion (ureau #uropean $ommunities #uropean +ree Trade Association #uropean *nion (officia y #uropean $ommunities in WTO! +ood and Agricu ture Organi,ation -enera Agreement on Trade in Services -enera Agreement on Tariffs and Trade -enera i,ed System of "references .armoni,ed $ommodity Description and $oding System /nternationa 0abour Organi,ation /nternationa Monetary +und /nternationa Trade $entre /nternationa Trade Organi,ation Mu ti atera environmenta agreement Mu tifibre Arrangement (rep aced by AT$! Most-favoured-nation
9 9

MT' 'T$ 'A+TA "A"AM "/"1O "S# "S/ S3D, SDT Mu ti atera trade negotiations 'ationa Tariff $ommission 'orth American +ree Trade Agreement "a%istan Automobi e "arts Manufacturer "a%istan /nte ectua "roperty 1ights Organisation "roducer subsidy e2uiva ent (agricu ture! "re-shipment inspection Specia and differentia treatment (for deve oping countries! South Asian Association for 1egiona $ooperation State (an% of "a%istan Sanitary and phytosanitary measures Te&ti e and $ othing Technica barriers to trade Te&ti es Monitoring (ody Trade 'egotiations $ommittee Trade "o icy 1evie4 (ody Trade "o icy 1evie4 Mechanism Trade-re ated investment measures Trade-re ated aspects of inte ectua property rights *nited 'ations *' $onference on Trade and Deve opment *' Deve opment "rogramme *' #nvironment "rogramme /nternationa *nion for the "rotection of 'e4 )arieties of " ants *ruguay 1ound )o untary e&port restraint )o untary restraint agreement Wor d $ustoms Organi,ation Wor d /nte ectua "roperty Organi,ation Wor d Trade Organi,ation
SAA1$ S(" S"S T3$ T(T TM( T'$ T"1( T"1M T1/Ms T1/"S *' *'$TAD *'D" *'#" *"O)
*1 )#1 )1A W$O W/"O WTO
9 9
Acknowledge ents
It Jas a :e06 8ni<8e and inte0esting eDpe0ience to Jo0k on t7is s6ndicate 0epo0t It Jas indeed a :e06 c7a11enging task to Jo0k on a topic J7ic7 is 7ig716 tec7nica1G 58t it 7as ce0tain16 gi:en 8s mo0e insig7t in WTO and 7oJ it ma6 impact Pakistan We a0e g0ate281 to Ci:i1 Se0:ices Academ6 2o0 p0o:iding 8s Jit7 t7e oppo0t8nit6 to Jo0k on a topic J7ic7 is :e06 0e1e:ant 2o0 Pakistan in t7e c800ent age o2 g1o5a1i=ation T7e s6ndicate is g0ate281 to a11 t7e 0eso80ce pe0sons and g8est speake0s J7o took g0eat pain and inte0est to app0ise t7e s6ndicate a5o8t WTO It Jas an 7ono80 2o0 8s to 1isten to and disc8ss t7e topic Jit7 t7ese disting8is7ed 1adies and gent1emen J7o a0e eDpe0ts in t7is 2ie1d And 1ast16G Je m8st eDtend o80 g0atit8de to M0 Asim Imdad A1iG t7e s6ndicate ad:iso0 J7o took g0eat pe0sona1 inte0est and g8ided 8s t70o8g7 e:e06 step o2 t7e 0esea0c7G 5eginning 20om making 8s 8nde0stand WTO to a00anging a11 t7e g8est speake0s and ti11 J0iting o2 t7is 0epo0t
C#AIRMAN S%NDICATE 1$
9 9
S!ndicate Me bers
$1&' C())(* T+,-*-*. P+(.+,))/ S0*1-2,'/ N(. 10 S0*1-2,'/ A13-&(+4 M0 Asim Imdad A1i S0*1-2,'/ C5,-+),*4 Haid ;in Ma<sood S/2+/',+04 #ama6o8n K7an ;a5a0 M/)6/+&4 "a0=ana A1ta2 3Ms 4 H85aida K7an8m3Ms 4 A1i !ma0 D0 S7ams98d9Din I<5a1 #8ssain .t Ame0 S81tan M87ammad @aJad Naeem I<5a1 C7eema Ri=Jan Memon S7a7id A1i S7i2aat A7mad Ka1eem Hia 80 Re7man Doint (irector %dministrationE &S%
9 9
Researc" Met"odolog!
Purpose of Research
T7e p80pose o2 t7is 0esea0c7 pape0 Jas to st8d6 and ana16=e t7e 7isto06G t7e t7eo0etica1 8nde0pinnings and t7e possi51e impact o2 WTO Jit7 specia1 0e2e0ence to ke6 economic secto0s o2 Pakistan T7is 0epo0t is di:ided into 2i:e pa0ts C7apte0 one is a 50ie2 7isto06 o2 WTO and some impo0tant g8iding p0incip1es J7ic7 2o0m t7e 5asis o2 WTO NeDt 2o80 c7apte0s disc8ss t7e ana16sis 0ega0ding t7e impacts WTO mig7t 7a:e on Ind8st06G TeDti1e and C1ot7ingG Ag0ic81t80eG and Se0:ices secto0s 0especti:e16 In o0de0 to a:oid 0epetitionG a sepa0ate conc18sion is not inc18ded at t7e end 58t eac7 c7apte0 c1oses Jit7 t7e conc18sions and 0ecommendations 0e1e:ant 2o0 t7at pa0tic81a0 secto0
Composition of Syndicate
"o0 t7e p80pose o2 t7is s6ndicateG 2o80 s859g0o8ps Je0e 2o0med 20om Jit7in t7e s6ndicate and assigned di22e0ent topics T7e topics and t7e s859g0o8ps 2o0med a0e gi:en 5e1oJC S76! G+(78 I Mem5e0s I*'+(172'-(* '( WTO ,*1 I)8,2' (9 WTO -* I*17&'+-,: S/2'(+ Haid ;in Ma<sood Naeem I<5a1 C7eema S7a7id A1i I)8,2' (9 WTO (* T/;'-:/& ,*1 C:('5-*. S/2'(+ #ama6o8n K7an ;a5a0 .t Ame0 S81tan "a0=ana A1ta2 3Ms 4 H85aida K7an8m 3Ms 4 I)8,2' (9 WTO (* A.+-27:'7+/ S/2'(+ I<5a1 #8ssain Ri=Jan Memon A1i !ma0 I)8,2' (9 WTO (* S/+3-2/& S/2'(+& M87ammad @aJad D0 S7ams98d9Din Hia 80 Re7man S7i2aat A7mad Ka1eem
9 9 1$
S76! G+(78 II Mem5e0s
S76! G+(78 III Mem5e0s
S76! G+(78 IV Mem5e0s
Met"odolog! #or Researc"

T7e main so80ce o2 in2o0mation data 0ega0ding WTO and Pakistan 7ad 5een :a0io8s p851ications o2 Inte0nationa1 and Nationa1 o0gani=ations i e WTOG Minist06 o2 "inanceG "ede0a1 ;80ea8 o2 Statistics and EDpo0t P0omotion ;80ea8 Anot7e0 maKo0 so80ce o2 in2o0mation Jas t7e inte0net especia116 t7e o22icia1 site o2 WTO To ana16se t7e data and come o8t Jit7 an6 conc18sions detai1ed disc8ssions Je0e 7e1d Jit7 man6 0eso80ce pe0sons and g8est speake0sG J7ic7 p0o:ed in:a18a51e 2o0 o80 p80poses T7e 1ist o2 t7e g8est speake0s is attac7ed at AnneD - o2 t7e anneD80e
9 9 11
E$ec%tive S%
ar!
Wo01d T0ade O0gani=ation stands 2o0 20ee0 and p0edicta51e t0ade 5etJeen co8nt0ies It aims to a5o1is7 t0ade disto0ting p0actices 5etJeen co8nt0ies s8c7 as <8otas and s85sidies in a p7ased manne0 It does not 7oJe:e0G aim at =e0o ta0i22s WTO 7as GATTG GATS and TRIPs as t7e main ag0eements Ag0eement on Ag0ic81t80e and Ag0eement on TeDti1e and C1ot7ing come 8nde0 GATT Pakistan 7as 5een t7e 2o8nding mem5e0 o2 GATT 1-&+ as Je11 as WTO T7is st8d6 attempts to ana16=e t7e impact o2 WTO on t7e impo0tant secto0s in Pakistan i e Ind8st06G TeDti1eG Ag0ic81t80e and Se0:ices As 2a0 as t7e ind8st0ia1 secto0 is conce0nedG at t7e moment Pakistan t7e main eDpo0t o2 Pakistan is TeDti1e and 0e1ated p0od8cts T7ese a0e disc8ssed sepa0ate16 in t7is 0epo0t T7e non9teDti1e eDpo0t o2 Pakistan is neg1igi51e T7is t0end needs to 5e c7anged as no co8nt06 s7o81d 0e16 so1e16 on t7e eDpo0t o2 one o0 2eJ p0od8cts On t7e Impo0t sideG Pakistan 0ecent16 7as 0ationa1i=ed its ta0i22 st08ct80e to a 1a0ge eDtent T7e a:e0age ta0i22 in Pakistan is a0o8nd 1* pe0cent Jit7 on16 2o80 ta0i22 s1a5s T7e0e s7o81d not 5e an6 ad:e0se a22ects on t7e domestic p0od8ce0 Jit7 t7e g1o5a1i=ation as t7e 1oca1 ind8st06 7as a10ead6 adK8sted to t7e inc0eased competition 20om g1o5a1 ma0ket T7is 7oJe:e0 does not 7o1d t08e 2o0 a8tomo5i1e ind8st06G J7ic7 sti11 enKo6s 7ig7 p0otection and needs to 5ecome e22icient i2 it Jants to s80:i:e T7e comp1ete integ0ation o2 a11 teDti1e p0od8cts into t7e 20ee t0ade en:i0onment a2te0 t7e p7asing o8t o2 M"A 8nde0 t7e Ag0eement on TeDti1e and C1ot7ing 3ATC4 on 1 st @an8a06 '$$) Ji11 5e one o2 t7e most signi2icant c7anges in t7e Jo01d t0ade 0egime 2o0 teDti1es in 0ecent 6ea0s T7e st08ct80e o2 PakistanAs econom6 2inds itse12 7ea:i16 dependent on t7e teDti1e and c1ot7ing 3T?C4 secto0 It is 5eca8se o2 t7e nat80e o2 teDti1e ind8st06 5eing 1a5o0 intensi:e and 0e<8i0ing 1ess capita1 and tec7nica1 ski11s #oJe:e0G t7e PakistanAs tota1 T?C eDpo0ts in Jo01d eDpo0ts a0e neg1igi51e T7e p7asing o8t o2 M"A can 5e :e06 signi2icant 2o0 Pakistan #oJe:e0 t7e0e a0e a 2eJ 2acto0s t7at m8st 5e taken into acco8nt 5e2o0e d0aJing an6 conc18sion Pakistan 7as ne:e0 0ea1i=ed its 2811 <8ota in !S and E! A:e0age <8ota 0ea1i=ation 56 Pakistan 7as on16 5een a0o8nd *$ L It is eit7e0 5eca8se o2 1oJ p0od8ction o0 5eca8se o2 1oJ <8a1it6 standa0ds o2 o80 p0od8ct making t7e demand 1ess 2o0 o80 p0od8cts in t7e de:e1oped 0ic7 pa0t o2 t7e Jo01d A <8ota920ee t0ade e0a ca11s 2o0 st08ct80a1 and ope0ationa1 adK8stments in t7e teDti1e secto0G to ena51e o80 eDpo0te0s to 5e g1o5a116 competiti:e C7ina is t7e 5iggest t70eat to Pakistan T?C p0od8cts at p0esent and in post ATC 0egime as Je11 T7e0e is no consens8s on t7e impact o2 t7e post9ATC scena0io Co8nt0ies 1ike Pakistan t7at Jas s7e1te0ed 56 t7e <8ota s6stem Ji11 5e 2o0ced to 8nde0take po1ic6 0e2o0ms and eDpo0t st0ategies aimed at inc0easing on competiti:eness and en7ancing :a18e added p0od8ction :ia imp0o:ing p0ocess e22icienc6 and p0od8ct <8a1it6 imp0o:ement t7at Ji11 7a:e spi119o:e0 e22ects on ot7e0 secto0s
9 9 1'
As 0ega0ds ag0ic81t80eG Pakistan 5eing an ag0a0ian econom6 is sti11 a net impo0te0 o2 2ood items T7e Ag0eement on Ag0ic81t80e is pe07aps one o2 t7e most cont0o:e0sia1 aspects o2 WTO T7e iss8es in AoA inc18de s85sidiesG domestic s8ppo0t and ma0ket access T7e de:e1oping co8nt0ies and t7e de:e1oped Jo01d a0e at 1ogge07eads o:e0 ag0ic81t80e T7e de:e1oping co8nt0ies 0e<8i0e an AoA t7at is 2ai0 K8st to meets 5ot7 ends meet J7i1e t7e de:e1oping co8nt0ies 0e<8i0e t7at t7e6 maintain t7ei0 stat8s <8o to p0otect t7ei0 7and281 o2 2a0me0s t70o8g7 s85sidies and domestic s8ppo0t As 2a0 as Pakistan is conce0nedG Pakistan 7as compa0ati:e ad:antage in man6 p0ima06 commodities ;8t in o0de0 to 28116 8ti1i=e o80 compa0ati:e ad:antageG Je need to 2oc8s on and so1:e t7e p0o51ems in s8pp16 side 3domestic 0e<8i0ements4 Pe0taining to TRIPSG di22e0ent :a0ieties o2 p1ants and anima1 species and t0aditiona1 p7a0mace8tica1 and 7e05a1 knoJ1edge need to 5e 0egiste0ed to take 2811 ad:antage o2 t7em A11 :a18a51e eDpo0t 50ands 1ike ;asmati 0iceG :a0ieties o2 mangoesG o0angesG etc need to 5e p0otected 8nde0 di22e0ent p0o:isions o2 TRIPS ag0eement "80t7e0mo0e Je need to eDp1oit o80 compa0ati:e ad:antage in t7e p0od8ction o2 meatG dai06 p0od8ctsG 208itsG :egeta51es etc Se0:ices a0e t7e 1a0gest and most d6namic component o2 5ot7 de:e1oped and de:e1oping co8nt06 economies Se0:ices c800ent16 acco8nt 2o0 o:e0 ,$ pe0cent o2 g1o5a1 p0od8ction and emp1o6ment It is impossi51e 2o0 an6 co8nt06 to p0ospe0 toda6 8nde0 t7e 580den o2 an ine22icient and eDpensi:e se0:ices in20ast08ct80e In PakistanG t7e Se0:ices secto0 cont0i58tes mo0e t7an 7a12 o2 t7e GDP Se0:ices acco8nt 2o0 &)L o2 t7e 1a5o80 2o0ce emp1o6ed in t7e co8nt06 S80p0ising16G t7e inte0nationa1 t0ade o2 Pakistan in se0:icesG inc18ding "DIG 2a11s neDt to me0c7andise t0ade Wo0ke0sA 0emittances acco8nt 2o0 t7e 1a0gest component o2 se0:ices and t7e co8nt06 7as a 1a0ge n8m5e0 o2 eDpat0iates t70o8g7o8t t7e Jo01d ;eing a de:e1oping co8nt06G Pakistan adopted a ca8tio8s app0oac7 J7i1e making commitments in t0ade in se0:ices #oJe:e0G t7e act8a1 po1ic6 o2 t7e go:e0nment is 2a0 1i5e0a1 as compa0ed to t7e 5inding commitments sc7ed81ed in GATS Pakistan 7as made some 7o0i=onta1 commitments t7at app16 ac0oss t7e 5oa0dG J7i1e in siD secto0s speci2ic commitments 7a:e 5een made T7ese inc18de ;8siness se0:icesG Const08ction and 0e1ated enginee0ing se0:icesG To80ism and t0a:e1 0e1ated se0:icesG #ea1t7 and 0e1ated socia1 se0:icesG Te1ecomm8nication se0:icesG and 2inancia1 se0:ices PakistanAs commitments in t7e GATS a0e most16 t7ose t7at 0e<8i0e comme0cia1 p0esenceG 5eca8se it is mo0e 1ike16 to 1ead to t0ans2e0 o2 tec7no1og6G emp1o6ment9 gene0ationG and t0ans2e0 o2 neJ management tec7ni<8es Access t70o8g7 comme0cia1 p0esence a1so a11oJs t7e co8nt06 to eDe0cise its mac0oeconomic managementG K80isdiction and s8pe0:ision mo0e e22ecti:e16 as compa0ed to t7e c0oss 5o0de0 s8pp16 mode On t7e ot7e0 7andG 2inancia1 se0:ices Jo81d 0e<8i0e 20ee mo:ement o2 capita1 in21oJs and o8t21oJs associated Jit7 t7e acti:it6 1i5e0a1i=edG J7e0eas comme0cia1 p0esence on16 0e<8i0es 20ee inJa0d mo:ement o2 capita1 #enceG PakistanAs commitments a0e no di22e0ent 20om t7e commitments o2 ot7e0 de:e1oping co8nt0ies
9 9 13
& C"a'ter One ( Introd%ction to )*O 11 Introduction

T7e Wo01d T0ade O0gani=ation 3WTO4 dea1s Jit7 t7e 081es o2 t0ade 5etJeen nations at a g1o5a1 o0 nea09g1o5a1 1e:e1 ItAs an o0gani=ation 2o0 1i5e0a1i=ing t0ade ItAs a 2o08m 2o0 go:e0nments to negotiate t0ade ag0eements ItAs a p1ace 2o0 t7em to sett1e t0ade disp8tes It ope0ates a s6stem o2 t0ade 081es Essentia116G t7e WTO is a p1ace J7e0e mem5e0 go:e0nments goG to t06 to so0t o8t t7e t0ade p0o51ems t7e6 2ace Jit7 eac7 ot7e0 T7e 2i0st step is to ta1k T7e WTO Jas 5o0n o8t o2 negotiationsG and e:e06t7ing t7e WTO does is t7e 0es81t o2 negotiations T7e 581k o2 t7e WTOAs c800ent Jo0k comes 20om t7e 1-+,M-& negotiations ca11ed t7e !08g8a6 Ro8nd and ea01ie0 negotiations 8nde0 t7e Gene0a1 Ag0eement on Ta0i22s and T0ade 3GATT4 T7e WTO is c800ent16 t7e 7ost to neJ negotiationsG 8nde0 t7e NDo7a De:e1opment AgendaO 1a8nc7ed in '$$1 At its 7ea0t a0e t7e WTO ag0eementsG negotiated and signed 56 t7e 581k o2 t7e Jo01dAs t0ading nations T7ese doc8ments p0o:ide t7e 1ega1 g0o8nd9081es 2o0 inte0nationa1 comme0ce T7e6 a0e essentia116 cont0actsG 5inding go:e0nments to keep t7ei0 t0ade po1icies Jit7in ag0eed 1imits A1t7o8g7 negotiated and signed 56 go:e0nmentsG t7e goa1 is to 7e1p p0od8ce0s o2 goods and se0:icesG eDpo0te0sG and impo0te0s cond8ct t7ei0 58sinessG J7i1e a11oJing go:e0nments to meet socia1 and en:i0onmenta1 o5Kecti:es T7e s6stemAs o:e00iding p80pose is to 7e1p t0ade 21oJ as 20ee16 as possi51e so 1ong as t7e0e a0e no 8ndesi0a51e side9e22ects T7at pa0t16 means 0emo:ing o5stac1es It a1so means ens80ing t7at indi:id8a1sG companies and go:e0nments knoJ J7at t7e t0ade 081es a0e a0o8nd t7e Jo01dG and gi:ing t7em t7e con2idence t7at t7e0e Ji11 5e no s8dden c7anges o2 po1ic6 In ot7e0 Jo0dsG t7e 081es 7a:e to 5e Nt0anspa0entO and p0edicta51e Anot7e0 impo0tant side to t7e WTOAs Jo0k is disp8te sett1ement T0ade 0e1ations o2ten in:o1:e con21icting inte0ests Ag0eementsG inc18ding t7ose painstaking16 negotiated in t7e WTO s6stemG o2ten need inte0p0eting T7e most 7a0monio8s Ja6 to sett1e t7ese di22e0ences is t70o8g7 some ne8t0a1 p0oced80e 5ased on an ag0eed 1ega1 2o8ndation T7at is t7e p80pose 5e7ind t7e disp8te sett1ement p0ocess J0itten into t7e WTO ag0eements
1!
"istory of #TO
T7e WTO 5egan 1i2e on 1 @an8a06 1--)G 58t its t0ading s6stem is 7a12 a cent806 o1de0 Since 1-&+G t7e Gene0a1 Ag0eement on Ta0i22s and T0ade 3GATT4 7ad p0o:ided t7e 081es 2o0 t7e s6stem 3T7e second WTO ministe0ia1 meetingG 7e1d in Gene:a in Ma6 1--+G inc18ded a ce1e50ation o2 t7e )$t7 anni:e0sa06 o2 t7e s6stem 4
9 9 1&
It did not take 1ong 2o0 t7e Gene0a1 Ag0eement to gi:e 5i0t7 to an 8no22icia1G de 2acto inte0nationa1 o0gani=ationG a1so knoJn in2o0ma116 as GATT O:e0 t7e 6ea0s GATT e:o1:ed t70o8g7 se:e0a1 0o8nds o2 negotiations
Year 5678 5676 56;5 Place/ name -eneva Annecy Tor2uay Subjects covered Tariffs Tariffs Tariffs Countries 9: 5: :< 9= 9= =9
56;= -eneva Tariffs 56=>?56=5 -eneva (Di on 1ound! Tariffs 56=7?56=8 -eneva (@ennedy 1ound! Tariffs and anti-dumping measures
568:?5686 -eneva (To%yo 1ound! Tariffs, non-tariff measures, Aframe4or%B agreements 5>9 56<=?5667 -eneva (*ruguay 1ound! Tariffs, non-tariff measures, ru es, services, inte ectua 59: property, dispute sett ement, te&ti es, agricu ture, creation of WTO, etc
Pi1dat A8g8st '$$31
T7e 1ast and 1a0gest GATT 0o8ndG Jas t7e !08g8a6 Ro8nd J7ic7 1asted 20om 1-+, to 1--& and 1ed to t7e WTOAs c0eation W7e0eas GATT 7ad main16 dea1t Jit7 t0ade in goodsG t7e WTO and its ag0eements noJ co:e0 t0ade in se0:icesG and in t0aded in:entionsG c0eations and designs 3inte11ect8a1 p0ope0t64 T7e WTO 0ep1aced GATT as an inte0nationa1 o0gani=ationG 58t t7e Gene0a1 Ag0eement sti11 eDists as t7e WTOAs 8m50e11a t0eat6 2o0 t0ade in goodsG 8pdated as a 0es81t o2 t7e !08g8a6 Ro8nd negotiations T0ade 1aJ6e0s disting8is7 5etJeen GATT 1--&G t7e 8pdated pa0ts o2 GATTG and GATT 1-&*G t7e o0igina1 ag0eement J7ic7 is sti11 t7e 7ea0t o2 GATT 1--&
13
Import $uotas and Tariffs
Man6 co8nt0ies 8se impo0t <8otas and ta0i22s to keep t7e domestic p0ice o2 a p0od8ct 7ig7e0 t7an Jo01d 1e:e1s and t7e0e56 ena51e t7e domestic ind8st06 to enKo6 7ig7e0 p0o2its t7an it Jo81d 8nde0 20ee t0ade Wit7o8t a <8ota o0 ta0i22G a co8nt06 Ji11 impo0t a good J7en its Jo01d
1
T7e WTO Regime and Imp1ications 2o0 Pakistan
9 9 1)
p0ice is 5e1oJ t7e ma0ket p0ice t7at Jo81d p0e:ai1 i2 t7e0e Je0e no impo0ts "ig80e A s7oJs t7is S and D a0e t7e domestic s8pp16 and demand c80:es I2 t7e0e Je0e no impo0tsG t7e domestic p0ice and <8antit6 demanded Jo81d 5e Po and (oG J7ic7 e<8ate s8pp16 and demand ;8t t7e Jo01d p0ice PJ is 5e1oJ PoG so domestic cons8me0s 7a:e an incenti:e to p80c7ase 20om a50oad and Ji11 do so i2 impo0ts a0e not 0est0icted #oJ m8c7 Ji11 5e impo0tedP T7e domestic p0ice Ji11 2a11 to t7e Jo01d p0ice PJQ at t7is 1oJe0 p0iceG domestic p0od8ction Ji11 2a11 to (sG and domestic cons8mption Ji11 0ise to (d Impo0ts a0e t7en t7e di22e0ence 5etJeen domestic cons8mption and domestic p0od8ctionG (d M (s NoJ s8ppose t7e go:e0nmentG 5oJing to p0ess80es 20om t7e domestic ind8st06G e1iminates impo0ts 56 imposing a <8ota o2 =e0o M t7at isG 2o05idding an6 impo0ts NoJ t7e domestic p0ice Ji11 0ise to Po Cons8me0s J7o sti11 p80c7ase t7e good 3in <8antit6 (o4 Ji11 pa6 mo0e and Ji11 1ose an amo8nt o2 s80p18s gi:en 56 t0ape=oid A and t0iang1e ; A1soG some cons8me0s Ji11 no 1onge0 586 t7e goodG so t7e0e is an additiona1 1oss o2 cons8me0 s80p18sG gi:en 56 t0iang1e C On t7e ot7e0 7and p0od8ce0 s80p18s Jo81d inc0ease as o8tp8t is 7ig7e0 3(o instead o2 (s4 and is so1d at a 7ig7e0 p0ice 3Po instead o2 PJ4 So p0od8ce0 s80p18s inc0eases 56 t0ape=oid A So Je see t7at gain in p0od8ce0 s80p18s is 1ess t7an 1oss in cons8me0 s80p18s and as a J7o1e t7e0e is a 1oss o2 ; and C to t7e econom6 Simi1a0 is t7e case Jit7 ta0i22s T7e ta0i22 Jo81d 7a:e to 5e e<8a1 to o0 g0eate0 t7an di22e0ence 5etJeen Po and PJ to 0est0ict a11 t7e impo0ts Wit7 s8c7 a 7ig7 ta0i22 t7e0e Jo81d 5e no impo0ts and 7ence no 0e:en8e to t7e go:e0nmentG t7e 0est o2 t7e ana16sis Jo81d 0emain t7e same as <8otas ;8t i2 t7e ta0i22 is 1ess t7an t7is di22e0enceG t7e go:e0nment gains ta0i22 0e:en8e 58t sti11 t7e0e is a dead Jeig7t 1oss as can 5e seen in "ig80e ;
9 9 1,
1%
Ar&uments for Protection
In o0de0 to K8sti26 ta0i22s and <8otas co8nt0ies p0esent di22e0ent a0g8ments J7ic7 a0e disc8ssed 5e1oJC Some co8nt0ies 8se 7ig7 ta0i22s and <8otas to gi:e its oJn ind8st0ies in a neJ secto0 to de:e1op Jit7o8t t7e t70eat o2 2o0eign competition T7is is knoJn as infant industry a0g8ment Diversification of Industry a0g8ment sa6s t7at a co8nt06 s7o81d not depend on t7e p0od8ction o2 2eJ goodsG 0at7e0 it s7o81d di:e0si26 its p0od8ction 5ase and 7ence p0otection is 0e<8i0ed to ena51e di:e0si2ication into t7ose a0eas J7e0e t7at co8nt06 does not 7a:e compa0ati:e ad:antage Employment argument states t7at ind8st0ia1 de:e1opment t70o8g7 p0otection inc0eases emp1o6ment in t7e co8nt06 T7e defence argument sa6s t7at a co8nt06 m8st enco80age t7ose ind8st0ies J7ic7 a0e necessa06 2o0 t7e de2ence o2 t7e co8nt06 To maintain a t0ade s80p18sG it is impe0ati:e t7at eDpo0ts a0e mo0e t7an impo0ts P0otectionism is a Ja6 to 0ecti26 p0o51ems in alance of paymentsG J7e0e56 impo0ts a0e 0est0icted t70o8g7 7ig7 ta0i22s P0otection a1so 5ecomes impo0tant against unfair competitionG 0es81ting 20om d8mpingG s85sidies and dep0eciated eDc7ange 0ates
9 9 1*
1'
#hy a need for (ree Trade
T7e data s7oJ a de2inite statistica1 1ink 5etJeen 20ee0 t0ade and economic g0oJt7 Economic t7eo06 points to st0ong 0easons 2o0 t7e 1ink A11 co8nt0iesG inc18ding t7e World trade and production have poo0estG 7a:e assets R 78manG ind8st0ia1G accelerated (oth trade and -D" fe in the ate 569>s, before nat80a1G 2inancia1 R J7ic7 t7e6 can bottoming out in 56:9C After Wor d War //, both emp1o6 to p0od8ce goods and se0:ices 2o0 have risen e&ponentia y, most of the time 4ith outpacing -D"C t7ei0 domestic ma0kets o0 to compete trade (56;> D 5>>C Trade and -D": og sca e! o:e0seas Economics te11s 8s t7at Je can +,,, 5ene2it J7en t7ese goods and se0:ices a0e t0aded Simp16 p8tG t7e p0incip1e o2 Merchandise trade Ncompa0ati:e ad:antageO sa6s t7at &,,, co8nt0ies p0ospe0 2i0st 56 taking ad:antage o2 t7ei0 assets in o0de0 to concent0ate on GDP J7at t7e6 can p0od8ce 5estG and t7en 56 t0ading t7ese p0od8cts 2o0 p0od8cts t7at +,, ot7e0 co8nt0ies p0od8ce 5est S8ccess in t0ade is not static T7e a5i1it6 to compete Je11 in pa0tic81a0 p0od8cts can &,, s7i2t 20om compan6 to compan6 J7en t7e GATT WTO created created ma0ket c7anges o0 neJ tec7no1ogies make 4, &-+-. /+ /0 10 2, 3, 0, -, &--4 c7eape0 and 5ette0 p0od8cts possi51e So80ceC !nde0standing WTO P0od8ce0s a0e enco80aged to adapt g0ad8a116 and in a 0e1ati:e16 pain1ess Ja6 T7e6 can 2oc8s on neJ p0od8ctsG 2ind a neJ Nnic7eO in t7ei0 c800ent a0ea o0 eDpand into neJ a0eas EDpe0ience s7oJs t7at competiti:eness can a1so s7i2t 5etJeen J7o1e co8nt0ies A co8nt06 t7at ma6 7a:e enKo6ed an ad:antage 5eca8se o2 1oJe0 1a5o80 costs o0 5eca8se it 7ad good s8pp1ies o2 some nat80a1 0eso80cesG co81d a1so 5ecome 8ncompetiti:e in some goods o0 se0:ices as its econom6 de:e1ops #oJe:e0G Jit7 t7e stim818s o2 an open econom6G t7e co8nt06 can mo:e on to 5ecome competiti:e in some ot7e0 goods o0 se0:ices T7is is no0ma116 a g0ad8a1 p0ocess
C()8,+,'-3/ ,13,*',./ T7is is a0g8a516 t7e sing1e most poJe0281 insig7t into economics S8ppose co8nt06 A is 5ette0 t7an co8nt06 ; at making a8tomo5i1esG and co8nt06 ; is 5ette0 t7an co8nt06 A at making 50ead It is o5:io8s 3t7e academics Jo81d sa6 Nt0i:ia1O4 t7at 5ot7 Jo81d 5ene2it i2 A specia1i=ed in a8tomo5i1esG ; specia1i=ed in 50ead and t7e6 t0aded t7ei0 p0od8cts T7at is a case o2 a5so18te ad:antage ;8t J7at i2 a co8nt06 is 5ad at making e:e06t7ingP Wi11 t0ade d0i:e a11 p0od8ce0s o8t o2 58sinessP T7e ansJe0G acco0ding to Rica0doG is no T7e 0eason is t7e p0incip1e o2 compa0ati:e ad:antage
9 9 1+
It sa6sG co8nt0ies A and ; sti11 stand to 5ene2it 20om t0ading Jit7 eac7 ot7e0 e:en i2 A is 5ette0 t7an ; at making e:e06t7ing I2 A is m8c7 mo0e s8pe0io0 at making a8tomo5i1es and on16 s1ig7t16 s8pe0io0 at making 50eadG t7en A s7o81d sti11 in:est 0eso80ces in J7at it does 5est R p0od8cing a8tomo5i1es R and eDpo0t t7e p0od8ct to ; ; s7o81d sti11 in:est in J7at it does 5est R making 50ead R and eDpo0t t7at p0od8ct to AG e:en i2 it is not as e22icient as A ;ot7 Jo81d sti11 5ene2it 20om t7e t0ade A co8nt06 does not 7a:e to 5e 5est at an6t7ing to gain 20om t0ade T7at is compa0ati:e ad:antage T7e t7eo06 dates 5ack to c1assica1 economist Da:id Rica0do It is one o2 t7e most Jide16 accepted among economists It is a1so one o2 t7e most mis8nde0stood among non9economists 5eca8se it is con28sed Jit7 a5so18te ad:antage It is o2ten c1aimedG 2o0 eDamp1eG t7at some co8nt0ies 7a:e no compa0ati:e ad:antage in an6t7ing T7at is :i0t8a116 impossi51e ?nderstandin! 8T<2
Ne:e0t7e1essG t7e temptation to Ja0d o22 t7e c7a11enge o2 competiti:e impo0ts is a1Ja6s p0esent And 0ic7e0 go:e0nments a0e mo0e 1ike16 to 6ie1d to t7e si0en ca11 o2 p0otectionismG 2o0 s7o0t te0m po1itica1 gain R t70o8g7 s85sidiesG comp1icated 0ed tapeG and 7iding 5e7ind 1egitimate po1ic6 o5Kecti:es s8c7 as en:i0onmenta1 p0ese0:ation o0 cons8me0 p0otection as an eDc8se to p0otect p0od8ce0s P0otection 81timate16 1eads to 51oatedG ine22icient p0od8ce0s s8pp16ing cons8me0s Jit7 o8tdatedG 8natt0acti:e p0od8cts In t7e endG 2acto0ies c1ose and Ko5s a0e 1ost despite t7e p0otection and s85sidies I2 ot7e0 go:e0nments a0o8nd t7e Jo01d p80s8e t7e same po1iciesG ma0kets cont0act and Jo01d economic acti:it6 is 0ed8ced One o2 t7e o5Kecti:es t7at go:e0nments 50ing to WTO negotiations is to p0e:ent s8c7 a se129 de2eating and dest08cti:e d0i2t into p0otectionism
1)
*nderstandin& the #TO
T7e WTO s6stem as it 7as eme0ged 20om t7e !08g8a6 Ro8nd noJ consists o2 t7e 2o11oJing main s85stanti:e Ag0eementsC I M81ti1ate0a1 Ag0eement on T0ade in Goods inc18ding t7e Gene0a1 Ag0eement on Ta0i22s and T0ade 3GATT 1--&4 and its associated Ag0eements II Gene0a1 Ag0eement on T0ade in Se0:ices 3GATS4 III Ag0eement on T0ade9Re1ated Aspects o2 Inte11ect8a1 P0ope0t6 Rig7ts 3TRIPs4 T7e 1ega1 inst08ments t7at noJ 2o0m t7e WTO s6stem a0eC Ma00akes7 Ag0eement Esta51is7ing t7e Wo01d T0ade O0gani=ation M81ti1ate0a1 Ag0eements o T0ade in Goods Gene0a1 Ag0eement on Ta0i22s and T0ade 3GATT 1--&4
'
!nde0standing T7e WTO '$$3
9 9 1-
Associated Ag0eements !08g8a6 Ro8nd P0otoco1 GATT 1--& Ag0eement on Ag0ic81t80e Ag0eement on t7e App1ication o2 Sanita06 and P76tosanita06 Meas80e 3SPS4 Ag0eement on TeDti1es and C1ot7ing Ag0eement on Tec7nica1 ;a00ie0s to T0ade 3T;T4 Ag0eement on T0ade Re1ated In:estment Meas80e 3TRIMs4 Ag0eement on Imp1ementation o2 A0tic1e /I o2 GATT 1--& 3Anti9d8mping4 Ag0eement on Imp1ementation o2 A0tic1e /II o2 GATT 1--& 3C8stoms /a18ation4 Ag0eement on P0e s7ipment Inspection 3PSI4 Ag0eement on R81es o2 O0igin Ag0eement on Impo0t .icensing P0oced80es Ag0eement on S85sidies and Co8nte0:ai1ing Meas80es 3CSM4 Ag0eement on Sa2eg8a0ds o T0ade in Se0:ices Gene0a1 Ag0eement on T0ade in Se0:ices 3GATS4 o Inte11ect8a1 P0ope0t6 Rig7ts 3IPRs4 Ag0eement on T0ade9Re1ated Aspects o2 Inte11ect8a1 P0ope0t6 Rig7ts 3TRIPs4 P180i1ate0a1 T0ade Ag0eements o Ag0eement on T0ade in Ci:i1 Ai0c0a2ts o Ag0eement on Go:e0nment P0oc80ement
1+
&535I
Guidin& Princip,es of #TO

Most 6avo%red 7ation *reat ent 8M679
T7e most impo0tant and 28ndamenta1 p0incip1e o2 WTO is non9disc0iminato06 t0eatment An6 ad:antageG 2a:o80G p0i:i1ege o0 imm8nit6 g0anted 56 one WTO mem5e0 to anot7e0 3s8c7 as 1oJe0 c8stoms d8t6 to one4 7as to 5e g0anted immediate16 and 8nconditiona116 to a11 ot7e0 mem5e0s In case o2 goods M"N t0eatment app1ies to c8stoms d8tiesG ot7e0 5o0de0 d8ties and c7a0gesG 081es and 0eg81ations 0e1ating to impo0ts and eDpo0tsG met7ods o2 1e:6ing c8stoms d8ties and inte0nationa1 t0ans2e0s o2 pa6ments 2o0 impo0ts o0 eDpo0ts C8stoms 8nions and 20ee t0ade ag0eementsG on t7e ot7e0 7andG a0e negotiated 8nde0 a specia1 eDception to t7e M"N P0incip1e 3GATT A0tic1e >>I/4 S8c7 2a:o80a51e t0eatments need not 5e eDtended to a11 ot7e0 WTO mem5e0s
9 9 '$
&535II
7ational *reat ent
T7e p0incip1e o2 nationa1 t0eatment imp1ies t7at impo0ted goods Ji11 5e gi:en t0eatment t7at is no 1ess 2a:o80a51e t7an t7at gi:en to domestic goods T7is p0incip1e o2 gi:ing same t0eatment to ot7e0s as to oneAs oJn nationa1 is 8n<8a1i2ied in case o2 goods
&535III Stabilit! and 'redictabilit! t"ro%g" binding

T7e sta5i1it6 and p0edicta5i1it6 o2 t0ading conditions is anot7e0 5asic p0incip1e o2 t7e WTO Sta51e and p0edicta51e conditions o2 access to ma0kets p0omote con2idence 5eca8se in:esto0s and t0ade0s can p1an t7ei0 in:estments sec80e in t7e knoJ1edge t7at ma0ket access conditions Ji11 not c7ange 2o0 t7e Jo0se T7is is ac7ie:ed t70o8g7 t7e 5indings o2 ta0i22 Ta0i22s on di22e0ent p0od8cts t7at a0e 0ed8ced o0 ag0eed to in t0ade negotiations a0e 5o8ndG t7at isG a co8nt06 ag0ees t7at it Ji11 not 1e:6 ta0i22s at 0ates 7ig7e0 t7an t7ose ag0eed to As 0ega0ds ind8st0ia1 p0od8cts de:e1oped co8nt0ies 7a:e 5o8nd ta0i22s on p0actica116 a11 p0od8ctsG J7i1e de:e1oping co8nt0ies 7a:e 5o8nd t7em 2o0 mo0e t7an *$ pe0cent o2 t7ei0 p0od8cts 3 Eac7 co8nt06 in its sc7ed81e o2 ta0i22 concessions and commitments 0eco0ds 5o8nd 0ates o2 ta0i22s 2o0 di22e0ent p0od8cts
&535IV *rans'arenc!
WTO 081es o51ige mem5e0 co8nt0ies to ens80e t0anspa0enc6 in t7ei0 2o0eign t0ade 0egimes 56 0e<8i0ing t7em to p851is7 a11 1aJsG 0eg81ationsG meas80es and administ0ati:e decisions a22ecting t0ade T7e p851ication o2 1aJs 7as to 5e done in a manne0 t7at a11oJs impo0te0sG eDpo0te0sG cons8me0s and in:esto0s to 5e aJa0e o2 t7em T0anspa0enc6 is a1so ens80ed 56 0e<8i0ing mem5e0 co8nt0ies to s85mit pe0iodic noti2ication to t7e WTO sec0eta0iat on di22e0ent aspects o2 t7e t0ade 0egime
&535V
*rade liberali:ation
One o2 t7e p0incip1es o2 t7e WTO is p0og0essi:e 1i5e0a1i=ation o2 t0ade T7is p0incip1e is 0ooted in t7e 5e1ie2 t7at t7e 0emo:a1 o0 0ed8ction o2 t0ade 5a00ie0s 0es81ts in an eDpansion o2 inte0nationa1 t0ade t7at is to t7e 5ene2it o2 a11 co8nt0ies
1&505I
A&reements Concernin& Trade in Goods

Agree ent on S%bsidies and Co%ntervailing eas%res
T7e !08g8a6 Ro8nd Ag0eement on S85sidies and Co8nte0:ai1ing Meas80es 3SCM4 1a6s doJn 081es on t7e s85sidies 2o0 ind8st0ia1 p0od8cts and on co8nte0:ai1ing d8ties to co8nte0act t7e e22ects o2 s85sidies S85sidies a0e di:ided into t70ee catego0iesQ p0o7i5ited s85sidiesG actiona51e s85sidies and non9actiona51e s85sidies EDpo0t s85sidies and t7ose contingent on t7e 8se o2 domestic as opposed to impo0ted p0od8cts a0e catego0i=ed as p0o7i5ited s85sidies #oJe:e0G 1east de:e1oped co8nt0ies 3.DCAs4 and de:e1oping co8nt0ies Jit7 pe0 capita income o2 1ess t7an S 1G$$$ a0e eDempt 20om t7is 0est0iction and ma6 8se p0o7i5ited s85sidies Non9actiona51e
3
WTO O22icia1 Je5 site
9 9 '1
s85sidies inc18de t7ose 2o0 0esea0c7 and de:e1opmentG 2o0 5ackJa0d 0egions and 2o0 en:i0onmenta1 0egions A11 t7e 0emaining s85sidies a0e actiona51e s85sidies
&505II
Agree ent on Anti(D% 'ing
T7e Ag0eement on Anti9d8mping e1a5o0ates t7e p0o:isions o2 A0tic1e /I o2 GATT 1--& T7e GATT p0o:ides t7e 0ig7t to t7e cont0acting pa0ties to app16 anti9d8mping meas80es i e meas80es against impo0ts o2 a p0od8ct at an eDpo0t p0ice 5e1oJ its Nno0ma1 :a18eOG i2 s8c7 d8mped impo0ts ca8sed inK806 to a domestic ind8st06 in t7e te00ito06 o2 t7e impo0t cont0acting pa0t6
&505III Agree ent on Sa#eg%ards

W7e0eas t7e ag0eements on anti9d8mping and SCM p0o:ide 0emedies 2o0 domestic p0od8ce0s i2 t7e6 a0e 780t 56 8n2ai0 impo0tsG t7e Ag0eement on Sa2eg8a0ds p0o:ides 0emedies 2o0 domestic p0od8ce0s inK80ed 56 2ai016 t0aded impo0ts It a11oJs t7e 8se o2 tempo0a06 p0otecti:e meas80es 58t sets 081es to g8a0d against t7e a58se o2 s8c7 meas80es
&505IV Agree ent on *rade Related Invest ent Meas%res 8*RIMS9

T7e TRIMs Ag0eement identi2ies t0ade90e1ated meas80es t7at a0e against t7e p0o:isions o2 GATTG especia116 A0tic1e III and >I o2 t7e GATTG and p0o7i5its t7e 8se o2 s8c7 meas80es TRIMs 5asica116 consists o2 in:estment incenti:esG s8c7 as s85sidiesG in:estment g0ants and a11oJancesG p0io0it6 access to c0editG taD 0e1ie2 and eDemptionG ta0i22 p0otection and ot7e0 2o0ms o2 2isca1G 2inancia1 and comme0cia1 ind8cements 2o0 in:estment and pe02o0mance 0e<8i0ementsG s8c7 as 1oca1 contentG t0ade95a1ancing and eDpo0t 0e<8i0ements T7e ag0eement 0ecogni=es t7at ce0tain in:estment meas80es 0est0ict and disto0t t0ade It p0o:ides t7at no cont0acting pa0t6 s7a11 app16 an6 TRIMs inconsistent Jit7 nationa1 t0eatment and p0o7i5ition o2 <8antitati:e 0est0ictions o2 t7e GATT
&505V
Agree ent on *ec"nical ;arriers to *rade 8*;*9 and on Sanitar! and <"!tosanitar! Meas%res 8S<S9
T7e T;T and SPS Ag0eements do not <8estion t7e 0ig7t o2 go:e0nments to 8se tec7nica1 0eg81ationsG standa0ds and sanita06 and p76tosanita06 meas80es 2o0 7ea1t7 and sa2et6 0easons #oJe:e0G t7e ag0eements make p0o:isions p0o7i5iting t7e 8se o2 s8c7 meas80es to c0eate 8nnecessa06 o5stac1es to t0ade
&505VI Agree ent on *rade Related As'ects o# Intellect%al <ro'ert! Rig"ts 8*RI<s9
Wit7 t7e inc0easing g1o5a1i=ation o2 58siness acti:itiesG competitionG tec7no1ogica1 capa5i1ities and t7e app0op0iations and di228sion o2 tec7no1og6G inte11ect8a1 p0ope0t6 7as eme0ged as a neJ 5asis o2 compa0ati:e ad:antage
9 9 ''
T7e TRIPs co:e0s a0eas 1ike cop60ig7t and 0e1ated 0ig7tsG t0adema0ksG geog0ap7ica1 indicationsG ind8st0ia1 designsG patentsG t7e 1a69o8t designs o2 Integ0ated ci0c8its and disc1osed in2o0mation inc18ding t0ade sec0ets T7e ag0eement sets o8t gene0a1 p0o:isions and 5asic p0incip1esG nota516 a nationa1 t0eatment commitment 8nde0 J7ic7 t7e nationa1s o2 ot7e0 pa0ties m8st 5e gi:en t0eatment no 1ess 2a:o80a51e t7an t7at acco0ded to pa0t6As oJn nationa1s Jit7 0ega0d to t7e p0otection o2 inte11ect8a1 p0ope0t6 It a1so contains t7e M"N c1a8se J7ic7 is a no:e1t6 in an inte0nationa1 inte11ect8a1 p0ope0t6 ag0eement
1.
&5-5I
*"e State o# Market Access as a Res%lt o# )*O %

Red%ction in *ari##s
As a 0es81t o2 negotiations 7e1d p0io0 to !08g8a6 Ro8nd 3!R4G t7e a:e0age 1e:e1s o2 ta0i22 in de:e1oped co8nt0ies 7ad come doJn 20om 7ig7 1e:e1s o2 a0o8nd &$ pe0cent to a5o8t 1$ pe0cent T7is a:e0age 1e:e1 Jas 280t7e0 0ed8ced in t7e !R 56 &$ pe0cent o:e0a11 De:e1oping and t0ansitiona1 economies a1so c8t t7ei0 ta0i22sG 58t 56 a 1oJe0 2ig80e o2 3$ pe0cent .DCAs Je0e not 0e<8i0ed to ma0k 0ed8ction in t7ei0 ta0i22s on a pe0centage 5asis 58t Je0e enco80aged to ma0k token 0ed8ction in se1ected p0od8cts In additionG de:e1oped co8nt0ies and ce0tain de:e1oping co8nt0ies a1so ag0eed in t7e !R to e1iminate a11 ta0i22s in ce0tain secto0sG t7e so ca11ed =e0o92o09=e0o secto0s T7ese inc18ded p7a0mace8tica1sG ag0ic81t80a1 e<8ipmentG const08ction e<8ipmentG medica1 e<8ipmentG 280nit80eG pape0G stee1 and to6s As a 0es81t o2 t7ese and ot7e0 concessionsG t7e p0opo0tion o2 ind8st0ia1 p0od8cts ente0ing de:e1oped co8nt0ies on an M"N d8t6920ee 5asis Jas eDpected to do851e 20om '' pe0cent to && pe0cent
&5-5II
;inding on *ari##s
Anot7e0 impo0tant aspect o2 negotiations Jas t7e p0og0ess made in 5inding ta0i22s /i0t8a116 a11 impo0ts into de:e1oped co8nt0ies o2 5ot7 ind8st0ia1 and ag0ic81t80a1 p0od8cts noJ ente0 8nde0 5o8nd 0atesQ t7e p0opo0tion 2o0 de:e1oping co8nt0ies and t0ansition economies a0e *3 pe0cent and -+ pe0cent 0especti:e16 As a10ead6 disc8ssedG one o2 t7e maKo0 ad:antages o2 5inding is t7e sec80it6 o2 access it p0o:ides to 2o0eign ma0kets
&5&, Do"a Develo' ent Agenda

At t7e "o80t7 Ministe0ia1 Con2e0ence in Do7aG (ata0G in No:em5e0 '$$1 WTO mem5e0 go:e0nments ag0eed to 1a8nc7 neJ negotiations T7e6 a1so ag0eed to Jo0k on ot7e0 iss8esG in pa0tic81a0 t7e imp1ementation o2 t7e p0esent ag0eements T7e enti0e package is ca11ed t7e Do7a De:e1opment Agenda 3DDA4
&5&,5I I 'le entation(related iss%es and concerns
&
Data 20omC % =andboo4 on 8T<' 9it Special re)erence to ,a4istanG KCCI
9 9 '3
NImp1ementationO is s7o0t97and 2o0 de:e1oping co8nt0iesA p0o51ems in imp1ementing t7e c800ent WTO Ag0eementsG i e t7e ag0eements a0ising 20om t7e !08g8a6 Ro8nd negotiations No a0ea o2 WTO Jo0k 0ecei:ed mo0e attention o0 gene0ated mo0e cont0o:e0s6 d80ing nea016 t70ee 6ea0s o2 7a0d 5a0gaining 5e2o0e t7e Do7a Ministe0ia1 Con2e0ence A0o8nd 1$$ iss8es Je0e 0aised d80ing t7at pe0iod T7e 0es81t Jas a tJo9p0onged app0oac7C T Mo0e t7an &$ items 8nde0 1' 7eadings Je0e sett1ed at o0 5e2o0e t7e Do7a con2e0enceG 2o0 immediate de1i:e06 T T7e :ast maKo0it6 o2 t7e 0emaining items immediate16 5ecame t7e s85Kect o2 negotiations T7is Jas spe1t o8t in a sepa0ate ministe0ia1 decision on imp1ementationG com5ined Jit7 pa0ag0ap7 1' o2 t7e main Do7a Dec1a0ation T7e imp1ementation decision inc18des t7e 2o11oJing
1.10.I., G/*/+,: A.+//)/*' (* T,+-99& ,*1 T+,1/ <GATT=

T
;a1ance9o29pa6ments eDceptionC c1a0i26ing 1ess st0ingent conditions in GATT 2o0 de:e1oping co8nt0ies i2 t7e6 0est0ict impo0ts in o0de0 to p0otect t7ei0 5a1ance9o29pa6ments Ma0ket9access commitmentsC c1a0i26ing e1igi5i1it6 to negotiate o0 5e cons81ted on <8ota a11ocation
1.10.I.6 S,*-',+0 ,*1 850'(&,*-',+0 <SPS= )/,&7+/&

T
T T
T T T
Mo0e time 2o0 de:e1oping co8nt0ies to comp16 Jit7 ot7e0 co8nt0iesA neJ SPS meas80es NReasona51e inte0:a1O 5etJeen p851ication o2 a co8nt06As neJ SPS meas80e and its ent06 into 2o0ce E<8i:a1enceC p8tting into p0actice t7e p0incip1e t7at go:e0nments s7o81d accept t7at di22e0ent meas80es 8sed 56 ot7e0 go:e0nments can 5e e<8i:a1ent to t7ei0 oJn meas80es 2o0 p0o:iding t7e same 1e:e1 o2 7ea1t7 p0otection 2o0 2oodG anima1s and p1ants Re:ieJ o2 t7e SPS Ag0eement De:e1oping co8nt0iesA pa0ticipation in setting inte0nationa1 SPS standa0ds "inancia1 and tec7nica1 assistance
1.10.I.2 T/25*-2,: 6,++-/+& '( '+,1/

T
Tec7nica1 assistance 2o0 1east9de:e1oped co8nt0iesG and 0e:ieJs o2 tec7nica1 assistance in gene0a1 W7en possi51eG a siD9mont7 N0easona51e inte0:a1O 2o0 de:e1oping co8nt0ies to adapt to neJ meas80es
9 9 '&
T7e WTO di0ecto09gene0a1 enco80aged to contin8e e22o0ts to 7e1p de:e1oping co8nt0ies pa0ticipate in setting inte0nationa1 standa0ds
1.10.I.1 T+,1/!+/:,'/1 -*3/&')/*' )/,&7+/& <TRIM&=

T
T7e Goods Co8nci1 is Nto conside0 positi:e16O 0e<8ests 20om 1east9de:e1oped co8nt0ies to eDtend t7e se:en96ea0 t0ansition pe0iod 2o0 e1iminating meas80es t7at a0e inconsistent Jit7 t7e ag0eement
1.10.I./ A*'-!17)8-*. <GATT A+'-2:/ 6=

T
T T
No second anti9d8mping in:estigation Jit7in a 6ea0 8n1ess ci0c8mstances 7a:e c7anged #oJ to p8t into ope0ation a specia1 p0o:ision 2o0 de:e1oping co8nt0ies 3A0tic1e 1) o2 t7e Anti9D8mping Ag0eement4G J7ic7 0ecogni=es t7at de:e1oped co8nt0ies m8st gi:e Nspecia1 0ega0dO to t7e sit8ation o2 de:e1oping co8nt0ies J7en conside0ing app16ing anti9d8mping meas80es C1a0i2ication so8g7t on t7e time pe0iod 2o0 dete0mining J7et7e0 t7e :o18me o2 d8mped impo0ted p0od8cts is neg1igi51eG and t7e0e2o0e no anti9d8mping action s7o81d 5e taken Ann8a1 0e:ieJs o2 t7e ag0eementAs imp1ementation to 5e imp0o:ed
1.10.I.9 S76&-1-/& ,*1 2(7*'/+3,-:-*. )/,&7+/&

T
T T T T
So0ting o8t 7oJ to dete0mine J7et7e0 some de:e1oping co8nt0ies meet t7e test o2 5eing 5e1oJ !SS1G$$$ pe0 capita GNP a11oJing t7em to pa6 s85sidies t7at 0e<8i0e t7e 0ecipient to eDpo0t Noting p0oposed neJ 081es a11oJing de:e1oping co8nt0ies to s85sidi=e 8nde0 p0og0ammes t7at 7a:e N1egitimate de:e1opment goa1sO Jit7o8t 7a:ing to 2ace co8nte0:ai1ing o0 ot7e0 action Re:ieJ o2 p0o:isions on co8nte0:ai1ing d8t6 in:estigations Rea22i0ming t7at 1east9de:e1oped co8nt0ies a0e eDempt 20om t7e 5an on eDpo0t s85sidies Di0ecting t7e S85sidies Committee to eDtend t7e t0ansition pe0iod 2o0 ce0tain de:e1oping co8nt0ies
1.10.I.. T+,1/!+/:,'/1 ,&8/2'& (9 -*'/::/2'7,: 8+(8/+'0 +-.5'& <TRIPS=

T
NNon9:io1ationO comp1aintsC t7e 8n0eso1:ed <8estion o2 7oJ to dea1 Jit7 possi51e TRIPS disp8tes in:o1:ing 1oss o2 an eDpected 5ene2it e:en i2 t7e TRIPS Ag0eement 7as not act8a116 5een :io1ated Tec7no1og6 t0ans2e0 to 1east9de:e1oped co8nt0ies
1.10.I.5 F-*,: 8+(3-&-(*&

T
T7e WTO Di0ecto09Gene0a1 is to ens80e t7at WTO tec7nica1 assistance gi:es p0io0it6 to 7e1ping de:e1oping co8nt0ies imp1ement eDisting WTO
9 9 ')
o51igationsG and to inc0ease t7ei0 capacit6 to pa0ticipate mo0e e22ecti:e16 in 28t80e negotiations T7e WTO Sec0eta0iat is to coope0ate mo0e c1ose16 Jit7 ot7e0 inte0nationa1 o0gani=ations so t7at tec7nica1 assistance is mo0e e22icient and e22ecti:e
T7e imp1ementation decision is tied into t7e main Do7a Dec1a0ationG J7e0e ministe0s ag0eed on a 28t80e Jo0k p0og0amme to dea1 Jit7 8nsett1ed imp1ementation <8estions FNe!otiations on outstandin! implementation issues s all be an inte!ral part o) t e 8or4 ,ro!rammeG in t7e coming 6ea0sG t7e6 dec1a0ed In t7e dec1a0ationG t7e ministe0s esta51is7ed a tJo9t0ack app0oac7 T7ose iss8es 2o0 J7ic7 t7e0e Jas an ag0eed negotiating mandate in t7e dec1a0ation Jo81d 5e dea1t Jit7 8nde0 t7e te0ms o2 t7at mandate T7ose imp1ementation iss8es J7e0e t7e0e is no mandate to negotiateG Jo81d 5e t7e taken 8p as Na matte0 o2 p0io0it6O 56 0e1e:ant WTO co8nci1s and committees T7ese 5odies Je0e to 0epo0t on t7ei0 p0og0ess to t7e T0ade Negotiations Committee 56 t7e end o2 '$$' 2o0 Napp0op0iate actionO
9 9 ',
+ C"a'ter *wo ( Ind%strial Sector !1 Tariff Structure in Pa/istan

Pakistan 7as taken 0ema0ka51e st0ides in 0ecent *ari## Rates &--4(+,,1 6ea0s to st0eam1ine its ta0i22 sc7ed81e and 0ed8ce 5a00ie0s 60 to inte0nationa1 t0ade In t7e 50 past decadeG t7e simp1e 40 a:e0age ta0i22 0ate dec1ined 30 20om )1 pe0cent in 1--) to a0o8nd 1* pe0cent in '$$&) 20 W7en meas80ed in te0ms o2 10 impo0t ta0i22sA e22ect on 0 domestic p0icesG 5ot7 simp1e 1995 1998 2001 2002 2003 2004 and Jeig7ted a:e0age ta0i22 0ates 2e11 56 '' pe0cent Median Simp e A!era"e 5etJeen 1--) and '$$3 T7is dec1ine is 1a0ge 56 0ecent 7isto0ica1 standa0dsC 56 Ja6 o2 compa0isonG 7ig7 income co8nt0ies 0ed8ced ta0i22 56 3 ' pe0cent d80ing t7e !08g8a6 Ro8ndG a11 1oJ9income co8nt0ies 56 + 1 pe0centG and ot7e0 So8t7 Asian GATT mem5e0s 3i e G India and S0i .anka4 56 1, ) pe0cent, T7e 5iggest dec1ine came 5etJeen 1--+ and '$$1G 58t t7e 0ema0ka51e t7ing is t7e s8stained moment8m o2 ta0i22 1i5e0a1i=ation d80ing t7is pe0iod At t7e 0egiona1 1e:e1G PakistanAs a:e0age ta0i22 noJ app0oac7es Nepa1As and S0i .ankaAs9 t7e 1oJ ta0i22 1eade0s in t7e Average *ari## Rates 0egion At t7e g1o5a1 1e:e1 7oJe:e0G Pakistan contin8es 35#0 to 0ank someJ7at 1oJC 1$30#0 o8t o2 1&1 in te0ms o2 t7e 25#0 20#0 a:e0age ta0i22 0ate ac0oss a11 15#0 goods It 0anks someJ7at 10#0 5#0 5ette0 in ag0ic81t80a1 0#0 p0od8cts on16C *1 o8t o2 1&1*
In =
pt an es sia nd &r a' hi n sh ip in *" + ia ist %n e Pa ) Ph i $n d Th a
<ercentage Rates
Wit7 a 2eJ eDception i e a8tomo5i1esG edi51e oi1 and A!era"e Tari,, a1co7o1ic 5e:e0agesG t7e ta0i22 0ates a0e g0o8ped into a n8m5e0 o2 Ta0i22 5ands o0 s1a5s D80ing t7e co80se o2 t7e ta0i22 1i5e0a1i=ation p0og0amG
) ,
Ta0i22 Rationa1i=ation St8d6G W; @ Mic7ae1 "inge0G Me01inda D Ingco and !10ic7 ReinckeG T e ?ru!uay *ound7 Statistics on Tari)) &oncessions Aiven and *eceived 3Was7ingtonC T7e Wo01d ;ankG 1--,4 * Ta0i22 Rationa1i=ation St8d6G W;
&a n"
ad e
$n d
ia
9 '* 9
t7e go:e0nment 7as 0ed8ced t7e n8m5e0 o2 ta0i22 5ands T7e 1atest ta0i22 sc7ed81e contains 2o80 5ands at ta0i22 0ates o2 )G 1$G '$ and ') pe0cent T7is 0ep0esents <8ite a c7ange 20om t7e 1--) ta0i22 sc7ed81eG J7ic7 contained ta0i22 5ands 2o0 no0ma1 goods at 1) di22e0ent 1e:e1s 5etJeen =e0o and +$ pe0cent
!!
0rief Re1ie2 of Industria, Sector of Pa/istan

<akistan>s E$'orts -,(-& = s"are
I2 Je 1ook at t7e Ind8st0ia1 p0od8ction o2 PakistanG Je Ji11 see t7at t7e s7a0e o2 man82act80ing secto0 in t7e GDP o2 Pakistan 7as 5een stagnant 2o0 t7e past a0o8nd 3) 6ea0s at a0o8nd 1* pe0cent in 0ea1 te0ms In t7e 6ea0 '$$39$& it Jas 1* ) pe0cent Jit7 1a0ge sca1e man82act80ing cont0i58ting 11 + pe0cent and sma11 sca1e cont0i58ting & 3 pe0cent 0especti:e16+
16266619-
(%tt%n .eather /ice S+nthetic Te0ti es Sp%rts G%%ds Others
Fi!ure 1
Simi1a016 t7e s7a0e o2 ind8st0ia1 secto0 in t7e eDpo0ts o2 Pakistan 7as 5een stagnant at a0o8nd '+ pe0cent 20om -$9-1 to $39$& 3"ig80e 1 and '4 T7e main 0easons 2o0 t7e eDpo0ts o2 Ind8st0ia1 secto0 5eing stagnant a0eC .oJ <8a1it6 p0od8ctsG <akistan>s E$'orts ,/(,1 = S"are 0e1iance on 2eJ eDpo0ts p0od8ctsG 2eJ eDpo0t ma0kets and t7e ina5i1it6 o2 Pakistani eDpo0te0 to keep 20(%tt%n Jit7 t7e times Jit7 t7e .eather ind8ction o2 neJ tec7no1og6 3and 0ed8cing t7e cost o2 /ice 4p0od8ction S+nthetic Te0ti es T7e maKo0 cont0i58to0s to 5t7e eDpo0t secto0G in t7e ind8st0ia1 secto0G eDc18ding teDti1es and 0e1ated p0od8ctsG a0e 1eat7e0 p0od8ctsG Spo0ts goodsG s80gica1 e<8ipment and ca0pets and 08gs 3ED7i5it I4
563Sp%rts G%%ds Others
Fi!ure 2
Economic S80:e6 '$$39$&
9 '+ 9
As 0ega0ds t7e Impo0ts o2 goods is conce0nedG t7e maKo0 p0od8cts a0e mac7ine06G t0anspo0t e<8ipmentG c7emica1sG pet0o1e8m p0od8ctsG edi51e oi1 and 2e0ti1i=e0 3ED7i5it III4 I2 Je 1ook at t7e impo0ts o2 PakistanG Je 2ind t7at most o2 t7e impo0ts a0e 0aJ mate0ia1 2o0 280t7e0 p0od8ction and 7ence t7e demand 2o0 t7ese is ine1astic .ooking at t7e t0ends in t7e composition o2 Impo0ts 20om t7e pe0iod -$9-1 to $39$&G Je see t7at t7e composition o2 Impo0ts 7as 5een mo0e o0 1ess constant 3"ig80es 5e1oJ4
<akistan>s I 'orts -,(-& = S"are
Machiner+ 2 2 2321Petr% e3m 4 Pr%d3cts (hemica s 5 Transp%rt *63ipments 243511322*di7 e Oi $r%n 4 Stee 8erti i'er Tea Others
<akistan>s I 'orts ,/(,1 = S"are

Machiner+ 2 2 1828Petr% e3m 4 Pr%d3cts (hemica s 5 Transp%rt *63ipments *di7 e Oi 1235620$r%n 4 Stee 8erti i'er 11Tea Others
!3
Imp,ications of #TO on Industria, Sector

T7e 2o11oJing section Jo81d ana16se t7e possi51e oppo0t8nities and t70eats to t7e maKo0 eDpo0ts 3eDc18ding teDti1es and 0e1ated p0od8cts4 and impo0ts 8nde0 t7e WTO 0egime
+5/5I
E$'orts
In t7e eDpo0ts secto0G t7e ana16sis o2 2o80 maKo0 p0od8cts Jo81d 5e ca00ied o8t i e 1eat7e0 p0od8ctsG spo0ts goodsG s80gica1 e<8ipment and Ca0pets and R8gs
9 '- 9
.$.I.,
L/,'5/+ P+(172'&
T7e s7a0e o2 1eat7e0 p0od8cts in t7e eDpo0ts o2 Pakistan 7as 5een dec1ining o:e0 t7e pe0iod 1--$9-1 to '$$39$& 20om - 1 pe0cent in -$9-1 to ) 3 pe0cent in $39$& #oJe:e0 in 08pee te0ms t7e eDpo0ts 7a:e 0isen 3ED7i5it /4 As 2a0 as t7e imp1ications o2 WTO a0e conce0nedG t7e T;T and SPS can 7a:e signi2icant impact on PakistanAs a5i1it6 to inc0ease t7e eDpo0ts in t7is secto0 Pa0tic81a016 t7e en:i0onmenta1 iss8es 0e1ated Jit7 t7e 1eat7e0 ind8st06 in Pakistan co81d 7a:e signi2icant negati:e e22ects on o80 eDpo0ts Anot7e0 p0o51em co81d 5e 0e1ated to t7e <8a1it6 o2 o80 1eat7e0 eDpo0ts I2 t7e Pakistani eDpo0te0 does not imp0o:e t7e <8a1it6 o2 t7e p0od8ctG t7e c800ent competiti:e ad:antage t7at Pakistan 7as in t7is 2ie1d co81d <8ick16 2ade aJa6
.$.I.6 S8(+'& G((1&

T7e s7a0e o2 spo0ts goods in t7e eDpo0t p0oceeds 7as 5een mo0e o0 1ess constant in t7e pe0iod 8nde0 0e:ieJ T7o8g7 again in 08pee te0ms t7e eDpo0ts 7a:e 0isen 3ED7i5it /I4 Mo0e o0 1ess Pakistan 2aces t7e same c7a11enges in t7e eDpo0t o2 spo0ts goods as it does in t7e eDpo0t o2 1eat7e0 p0od8cts "ai180e to keep 8p Jit7 t7e tec7no1ogica1 ad:ances 7as a10ead6 c0eated a 5ig dent in t7e eDpo0t o2 2oot5a11s and i2 t7e eDpo0te0 o2 spo0ts goods does not app0eciate t7e need o2 tec7no1ogica1 ad:ancementG t7e s7a0e is ce0tain to 2a11 280t7e0
.$.I.2
S7+.-2,: E>7-8)/*'
In t7e case o2 s80gica1 inst08ments a1so t7e s7a0e in t7e eDpo0ts 7as 5een constant at a0o8nd 1 3 pe0cent Jit7 a mode0ate c7ange in 08pee te0ms 3ED7i5it /II4
.$.I.1 C,+8/'& ,*1 R7.&

T7e s7a0e o2 ca0pets and 08gs in tota1 eDpo0ts 7as 5een a0o8nd ' pe0cent Jit7 a 0ise to 3 1, pe0cent in '$$$9$1 J7i1e in 08pee te0ms t7e eDpo0t p0oceeds 7a:e s7oJn an inc0ease ti11 '$$$9$1 and t7en t7e0e 7as 5een a dec0ease e:en in 08pee te0ms 3ED7i5it /III4 In t7e o:e0a11 case o2 eDpo0t ind8st06 o2 Pakistan some pec81ia0ities can 5e identi2ied 56 1ooking at t7e eDpo0ts o2 o80 maKo0 p0od8ctsC a4 Pakistan is eDpo0ting main16 :e06 t0aditiona1 p0od8cts J7ic7 cannot 2etc7 good p0ice in inte0nationa1 ma0ket 54 T7e s7a0e o2 Non9TeDti1e p0od8cts in t7e eDpo0t is stagnant o:e0 t7e 1ast tJo decades o0 so c4 WTO 7as 5een in ope0ation since @an8a06 1--) and Pakistan 5eing a 2o8nding mem5e0 is its 081es since t7enG 58t t7e0e 7a:e 5een no d0astic c7anges in its eDpo0t p0o2i1e o:e0 t7at pe0iod "0om t7e a5o:e it can 5e c1ea016 seen t7at t7e p0o51em Jit7 t7e ind8st0ia1 eDpo0ts o2 Pakistan 7a:e not7ing to do Jit7 WTOG 58t it is t7e s8pp16 side - const0aints t7at a0e 7ampe0ing t7e eDpo0ts o2 o80 co8nt06 W7i1e it is t08e t7at T;T and SPS mig7t 7a:e some
-
T e ability and t e e0pertise o) ,a4istan to be able to produce and supply Huality products.
9 3$ 9
ad:e0se e22ects on t7e a10ead6 sma11 non teDti1e eDpo0ts o2 PakistanG 58t t7at again is a s8pp16 side p0o51em t7at co81d 5e o:e0come Jit7 p0ope0 p1anning
+5/5II
I 'orts
In t7e impo0ts secto0 t7e ana16sis Jo81d 5e ca00ied o8t 2o0 maKo0 impo0ts J7ic7 a0e c7emica1sG :egeta51e oi1G mac7ine06G e1ect0ica1 goodsG 2e0ti1i=e0G t0anspo0t e<8ipment and pet0o1e8m p0od8cts T7e 8ni<8e 2eat80e a5o8t t7e impo0ts o2 Pakistan is t7at a11 t7e maKo0 impo0ts into Pakistan a0e 8sed as inp8ts into ot7e0 ind8st0ia1 o0 ag0ic81t80a1 acti:ities and 7ence t7ei0 demand is ine1astic 1$ T7is 2act makes Pakistan :e06 :81ne0a51e to t7e inte0nationa1 p0ices and s8pp16 conditions "80t7e0mo0e t7is ine1asticit6 7as eDte0na1ities on t7e inte0na1 econom6 o2 t7e co8nt06
.$.II., C5/)-2,:&
T7e s7a0e o2 c7emica1s in t7e tota1 impo0ts o2 Pakistan is a0o8nd 1$91'L T7e a:e0age ta0i22 0ate is )L on c7emica1s and its p0od8cts T7e impo0ts o2 c7emica1s 7a:e g0oJn in Rs te0m as Je11 o:e0 t7e pe0iod in st8d63ED7i5it I> 4 As 2a0 as WTO and its impact on c7emica1 ind8st06 is conce0nedG no ad:e0se a22ects a0e eDpected main16 5eca8se o2 tJo 0easonsC i T7e ta0i22 is a10ead6 :e06 1oJ ii T7e 5o8nd ta0i22s a0e m8c7 7ig7e0 t7an app1ied ta0i22 0ates T7is 7o1ds t08e 2o0 p0actica116 a11 t7e impo0ts into PakistanG 5a00ing a8tomo5i1es and its pa0ts
.$.II.6 V/./',6:/ (-:

T7e s7a0e o2 :egeta51e oi1 in t7e impo0t 5i11 is constant a0o8nd )9,L Jit7 some peaks in 5etJeen T7e tota1 impo0t 5i11 on t7is 7ead 7as a1most do851ed in t7e pe0iod -39-& to $39 $& 3ED7i5it >4 No negati:e a22ect o2 an6 kind is eDpected in t7e e0a o2 WTO in t7is secto0 as Je11 5eca8se t7e ta0i22 0ates in t7is ind8st06 a0e a10ead6 =e0o
.$.II.2 F/+'-:-?/+
T7e s7a0e o2 2e0ti1i=e0 in t7e tota1 impo0ts 7as dec1ined 20om 3 1$ L in -39-& to a0o8nd 'L in $39$&G a1t7o8g7 in 08pee te0ms t7e impo0t 5i11 7as inc0eased 3ED7i5it >I4 In case o2 2e0ti1i=e0 as Je11 t7e t0ade 7as 5een 1i5e0a1i=ed to a g0eat eDtent and t7e ta0i22 0ate is )L T7e 1oca1 ind8st06 7as a10ead6 adK8sted to 2o0eign competition and no g0a:e t70eat is anticipated Jit7 280t7e0 1i5e0a1i=ation
.$.II.1 M,25-*/+0 E:/2'+-2,: ,*1 N(* E:/2'+-2,:

T7e s7a0es o2 5ot7 e1ect0ica1 and non e1ect0ica1 mac7ine06 7a:e dec1ined in t7e past ten 6ea0s t7o8g7 in 08pee te0ms t7e impo0t 5i11 7as inc0eased 3ED7i5its >II and >III 4 T7e ta0i22 0ates 2o0 mac7ine06 0ange 5etJeen )L and ')L T7e dec0easing s7a0e in impo0ts and someJ7at 7ig7e0 ta0i22 0ates indicate t7at t7e go:e0nment is p80s8ing an impo0t s85stit8tion po1ic6 in t7ese secto0s A1t7o8g7 t7ese secto0s a0e enKo6ing someJ7at 7ig7e0 p0otection 58t no 0ea1 t70eat is pe0cei:ed in t7ese secto0s Jit7 g0eate0 g1o5a1i=ation
1$
Ine1astic demand is t7at J7ic7 is not a22ected to a 1a0ge eDtent Jit7 c7anges in P0ice
9 31 9
5eca8se t7e 5o8nd 0ates committed 56 Pakistan a0e 7ig7e0 t7an t7e 0ates 5eing app1ied at t7e moment
.$.II./ P/'+(:/7) P+(172'&

In 0ecent 6ea0s pet0o1e8m p0od8cts 2o0m t7e maKo0 s7a0e o2 impo0ts and stand a0o8nd ')L in $39$& ED7i5it >I/ s7oJs t7e tota1 impo0ts o2 pet0o1e8m p0od8cts 20om t7e pe0iod -39-& to $39$& Ta0i22 0ates on 28e1s a0e )L J7i1e on 1850icants and ot7e0 0e1ated p0od8cts it 0anges 5etJeen '$L9')L
.$.II.9 T+,*&8(+' E>7-8)/*'

T0anspo0t ind8st06 is one pa0tic81a0 ind8st06 t7at t7e Go:e0nment o2 Pakistan is t06ing to esta51is7 8nde0 p0otection o2 ta0i22s T7e ta0i22 0ates 2o0 t0anspo0t e<8ipment sta0t 20om 3)L and go as 7ig7 as '$$L 2o0 some :e7ic1es T7e s7a0e in impo0ts 7as gone doJn 58t t7e a5so18te :a18e o2 impo0ts 7as s7oJn an inc0ease 3ED7i5it >/4
So80ceC PAPAM
T7e Ve"icle *!'e C?D C;@ S5* go:e0nment Cars 3pt% 1000 cc 3510015o2 Pakistan 100191300 cc 3512015esta51is7ed 130191800 cc 3515015t7e de1etion 180192999 cc 3525015p0og0amme LCV 306015in t7e *r%cks 306015ind8st06 in ;%ses 15601503515o0de0 to a:oid *ractors Motorc!cles 30105157ea:6 impo0ts in t7e a8tomo5i1e secto0 on t7e one 7and and on t7e ot7e0G to p0omote 1oca1 :endo0 ind8st06 P8s7ed 56 t7e de1etion po1icies o2 t7e Go:e0nmentG t7e 1oca1i=ed content o2 :a0io8s 8nits kept on inc0easing eac7 6ea0 8n9ti11 1-+) J7en ce0tain 8n2a:o0a51e decisions a22ected ind8st0ia1i=ation and t7e 1oca1i=ation de1etion came to standsti11 d80ing t7e neDt *9+ 6ea0s #ad t7e o0igina1 de1etion p0og0amme 5een 2o11oJedG Pakistan co81d 5ecome se12 s822icient in p0od8cing a Pakistani Ca0 56 t7e 6ea0 1-++ !nde0 t7e TRIMs ag0eement Pakistan co81d not contin8e t7e de1etion p0og0amme a2te0 @an8a06 $1G '$$$ ;8t Pakistan 0e<8ested 2o0 an eDtension and got and eDtension o2 tJo 6ea0s C800ent16G Pakistan is sti11 contin8ing Jit7 t7e de1etion p0og0amme and its app1ication 2o0 a 280t7e0 eDtension is pending Jit7 WTO I2 Pakistan is not g8a0anteed 280t7e0 eDtension t7en t7e 1oca1 :endo0 and a8tomo5i1e Jo81d 5e 8na51e to compete Jit7 t7e inte0nationa1 ma0ket In t7is case t7e0e is a 0ea1 t70eat o2 de9ind8st0ia1i=ation in t7is secto0
!%
Conc,usion and Recommendations
WTO is a 0ea1it6 and it is 7e0e and 7e0e to sta6 Pakistan is a signato06 to t7e WTO and cannot keep its e6es s78t to t7e 0ea1ities W7at Pakistan needs to do is to make t7e 5est o2 a gi:en sit8ation and t06 and de:e1op a st0ateg6 to get maDim8m 5ene2it 20om g1o5a1i=ation and WTO
9 3' 9
T7e 1oca1 ind8st06 noJ cannot 5e p0otected Jit7 t7e 8se o2 <8otas o0 :e06 7ig7 ta0i22s T7e go:e0nment needs to 58i1d a :e06 st0ong netJo0k o2 Anti9d8mping and co8nte0:ai1ing d8ties to p0otect t7e 1oca1 ind8st06 against t7e ons1a8g7t o2 8n2ai0 2o0eign competition T7e de:e1oping co8nt0ies inc18ding Pakistan 2ace p0o51ems in 7i0ing 1aJ 2i0ms to ad:ice on WTO 0e1ated iss8esG J7ic7 is a const0aining 2acto0 in seeking 0e1ie2 20om Disp8te Sett1ement ;od6 3DS!4 T7is 8nde0sco0es t7e need to t0ain 1oca1 1aJ6e0s Jit7 WTO eDpe0tise O80 s80:i:a1 1ies in en7ancing c0edi5i1it6 t70o8g7 adoption o2 inte0nationa1 <8a1it6 standa0dsG 58t Pakistan 7as a 1ong Ja6 to go in o5taining ce0ti2ication o2 ISOAs and ot7e0 standa0ds A p0ope0 po1ic6 is 0e<8i0ed in t7is di0ection J7ic7 s7o81d in:o1:e 5ot7 p851ic and p0i:ate <8a0te0s to add0ess t7is iss8e Specia1 po1icies a0e needed 2o0 secto0s J7ic7 a0e Jo0king 8nde0 de1etion p0og0amme s8c7 as a8tomo5i1es and enginee0ing goods so t7at t7e6 co81d 5ecome e22icient in s7o0test possi51e time Detai1ed st8dies s7o81d 5e 8nde0taken to asce0tain t7e impact on t0ade o2 Pakistan o D8e to accession o2 C7ina to WTO o D8e to en1a0gement o2 E! o D8e to 5i1ate0a1 ag0eements in J7ic7 co8nt0ies o2 o80 inte0est a0e a1so in:o1:ed
9 33 9
/ C"a'ter *"ree( *e$tile and Clot"ing Sector 31 #or,d Te3ti,e and C,othin& 4T5C6 Trade
Wo01dAs t0ade in T?C g0eJ 20om S, 5i11ion in 1-,' to S3&' 5i11ion in '$$1 "ig80e 1 s7oJs a s85stantia1 inc0ease in t7e g1o5a1 2ig80es o2 T?C o:e0 t7e 6ea0s11 T0ade in T?C g0eJ 2aste0 t7an tota1 Jo01d t0ade in t7e pe0iod p0io0 to 1-*& G its s7a0e in Jo01d t0ade 1e:e1ing o22 ti11 1-+) 5e2o0e inc0easing again 8nti1 1--& ;etJeen 1--& and 1--+ t7e s7a0e o2 T?C in Jo01d t0ade dec1ined g0ad8a116 G K8mping 8p s1ig7t16 in 1--5e2o0e again in t7e 0ecent 6ea0s It is 5eca8se o2 t7e a5o:e mentioned 2act t7at t7e s7a0e o2 T?C in t7e tota1 me0c7andise t0ade 2e11 In t7e 6ea0 '$$& g1o5a1 t0ade in T?C is S3)3 5i11ionG J7ic7 acco8nts 2o0 nea016 , pe0cent o2 t7e tota1 me0c7andise t0ade Itse12 T?C seems a "A..ING STAR in g1o5a1 t0ade as compa0ed to ot7e0 secto0s as enginee0ing secto0 6etG o2 t7is tota1 o2 S3)3 5i11ionG t7e s7a0e o2 teDti1e is S1)' 5i11ionG J7i1e t7at o2 c1ot7ing is S '$1 5i11ion
Alobal *rade in *BC +,,18;illion C9
Te0ti e: 152 Te0ti e ( %thin" ( %thin": 201
Alobal *rade in *BC = s"are
43 Te0ti e ( %thin" 51
11
!NDPAs Repo0t NImpact o2 post9ATC En:i0onment on PakistanAs TeDti1e T0adeO No:em5e0 '$$3
9 3& 9
S(7+2/ 4 UNDP
T7e a5o:e c7a0ts s7oJ t7at t7e t0ade Jit7 in c78nk o2 T?C nea016 ,$L amo8nted to c1ot7ing secto0 So t7e 28t80e potentia1 ma0ket is t7at o2 C1ot7ing
T?C is inc1ined toJa0ds c1ot7ing as 5igge0

%ea0 1-)' 1-,$ 1-*$ 1-+$ 1--$ Cotton *3L &3L )) , &+ * &* * Woo1 1$ 3 &3 ' , -1 ) )& 3 *& MM" 1, ,13 ,' 3* )1 &) *-3 &+ )& Tota1 1$$L 1$$L 1$$L 1$$L 1$$L
Additiona116G Man9made 2i50es 7a:e p0og0essi:e16 inc0eased in s7a0e o2 a11 2i50es g1o5a116 T7e L 0ise in t7e s7a0e o2 S6nt7etics since 2i2ties is gi:en in Ta51e1 Ta51e1 S(7+2/4 C(''(* W(+:1 S','-&'-2&, ICAC O2' 0 T7e s7a0e o2 man9made 2i50es in tota1 2i50e cons8mption in t7e Jo01d inc0eased 20om &-L to )+L in 1--+
= s"are o# 6ibre Cons% 'tion &--, S"are o# 6ibre cons% 'tion (&--0
Man9Made 8i7res W%% (%tt%n
(%tt%n 48-
Man9Made 8i7res 49-
(%tt%n: 39: 39-
Man9Made 8i7res W%% (%tt%n

Man9Made 8i7res: 58: 58W%% : 3: 3-
W%% 3-
"ig 3
S(7+2/4 T/;'-:/ V-&-(* 00%
T70o8g7o8t t7e Jo01d t7e nat80e o2 teDti1e and c1ot7ing secto0 is 1a5o0 intensi:eG and 0e<8i0es 0e1ati:e16 1itt1e ski11s and capita1 in:estment T7e T?C ind8st06 is o2 immense
9 3) 9
impo0tance to Pakistan and ot7e0 de:e1oping co8nt0ies o2 t7e 0egion as it p0o:ides an a1te0nati:e to ad:ance ea016 stages o2 ind8st0ia1i=ation Jit7 7ig7 potentia1 o2 emp1o6ment gene0ation and eDpo0t eDpansion It 7as t0aditiona116 5een t7e stepping9stone toJa0ds ind8st0ia1i=ation It 7as e:ent8a116 5ecome a Ns8nsetO ind8st06 in t7ose co8nt0ies J7ic7 7a:e 0eac7ed a 7ig7e0 1e:e1 o2 income T7e secto0 not on16 2o0ms a signi2icant s7a0e o2 GDP and 2o0eign eDc7ange ea0ningsG 58t it a1so cont0i58tes to 78man de:e1opment o5Kecti:es s8c7 as32ema1e4 emp1o6ment G di228sion o2 knoJ1edge and tec7no1og6 and gene0ation o2 0e:en8e
3!
T5C Sector out of GATT 1.%+
T?C c1ot7ing Jas :i0t8a116 taken o8t o2 t7e am5it o2 GATT t70o8g7 t7e IS7o0t Te0mA31-,$4 and t7e I.ong Te0mA31-,'9*34 cotton a00angement and t7e s85se<8ent M81ti9 "i50e a00angement 3M"A4 o2 1-*& 1'
FDust seven years a)ter its inceptionE t e ?nited States )ired t e )irst si!ni)icant s ot across A%TT6s nascent bo9. In 1-;;E t e ?S compelled Dapan to FvoluntarilyG restrain its e0ports o) cotton )abrics and clot in!E 9 ic ad risen to levels e0ceedin! t e pre9ar pea4. T e ?S restrictions on Dapanese e0ports 9ere soon )ollo9ed by similar underta4in!s by t e ?IE 9 ic e0tracted voluntary restraints on e0ports )rom =on! Ion! E India and ,a4istan in t e late 1-;0s O C/*'+/ 9(+ T+,1/ P(:-20 &'71-/&, W,&5-*.'(*, O2'(6/+ 00$.
33
The Cotton Arran&ements 41.)171.+36
De:e1oped Co8nt0ies in t7e decade o2 )$s 2aced a t70eat o2 c1os80e o2 p0od8ction 2aci1ities in t7e secto0 1eading to se0io8s socia1 p0o51ems #ence in 1-,$G an ag0eement to a11oJ se1ecti:e sa2eg8a0d action Jas 2o0med J7ic7 Jas a 28ndamenta1 depa0t80e 20om GATT 0egime In 1-,1 a S7o0t Te0m Ag0eement Jas signed J7ic7 Jas 2o11oJed 56 t7e .ong Te0m Cotton A00angement It Jas a ) 6ea0 pact consisting o2 5i1ate0a116 ag0eed <8otas and 8ni1ate0a1 sa2eg8a0ds It Jas 0eneJed in 1-*, and 1-*$
3%
The Mu,tifi8re Arran&ement 41.+%71..%6
M"A 31ike t7e Cotton a00angements4 p0o:ided 081es 2o0 t7e imposition o2 <8otasG eit7e0 t70o8g7 5i1ate0a1 ag0eements o0 8ni1ate0a1 actions It eDtended t7e co:e0age o2 t7e 0est0ictions on teDti1es and c1ot7ing 20om cotton p0od8cts to Joo1 and man9made 2i5e0 p0od8cts !nde0 t7is ag0eement t7e de:e1oped co8nt0ies Je0e 0e<8i0ed to en7ance t7ei0 <8otas at t7e g0oJt7 0ate o2 1L to ,L M"A Jas 8sed a1most eDc18si:e16 56 t7e de:e1oped co8nt0ies to p0otect t7emse1:es against impo0ts 20om de:e1oping co8nt0ies M"A 7ad && mem5e0s J7ic7 Je0e 1ess t7an 7a12 o2 t7e GATT mem5e0s 58t acco8nted 2o0 most mem5e0s Jit7 an inte0est in teDti1es and c1ot7ing t0ade
1'
DAWN Economic? ;8siness Re:ieJ Sep'*9Oct3G'$$&
9 3, 9
;6 1--&G M"A mem5e0s Je0e 2o80 impo0te0s 3T7e !SGE!G Canada and No0Ja64 and some 3$ de:e1oping eDpo0ting co8nt0ies Jit7 a tota1 o2 13$$ T?C 5i1ate0a1 impo0ting <8otas J7ic7 Je0e negotiated 5i1ate0a116 at s7o0t inte0:a1s o2ten e:e06 6ea0 o0 so Additiona116 t7e g0oJt7 0ate o2 ,L in <8otas Jas s7a0p16 0ed8ced in p0actice T7e M81ti2i50e A00angement Jas a maKo0 depa0t80e 20om t7e 5asic GATT 081es and pa0tic81a016 t7e p0incip1e o2 non9disc0imination M"A te0minated on 31st Decem5e0 1--& at t7e end o2 !08g8a6 Ro8nd 8pon t7e ent06 into 2o0ce o2 t7e WTO and its Ag0eement on TeDti1es and C1ot7ing 3ATC4 on 1 @an8a06 1--)
/515I
E##ects o# t"e M6A
T7e ga0ment ind8st06 Jas 21o80is7ed in t7e de:e1oping co8nt0ies 8sing <8ota as an inst08ment 2o0 ma0ket access Additiona116 0e1ocation o2 teDti1e and c1ot7ing ind8st06 took p1ace toJa0ds 1ess 0est0icted o0 8n0est0icted eDpo0te0s 1ike ;ang1ades7 T7is s7i2t in p0od8ction and eDpo0t acti:it6 1ed to mo0e Jide sp0ead 0est0ictions on t7e pa0t o2 de:e1oped co8nt0ies It is 5eca8se t7e mo0e o:e0s8pp16 and t7e mo0e 0est0ictions demanded 56 t7e p0od8ce0s at stake T7is a1so 1ed to t7e ind8st0ia1i=ation in t7e co8nt0ies J7ic7 gained ad:antage 5eca8se o2 t7e <8ota s6stem 8nde0 M"A 0at7e0 t7an 5eca8se o2 t7ei0 compa0ati:e ad:antage in T?C A1so 8nde0 t7e M"AG eDpo0t 0ig7ts 5ecame sca0ce and gene0ated 0ents 2o0 inte0nationa116 competiti:e s8pp1ie0s #ence most o2 t7e 0ents gene0ated 8nde0 t7e M"A acc08ed to de:e1oping co8nt06 eDpo0te0s
!8 at be!an as s ortsi! tedE A%TT'subversive ploy by ric countries to insulate t eir te0tile and apparel industries )rom developin!'country competition actually made matter 9orse )or t e intended bene)iciaries. It encoura!ed 9orld 9ide capacity !ro9t as industries budded in places not yet restricted E 9 ic intensi)ied import competition and price de)lationE 9 ic in turn be!at pro!ressive e0pansion o) t e 9eb o) restriction to address t e !ro9in! problem2.8orld supply did not contract. 8orld prices did not rise. *at er E supply e0panded and prices )ell as more and more unrestricted countries be!an producin! te0tiles and clot in! )or e0port to ric mar4ets22.. Today6s muddled landscape is a direct result o) t e ori!inal sin o) t e 1-;0s.G
C/*'+/ 9(+ T+,1/ P(:-20 &'71-/&, W,&5-*.'(*, O2'(6/+ 00$.
/515II

M6AD55a co 'lete 6ail%re
Did not p0otect Ko5s in de:e1oped co8nt0ies .oss o2 cons8me0 s80p18s in impo0ting co8nt0ies P0od8ce0s 7ad to p80c7ase <8ota 0ig7ts 3co008ption4 P0od8ction decisions 5ased on <8ota 0est0iction not on optima1 economic conside0ations .ed to o:e0s8pp16 and dep0essed Jo01d p0icesC 1oss to p0od8ce0s
9 3* 9
3'
The #TO A&reement on Te3ti,es and C,othin& 4ATC6 1..'7 !99%
T7e ATC is a t0ansitiona1 inst08mentG 58i1t on t7e 2o11oJing ke6 e1ementsC 3a4 t7e p0od8ct co:e0ageG 5asica116 encompassing 6a0nsG 2a50icsG made98p teDti1e p0od8cts and c1ot7ingQ 354 a p0og0amme 2o0 t7e p0og0essi:e integ0ation o2 t7ese teDti1e and c1ot7ing p0od8cts into GATT 1--& 081esQ 3c4 a 1i5e0a1i=ation p0ocess to p0og0essi:e16 en1a0ge eDisting <8otas 38nti1 t7e6 a0e 0emo:ed4 56 inc0easing ann8a1 g0oJt7 0ates at eac7 stageQ 3d4 a specia1 sa2eg8a0d mec7anism to dea1 Jit7 neJ cases o2 se0io8s damage o0 t70eat t7e0eo2 to domestic p0od8ce0s d80ing t7e t0ansition pe0iodQ 3e4 esta51is7ment o2 a TeDti1es Monito0ing ;od6 3NTM;O4 to s8pe0:ise t7e imp1ementation o2 t7e Ag0eement and ens80e t7at t7e 081es a0e 2ait728116 2o11oJedQ and 324 ot7e0 p0o:isionsG inc18ding 081es on ci0c8m:ention o2 t7e <8otasG t7ei0 administ0ationG t0eatment o2 non9M"A 0est0ictionsG and commitments 8nde0taken e1seJ7e0e 8nde0 t7e WTOUs ag0eements and p0oced80es a22ecting t7is secto0 T7e product coverageG 1isted in t7e AnneD to t7e ATCG co:e0s a11 p0od8cts J7ic7 Je0e s85Kect to M"A o0 M"A9t6pe <8otas in at 1east one impo0ting co8nt06 T7e integration process is 1aid doJn in ATC A0tic1e ' and stip81ates 7oJ Mem5e0s s7a11 integ0ate t7e p0od8cts 1isted in t7e AnneD into t7e 081es o2 GATT 1--& o:e0 t7e 1$96ea0 pe0iod T7is p0ocess is to 5e ca00ied o8t p0og0essi:e16 in t70ee stages 33 6ea0sG & 6ea0sG 3 6ea0s4 Jit7 a11 p0od8cts standing integ0ated at t7e end o2 t7e 1$96ea0 pe0iod T7e 2i0st stage 5egan on 1 @an8a06 1--) Jit7 t7e integ0ation 56 Mem5e0s o2 p0od8cts 0ep0esenting not 1ess t7an 1, pe0 cent o2 t7at Mem5e0Us tota1 1--$ impo0ts o2 a11 t7e p0od8cts in t7e AnneD At stage 'G on 1 @an8a06 1--+G not 1ess t7an a 280t7e0 1* pe0 cent Jas integ0ated At stage 3G on 1 @an8a06 '$$'G not 1ess t7an a 280t7e0 1+ pe0 cent Ji11 5e integ0ated "ina116 at t7e endG on 1 @an8a06 '$$)G a11 0emaining p0od8cts 3amo8nting 8p to &- pe0 cent o2 1--$ impo0ts into a Mem5e04 Ji11 stand integ0ated and t7e Ag0eement te0minates Eac7 impo0ting Mem5e0 decides itse12 J7ic7 p0od8cts it Ji11 integ0ate at eac7 stage to 0eac7 t7ese t70es7o1ds T7e on16 const0aint is t7at t7e integ0ation 1ist m8st encompass p0od8cts
MFA
Rest0icted teDti1e T0ade d8e to <8otas
P5,&/!(7' -* " &',./&
WTO
1
B,*7,+0 199%
"ree #orld trade$

N(4 T,+-99 &'-:: ,::(@/1A
20om eac7 o2 t7e 2o80 g0o8pingsC tops and 6a0nsG 2a50icsG made98p teDti1e p0od8cts and c1ot7ing
B,*7,+0 1998
Integ0ation o2 anot7e0 1*L o2 t7e 1--$ Impo0t :o18me
$
B,*7,+0 00
Integ0ation o2 anot7e0 1+L
"
B,*7,+0 00%
Tota1 integ0ation o2 a11 teDti1e and c1ot7ing
9 3+ 9
T7e 2o0me0 M"A <8otasG J7en ca00ied o:e0 into t7e ATC on 1 @an8a06 1--)G 0ep0esented t7e sta0ting point 2o0 an a8tomatic 1i5e0a1i=ation p0ocess set o8t in A0tic1e ' 13G pa0ag0ap7s 1'91, T7e 2o0me0 M"A g0oJt7 0ates app1ica51e to eac7 o2 t7ese <8otas Je0e inc0eased on 1 @an8a06 1--) 56 a 2acto0 o2 1, pe0 cent 2o0 t7e 2i0st stage o2 t7e Ag0eement and t7e neJ g0oJt7 0ate Jas app1ied ann8a116 T7e stage 1 g0oJt7 0ate Jas 280t7e0 inc0eased 56 a 2acto0 o2 ') pe0 cent 2o0 t7e second stage on 1 @an8a06 1--+Q and Ji11 5e inc0eased 56 a 280t7e0 '* pe0 cent 2o0 t7e 1ast stage 5eginning 1 @an8a06 '$$' To i118st0ate t7is p0ocessG a , pe0 cent g0oJt7 0ate 8nde0 t7e M"A in 1--& 5ecame , - pe0 cent 8nde0 t7e ATC and app1ied eac7 6ea0 1--)E-,E-*Q t7en it Jas inc0eased to + * pe0 cent 2o0 eac7 6ea0 1--+E--E'$$$E$1Q and t7en Ji11 5e inc0eased to 11 $) pe0 cent 2o0 '$$'E3E& A0tic1e 3 dea1s Jit7 <8antitati:e 0est0ictions 3o0 meas80es Jit7 simi1a0 e22ect4 ot7e0 t7an t7ose 8nde0 t7e M"A Mem5e0s J7ic7 7ad s8c7 0est0ictions in p1aceG J7ic7 co81d not 5e K8sti2ied 8nde0 a GATT p0o:isionG Je0e 0e<8i0ed eit7e0 to 50ing t7em into con2o0mit6 Jit7 GATT 081es o0 p7ase t7em o8t Jit7in t7e ten 6ea0 t0ansitiona1 pe0iodG acco0ding to a p1an to 5e s85mitted 56 t7e 0est0aining Mem5e0 to t7e TeDti1es Monito0ing ;od6 T7e0e is no o51igation to e1iminate 0est0ictions t7at a0e pe0mitted 8nde0 GATT 081es A ke6 aspect o2 t7e ATC is t7e p0o:ision in A0tic1e , 2o0 a specia1 t0ansitiona1 sa2eg8a0d mec7anism intended to p0otect Mem5e0s against damaging s80ges in impo0ts d80ing t7e t0ansition pe0iod 20om p0od8cts J7ic7 7a:e not 6et 5een integ0ated into GATT and J7ic7 a0e not a10ead6 8nde0 <8ota T7is c1a8se is 5ased on a tJo9tie0ed app0oac7 9 2i0stG t7e impo0ting Mem5e0 m8st dete0mine t7at tota1 impo0ts o2 a speci2ic p0od8ct a0e ca8sing se0io8s damageG o0 act8a1 t70eat t7e0eo2G to its domestic ind8st06 and secondG it m8st t7en decide to J7ic7 indi:id8a1 Mem5e03s4 t7is se0io8s damage can 5e att0i58ted Speci2ic c0ite0ia and p0oced80es a0e set o8t 2o0 eac7 step A0tic1e ) o2 t7e ATC contains 081es and p0oced80es conce0ning ci0c8m:ention o2 t7e <8otas t70o8g7 t0anss7ipmentG 0e90o8tingG 2a1se dec1a0ation o2 o0iginG o0 2a1si2ication o2 o22icia1 doc8ments T7ese 0e<8i0eG inte0 a1iaG cons81tation and 2811 coope0ation in t7e in:estigation o2 s8c7 p0actices 56 Mem5e0s conce0ned W7en s822icient e:idence is a:ai1a51eG possi51e 0eco80se mig7t inc18de t7e denia1 o2 ent06 o2 goods T7e0e is a1so a p0o:ision J7e0e56 a11 Mem5e0s s7o81d esta51is7G consistent Jit7 t7ei0 domestic 1aJs and p0oced80esG t7e necessa06 1ega1 p0o:isions andEo0 administ0ati:e p0oced80es to add0ess and take action against ci0c8m:ention P0o:isions 0e1ating to t7e commitments 8nde0taken in a11 a0eas o2 t7e !08g8a6 Ro8nd as t7e6 0e1ate to teDti1es and c1ot7ing 0e<8i0e t7at a11 Mem5e0s Ns7a11 take s8c7 actions as ma6 5e necessa06O to a5ide 56 t7ese 081es and discip1ines so as to ac7ie:e imp0o:ed ma0ket accessG to ens80e t7e app1ication o2 2ai0 and e<8ita51e t0ading conditions and to a:oid disc0imination against teDti1es and c1ot7ing impo0ts 3A0tic1e *4 T7e TeDti1es Monito0ing ;od6 7as 5een esta51is7ed to s8pe0:ise t7e imp1ementation o2 t7e ATC and to eDamine a11 meas80es taken 8nde0 itG to ens80e t7at t7e6 a0e in con2o0mit6
13
"o0 s8mma06 on ATC p1ease sea AnneD '
9 3- 9
Jit7 t7e 081es It is a <8asi9K8dicia1G standing 5od6 J7ic7 consists o2 a C7ai0man and ten TM; mem5e0sG disc7a0ging t7ei0 28nction on an ad pe0sonam 5asis and taking a11 decisions 56 consens8s T7e ten mem5e0s a0e appointed 56 WTO Mem5e0 go:e0nments acco0ding to an ag0eed g0o8ping o2 WTO Mem5e0s into constit8encies T7e0e can 5e 0otation Jit7in t7e constit8encies T7ese c7a0acte0istics make t7e TM; a 8ni<8e instit8tion Jit7in t7e WTO 20ameJo0k
3)
Critica, Issues in ATC
De:e1oped impo0ting co8nt0ies 7a:e 2812i11ed t7ei0 ATC commitments 56 integ0ating mo0e t7an t7e 0e<8i0ed impo0ts :o18me into GATTP WTO 081es ;8t t7e6 Je0e a51e to do so Jit7o8t dismant1ing most o2 t7e eDisting <8otas and 56 8sing t7e non9<8ota p0od8cts 20om t7e 1ists Ta51e A s7oJs t7at o8t o2 13') o0igina1 <8otasG on16 '1- 7a:e 5een e1iminated in t7e 2i0st se:en 6ea0s o2 integ0ation p0ocess and conse<8ent16 t7e 0emaining 11$, 3app0oDimate16 +3L o2 t7e o0igina1 n8m5e0 in 1--)4 Jo81d 7a:e to 5e 0emo:ed d80ing t7e 0emaining 6ea0s
Ta51e AC N7)6/+ (9 C7(',& E:-)-*,'/1 -* F-+&' T@( S',./& WTO Mem5e0 Tota1 no o2 T?C Stage 1?' Ea016 E1imination (8otas !SA *)* &) 11 E! '1)) $ Canada '-) )& $ No0Ja6 )& 3 )1 So80ceC C(7*2-: (9 T+,1/ -* G((1&, 00 Tota1 E1iminated (8otas ), )) )& )&
A1t7o8g7 t7e 0e<8i0ed pe0centages o2 p0od8cts to 5e integ0ated 7ad gene0a116 5een met G t7e integ0ation p0og0am 7ad 5een const08cted in s8c7 a Ja6 t7at t7e p0od8cts 5eing integ0ated Je0e not p0od8cts t7at Jo81d 5e comme0cia116 meaning281 2o0 poo0 co8nt0iesG e g G ties G tentsG etc De:e1oping co8nt0ies eDpected p0og0essi:e 1i5e0a1i=ation in a11 t7e 2o80 g0o8ps indicated ea01ie0 inc18ding T?C d80ing t7e 1i2e o2 t7e ATC Cont0a06 to t7ei0 eDpectationsG de:e1oped co8nt0ies 7a:e most16 integ0ated 1oJ :a18e9added 6a0nsG 2a50ics and teDti1e made98psG J7ic7 a0e a1so impo0ted 20om de:e1oped co8nt0ies Ta51e ; i118st0ates t7is aspect
Ta51e ;C B,2D!:(,1-*. Pe0centage o2 impo0ts /o18me %a0nsG 2a50ics and Made98ps !SA '- 3& Canada 3' '& E! 31 -1
C1ot7ing 31 3+ ' &*
Tota1 33 '& 33 ,' 3& 3+
/a18e Tota1 1* 3) '- *& '1 ,'
9 &$ 9
/525I
*ari##s <eaks and Escalation
As non9ta0i22 5a00ie0s dec1ine 0e1ati:e16 7ig7 ta0i22 peaks in T?C appea0 "o0 t7e (8ad 3eDcept @apan4 G a:e0age ta0i22s 2o0 T?C p0od8cts a0e conside0a516 7ig7e0 t7an t7e o:e0a11 simp1e a:e0age Wit7 inc0eased competition a 1L ta0i22 di22e0ence can 1oose a 1a0ge o0de0 T7e E! 7as a ta0i22 o2 1' )L J7e0eas in t7e !SA it :a0ies 5etJeen $93$L In t7e !SA C1ot7es and s7oes constit8te , *Lo2 t7e :a18e o2 t7e !S impo0ts 58t acco8nt 2o0 a1most )$L o2 a11 ta0i22 0e:en8e co11ected W7i1e non9ta0i22 5a00ie0s a0e eDpected to 5e p7ased o8t 56 1st @anG'$$)G ta0i22 peaks and esca1ation in t7is secto0 Ji11 most 1ike16 contin8e to 5e 5a00ie0s to ma0ket access
F Some developin! countries are e0pected to )ace 9el)are losses )rom te0tile trade liberali#ation as t e improved access to developed countries mar4ets 9ould in t eir cases not compensate )or t e loss in Huota rents. T ese losses 9ould be more 9ide spread and pronounced E i) t e te0tiles mar4et liberali#ation 9ould consist o) eliminatin! HuotasE but leavin! tari))s unc an!ed.G 11
/525II
Mis%se o# Sa#eg%ards
Man6 de:e1oping co8nt0ies conside0 t7at t7ese sa2eg8a0ds 7a:e 5een 8sed in a 1a0ge n8m5e0 o2 cases and 7ad G in se:e0a1 casesG 5een 2o8nd to 5e 8nK8sti2ied
F In $7J cases developin! countries 9ere tar!ets o) suc measures.G 1;
In t7is 0ega0dG !S go:e0nment p1aced <8ota 0est0ictions on impo0ts o2 com5ed cotton 20om Pakistan in 1--- Pakistan c7a11enged and Jon and in '$$1 t7e !SA 0emo:ed it T7is amo8nts to a mani2estation o2 p0otectionism and 7as a se0io8s impact on t7e imp1ementation p0ocessG disto0ting t0ade 21oJs
/525III A*C
ore restrictiveE
F In t e run'up to implementation o) t e %T& E t e ?S used t e last rene!otiation o) bilateral a!reements to ac ieve reductions in annual !ro9t rates(o) Huotas). T e resultin! deceleration o) Huota !ro9t E combined 9it increases in consumer demandE as made t e %T& more restrictive on remainin! Huotas t an 9ould ave been t e case under t e MF%.G13
3+
:ecision of 1% No1em8er !991 :oha Ministeria, Conference
In Do7a Ministe0ia1 Con2e0enceG ministe0s 0ea22i0m t7ei0 go:e0nmentsA commitment to N2811 and 2ait7281O imp1ementation o2 t7e Ag0eement on TeDti1es and C1ot7ing T7e6 0e2e00ed in pa0tic81a0 to t70ee conce0nsC T7e ag0eementAs p0o:isions on t7e ea016 integ0ation o2 p0od8cts into no0ma1 GATT 081es and t7e e1imination o2 <8otas T7e
1&
EL-6/+,:-?-*. T+,1/ -* T/;'-:/& ,*1 C:('5-*. 4 A &7+3/0 (9 >7,*'-','-3/ &'71-/&,OECD, 00$F
1)
1,
C/*'+/ 9(+ T+,1/ P(:-20 S'71-/&, W,&5-*.'(*, O2'(6/+ 00$. Cent0e 2o0 T0ade Po1ic6 St8diesG Was7ingtonG OctG'$$3
9 &1 9
ministe0s ag0eed t7at t7ese p0o:isions s7o81d 5e Ne22ecti:e16O 8sed Anti9d8mping actions on de:e1oping co8nt0iesA teDti1es and c1ot7ing eDpo0tsG J7en t7ose eDpo0ts Je0e p0e:io8s16 0est0icted 56 <8otas 8nde0 t7e ag0eement T7e ministe0s ag0eed t7at 2o0 tJo 6ea0s a2te0 t7e secto0 is 28116 integ0ated into GATT 081es 3i e '$$)M'$$,4 t7ei0 go:e0nments Ji11 eDe0cise Npa0tic81a0 conside0ationO 5e2o0e initiating anti9d8mping in:estigations on t7ese p0od8cts Dete0mining J7e0e a teDti1es o0 c1ot7ing p0od8ct is madeG an impo0tant iss8e J7enG 2o0 eDamp1eG <8otas app16 to p0od8cts 20om pa0tic81a0 co8nt0ies T7e ministe0s ag0eed to gi:e t7e WTOAs Committee on R81es o2 O0igin a 0o1e in t7is T7ei0 go:e0nments Ji11 noti26 an6 c7anges in t7ei0 081es o2 o0igin 2o0 t7ese p0od8cts to t7e committeeG J7ic7 ma6 decide to eDamine t7e c7anges
3-
Te3ti,e and C,othin& 4T5C6 Sector7 Ma;or Concentration in Pa/istan<s E3ports
T7e st08ct80e o2 PakistanAs econom6 2inds itse12 7ea:i16 dependent on t7e teDti1e and c1ot7ing 3T?C4 secto0 J7ic7 acco8nts 2o0 ,, *L 3inc18ding s6nt7etic teDti1es4 o2 t7e tota1 eDpo0t ea0nings o2 t7e co8nt06 in 6ea0 '$$&1* ED7i5it >>I in t7e appendiD and 2ig & 5e1oJ s7oJ t7at t7e L s7a0e 0anging 5etJeen ,$9,*L o2 t7e tota1 eDpo0ts 7as 5een nea016 constant since 1--$ T7e secto0 emp1o6s ') mi11ion peop1e and acco8nts 2o0 -L o2 t7e GDP
<akistan MaFor E$'orts
10 60 50 (%tt%n = s"are 40 30 20 10 0 90991 92993 94995 96991 98999 9992000 2000901 2001902 2002903 20039042 Year .eather /ice S+nthetic Te0ti e Sp%rts G%%ds %thers
"ig &
So80ceC Economic S80:e6
3.
Pa/istan T5C =is7>71is G,o8a, T5C
Pakistan in TeDti1e and c1ot7ing at nea016 S * 5i11ion and ,, pe0cent o2 tota1 eDpo0ts acco8nts 2o0 nea016 ' pe0cent o2 g1o5a1 T?C eDpo0ts O2 t7is tota1G t7e s7a0e o2 teDti1e is ,- pe0centG J7i1e t7at o2 c1ot7ing is 31pe0cent
1*
Economic S80:e6 '$$39$&
9 &' 9
<akistan S"are in Alobal *BC E$'orts C;illion +,,1

*; (hina Pa)istan Others
<akistan *BC *rade +,,1

Te0ti e ( %thin"
( %thin": 31: 31-
*;: 102: 29Others: 148: 42-
Te0ti e: 69: 69-
Pa)istan: 1: 2-
(hina: 96: 21-
F-.%
S(7+2/4 EPB
T7e a5o:e 2ig80es s7oJ t7at in g1o5a1 T?C eDpo0ts 3J7ic7 constit8te nea016 ,L 3S3)3 5i11ion4 o2 g1o5a1 eDpo0ts4 Pakistan acco8nts 2o0 t7e 'L 3S*5i11ion4 in t7e 6ea0 '$$& A1so cont0a06 to t7e g1o5a1 t0end PakistanAs eDpo0ts mo0e in teDti1e 3,-L4 0at7e0 t7an in c1ot7ing 331L4 J7ic7 is a g1o5a1 t0end 1+ #oJe:e0G 8n1ike ot7e0 co8nt0ies Pakistan 7as 2ai1ed to di:e0si26 its eDpo0ts and sti11 a maKo0 c78nk o2 eDpo0ts depends on cotton p0od8ction and associated teDti1e ind8st06 S8c7 a 7ig7 deg0ee o2 concent0ation o2 eDpo0ts in a 2eJ items is a maKo0 so80ce o2 insta5i1it6 in eDpo0t ea0nings A poo0 cotton c0op Jo81d t78s se0io8s16 a22ect tota1 eDpo0t p0oceeds as 7as 5een t7e case in t7e past
3 19 Structure of the Industry

Ente0p0ises in t7is secto0 consist o2 spinningG Jea:ingG p0ocessing and 2inis7ingG knitted 2a50ics and c1ot7ingG Jo:en ga0mentsG and Joo1en spinningG Jea:ing and ga0ments TeDti1e ente0p0ises inc18de :e0tica116 integ0ated 8nitsG 1a0ge ente0p0ises dea1ing in eDc18si:e16 knitting and Jo:en ga0mentsG and sma11 2acto0ies in:o1:ed in 2inis7ingG d6eing and knitJea0 ope0ations ED7i5it >>II and >>III in t7e AnneD p0o:ide t7e <8antitati:e 2ig80es o2 t7e ke6 a0eas Jit7 in teDti1es and c1ot7ing secto0 in Pakistan #oJe:e0 one m8st keep in mind t7e st0engt7s and Jeaknesses o2 Pakistani T?C secto0 J7ic7 Ji11 0e:ea1 t08e compa0ati:e ad:antage Pakistan 7as in T?C 5e2o0e ana16=ing an6 imp1ication 2o0 its T?C secto0
/5&,5I Strengt"s o# <akistanGs *e$tile H

1+
P0od8ction o2 5est <8a1it6 o2 Cotton 2i50e .oJ 1a5o0 cost 3ED7i5it >>4 A:ai1a5i1it6 o2 ski11ed Jo0k2o0ce and ot7e0 0aJ mate0ia1s ;ette0 cotton 6ie1d pe0 7ecta0e
"0om a0tic1e N Pakistan Knitting its Ja6 in t7e g1o5a1 teDti1e and c1ot7ing secto0O in NEDpo0t TimesO Ma6 '$$&
9 &3 9
S85stantia1 in:estments 8nde0 ;MREG0een2ie1d p0oKects
/5&,5II )eaknesses o# <akistanGs *e$tile

Demand and s8pp16 gap o2 Cotton Cotton contamination .oJ 1a5o0 p0od8cti:it6 #ig7 ene0g6 cost and s85se<8ent16 7ig7 inp8t cost .ack o2 R?D Na00oJ p0od8ct and ma0ket 5ase .ack o2 coo0dination and s6ne0g6 5etJeen t7e p851ic and p0i:ate secto0
/5&,5III I age
Flo9 HualityE lo9 priceE non'consistent and unreliable suppliers.G
TeDti1e /ision '$$)
"o0 potentia1 impo0te0sG Pakistani impo0te0s a0e not t7e p0e2e00ed s8pp1ie0s 5eca8se o2 p0od8cts and <8a1it6 o2 cottonG de1i:e06 timesG non9eco 20iend16 teDti1e and 1ack o2 inno:ati:e ideas
/5&,5IV *owards Val%e Addition

EDpo0ts o2 teDti1e man82act80es a0e going st08ct80a1 t0ans2o0mation 20om 1oJ to 7ig7e0 :a18e added items ED7i5it >>I/ in AnneD s7oJs t7at Jit7in t7e eDpo0ts o2 teDti1e man82act80eG t7e s7a0e o2 cotton %a0n and Cotton C1ot7G 0ep0esenting 0aJ mate0ia1 eDpo0ts 7as dec1ined 20om 1- pe0cent to 1& + pe0cent and '' & pe0cent to '$ - pe0cent 0especti:e16 d80ing t7e 1ast siD 6ea0s 1- On t7e ot7e0 7and t7e s7a0es o2 knit Jea0G 5ed Jea0 and toJe1sG 0ep0esenting :a18e added eDpo0ts s7oJed a signi2icant inc0ease 20om 1& - pe0cent to 1* 3 pe0centG 1' 3 pe0cent to 1* & pe0cent and 3 , pe0cent to & + pe0cent 0especti:e16'$ T7e 0emaining items o2 eDpo0ts 30ead6 made ga0mentsG made98p a0tic1es4 did not s7oJ an6 app0ecia51e imp0o:ement #oJe:e0G t7e eDpo0t s7a0e o2 s6nt7etic teDti1es s7oJed a dec1ine 20om + $ to , 1o2 s6nt7etic teDti1es s7oJed a dec1ine 20om + $ , 1 pe0cent d80ing t7is pe0iod
"ig ,
So80ceC Economic S80:e6 '$$&
E$'ort o# *e$tile Man%#act%res
25#0 (%tt%n <arn (%tt%n ( %th =nit >ear = s"are 15#0 &ed Wear T%>e s Tents: (an!as4 Tarp3 in 10#0 /ead+ Made Garments S+nthetic Te0ti es 5#0 Made ;p Artic es Others
20#0
0#0
1-
1998999
1999900
2000901 Year
2001902
2002903
20039042
Economic S80:e6 '$$39$& '$ Economic S80:e6 '$$39$&
9 && 9
ED7i5it >>/ and ED7i5it >/I in t7e AnneD s7oJ t7e s7i2t o2 ind8st06 toJa0ds mo0e man82act80ed goods T7e c7anging composition o2 eDpo0ts as pe0 eD7i5it >/I s8ggests t7at Pakistan is no 1onge0 a co8nt06 t7at 0e1ies 7ea:i16 on t7e P0ima06 Commodities 2o0 2o0eign eDc7ange Simi1a016 ED7i5it >>/I and eD7i5it >/II in t7e AnneD s7oJs t7at 5ig c78nk o2 teDti1e eDpo0ts in t7o8sands 08pees is acco8nted 2o0 made 8p a0tic1es A1so ED7i5it >>/II and eD7i5it >/III a1so s7oJ t7at 0ead6 made ga0ments and 7osie06 7as 0ising 5a0 g0ap7 2o0 t7e 1ast decade T7is is t7e a0eas Pakistan 7as to concent0ate in post ATC 0egime i2 Pakistan Jants to gain t7e ad:antage o2 20ee0 t0ade a2te0 @an1G '$$) T7e :a18e addition is t7e 0o6a1 0oad i2 Pakistan act8a116 Jants to mate0ia1i=e its compa0ati:e ad:antage in teDti1es and c1ot7ing
/5&,5V Market Access( Direction o# E$'orts in <ost I%ota Regi e5

Pakistan t0ades Jit7 a 1a0ge n8m5e0 o2 co8nt0ies 58t its eDpo0ts a0e 7ig716 concent0ated in K8st a 2eJ o2 t7em name16 t7e !SAG t7e !KG Ge0man6 and @apan as depicted in eD7i5it >I> T7e E! and t7e !SA a0e t7ose <8ota co8nt0ies J7o a0e PakistanAs 1a0gest 586e0s and J7ose s7a0e in eDpo0ts is '1 and '&L 0especti:e16 T7e ot7e0 tJo <8ota co8nt0ies in PakistanAs g1o5a1 T?C M T80ke6 and Canada M 7a:e a pe0centage s7a0e o2 1 ) and $ -1L T7e tota1 :a18e o2 eDpo0ts to <8ota co8nt0ies is to t7e t8ne o2 S) 5i11ion J7ic7 is nea016 *1 L o2 tota1 eDpo0ts o2 S* 5i11ion in T?C T7e ATC p0o:ides 2o0 t7e comp1ete p7asing o8t o2 t7e <8antitati:e 0est0ictions on t7e eDpo0t o2 T?C p0od8cts 56 Decem5e0 31G '$$& C800ent16 t7ese <8antitati:e 0est0ictions a0e app1ied 56 t7e E!G !SAG CanadaG and T80ke6 on T?C eDpo0ts 20om man6 de:e1oping co8nt0ies T7is conse<8ent16 0est0icts ma0ket access Sta0ting @an8a06 1G '$$) 7oJe:e0 G <8ota 0est0ictions a0e comp1ete16 1i2ted and t7e ma0ket access to t7e economies o2 t7e E! and No0t7 Ame0ica Ji11 ce0tain16 inc0ease Since t7e tJo 1a0gest ma0kets 2o0 T?C eDpo0ts a0e t7e <8ota co8nt0ies t7e 0emo:a1 o2 <8antitati:e 0est0ictions Ji11 gi:e g0eate0 access to Pakistani p0od8cts #oJe:e0G t7e0e a0e a 2eJ 2acto0s t7at m8st 5e taken into acco8nt 5e2o0e d0aJing an6 conc18sions a5o8t a 1ike16 inc0ease in PakistanAs ma0ket s7a0e
C7(', U*1/+7'-:-?,'-(*4 Pakistan 7as ne:e0 0ea1i=ed its 2811 <8ota in t7ese tJo ma0kets A:e0age <8ota 0ea1i=ation 56 Pakistan 7as on16 5een a0o8nd *$ L '1It is eit7e0 5eca8se o2 1oJ p0od8ction o0 5eca8se o2 1oJ <8a1it6 standa0ds o2 o80 p0od8ct making t7e demand 1ess 2o0 o80 p0od8cts in t7e de:e1oped 0ic7 pa0t o2 t7e Jo01d
'1
EDpo0t P0omotion ;80ea8
9 &) 9
C7(', U'-:-?,'-(* P,D-&',* <G= Region (8ota !ti1i=ation %ea0 !SA E! Canada T80ke6 Tota1
1--++ $& *+ $1 ,* ,& 1' -1 *3 -,
'$$$ +) -1 *+ ), *3 ++ &3 -& *, ,)
'$$1 +& 3' *+ '' *- ,' 3' &3 *& 3'
'$$' +) 1* *, &) *& 3+ &, * *) 31
It is 5eing Jide16 p0edicted t7at co8nt0ies 2ai1ing to 0ea1i=e t7ei0 2811 <8ota ma6 2ind it di22ic81t to sec80e a signi2icant inc0ease in t7ei0 ma0ket s7a0e It is 5eca8se in t7e post <8ota 0egime t7e ma0ket access 2o0 eDpo0ts o2 ot7e0 de:e1oping co8nt0ies to t7e !SA and E! Ji11 a1so inc0ease T7is means o80 eDpo0ts Ji11 2ace g0eate0 competition
S788:0 &-1/ I&&7/& ,*1 C5-*/&/ T5+/,' T7e 1i2ting o2 <8otas Ji11 t0ans2o0m t7e T?C ma0ket 20om a se11e0 to a 586e0 ma0ket and inc0ease p0ice competition Additiona116G T?C eDpo0ts Ji11 2ace c7a11enges 1ike socia1 comp1ianceG en:i0onmenta1 standa0dsG contamination o2 cottonG sec80it6 0e1ated iss8es and non9ta0i22 5a00ie0s T78s p0ice competition and <8a1it6 comp1iance Ji11 d0i:e t7e 28t80e T?C eDpo0t ma0ket and Pakistan can on16 en7ance its s7a0e in t7e g1o5a1 T?C ma0ket in post <8ota 0egime 56 2oc8sing on t7e a5o:e mentioned a0eas C7ina at p0esent is t7e 1a0gest s8pp1ie0 o2 !S teDti1e impo0tsG acco8nting 2o0 nea016 1, pe0cent o2 !S teDti1e impo0ts J7e0eas IndiaAs s7a0e is +L and Pakistan 0anks 2o80t7 Jit7 *L s7a0e in !S teDti1e impo0ts Simi1a016 t7e pe0centage o2 C7inese c1ot7ing eDpo0ts to t7e !S ma0ket is o:e0 1)L and Jo0t7 S 1$ 5i11ion W7i1e PakistanAs s7a0e in c1ot7ing eDpo0ts is K8st nea016 1 )L J7ic7 is 7a12 o2 ;ang1ades7 s7a0e
C7ina is a1so t7e 1a0gest s8pp1ie0 o2 E! teDti1e impo0ts among de:e1oping nations 2o11oJed 56 T80ke6G India and Pakistan T7e incest8o8s int0a E! t0ade amo8nts to a5o8t ,3L o2 E! impo0ts C7inaAs s7a0e is s1ig7t16 1ess t7an )L T7e s7a0e o2 Pakistan and India is 3 ) and ' &L 0especti:e16 As 2o0 E! c1ot7ing impo0tsG C7ina again 7as t7e 1a0gest s7a0eG o8tside E! itse12G J7ic7 is 11 )L T7e ot7e0 maKo0 s8pp1ie0s inc18de T80ke6G India and ;ang1ades7 ;ot7 India and ;ang1ades7 eDpo0t in eDcess o2 S ' ) 5i11ion eac7 to t7e E! PakistanAs c1ot7ing eDpo0ts to t7e E! on16 0ake in S 1 5i11ion Anot7e0 impo0tant 2act is t7e pe0centage o2 eDpo0t simi1a0it6 2o0 PakistanAs teDti1e and C1ot7ing EDpo0ts to t7e !SA Jit7 t7e C7inaAs T?C eDpo0t J7ic7 is '& 3L 2o0 a11 teDti1e p0od8cts and '* 'L 2o0 a11 made 8p a0tic1es Simi1a016 2o0 t7e E! t7e pe0centage is 1&L and '*L 0especti:e16 '' Wit7 t7e 0emo:a1 o2 <8ota 0est0ictionsG t7e s7a0e o2 de:e1oping co8nt0ies in E! and t7e !SA impo0ts Ji11 inc0ease ;8t J7ic7 co8nt06 Ji11 g0a5 a 5igge0 piece o2 t7e pieP T7anks to economies o2 sca1e and a 7ig716 s85sidi=ed econom6 t7at a11oJs C7inese p0od8cts to 5e mo0e p0ice competiti:eG C7ina stands a 5ette0 c7ance t7an an6 ot7e0 co8nt06
''
"0om a0tic1e N Pakistan Knitting its Ja6 in t7e g1o5a1 teDti1e and c1ot7ing secto0O in NEDpo0t TimesO Ma6 '$$&
9 &, 9
T7e E! and t7e !SAG att0acted 56 t7e Wo01dAs 1a0gest ma0ket G ma6 gi:e C7ina specia1 t0eatment #oJe:e0G 8n1ike ot7e0 de:e1oping co8nt0iesG C7ina Ji11 2ace <8antitati:e 0est0ictions ti11 t7e end o2 '$$* T7is Ji11 gi:e some 50eat7ing 0oom to ot7e0 de:e1oping economies 1ike India and Pakistan Second16G as t7e p0ice competition intensi2iesG p0o2its Ji11 5e s<8ee=ed and ma0gina1 eDpo0te0s ma6 5e 2o0ced to <8it #ence t7e de:e1oping co8nt0ies 1ike ;ang1ades7 J7ic7 a0e not s85Kect to <8ota 0est0ictions 5eca8se o2 5eing .DC mig7t 1ose t7ei0 ma0ket s7a0e EDpo0te0s enKo6ing t7e economies o2 sca1e a0e 1ike16 to 5e t7e maKo0 5ene2icia0ies
R/.-(*,: T+,1-*. A.+//)/*' <RTA&=
One o2 t7e maKo0 Jeaknesses o2 Pakistan is t7at it is not a mem5e0 o2 an6 :i50ant 0egiona1 o0gani=ation T7is 7as 5een 7ai1ed as an e0a o2 0egiona1 a11iances 3RTAs4 and t7e mem5e0s o2 a RA gi:e ta0i22 concessions to eac7 Regional *rade &--0 C@S Million ot7e0 o:e0 So%rce I*C and a5o:e t7ei0 commitments 8nde0 t7e WTO E:en t7o8g7 Pakistan is a mem5e0 o2 tJo RTAs9 SAARC and ECO M t7e t0ade pe02o0mance 7as so 1800000 1600000 2a0 5een disma1 amongst t7e 1400000 mem5e0s as s7oJn in t7e 2ig 1200000 1000000 + 5e1oJ
800000 600000 AP*( 1136868 *; ?A8TA AS*A? *(O SAA/(
1016512
521649
In 1--+ t7e t0ade amongst t7e 400000 61156 4836 APEC co8nt0ies acco8nted 2o0 200000 0 *0p%rt S1*3,+,+ mi11ion J7i1e 2o0 t7at matte0 t7e t0ade among ECO and SAARC co8nt0ies E$'ort 0emained mi11ion and S'+)+ mi11ion 0especti:e16'3 W7at a so006 2ig80e indeed
2858
S&,3,
3 11 Tariffs in the Post M(A Phase

Anot7e0 domain J7ic7 Ji11 ce0tain16 a22ect Pakistan T?C eDpo0ts is Ta0i22s A1t7o8g7 <8ota 0est0ictions Ji11 5e 0emo:ed in '$$)G M"N ta0i22s on T?C Ji11 0emain T7ese a0e not 1ike16 to 5e 0ed8ced in t7e 28t80eG gi:en t7e po1itica1 sensiti:it6 o2 t7eses ind8st0ies and t7e 0est08ct80ing and adK8stment p0o51ems associated Jit7 t7ese ind8st0ies in de:e1oped co8nt0ies A1t7o8g7 t7e a:e0age ta0i22 in de:e1oped co8nt0ies 7a:e come doJn 20om , 3L d80ing t7e P0e !08g8a6 Ro8nd to a5o8t 3 +L on a:e0age 2o0 man82act80ed goods G M"N ta0i22s 2o0 T?C and pa0tic81a016 on t7e appa0e1s contin8e to 0emain 7ig7 A:e0age ta0i22 on T?C p0od8cts in 5ot7 !S and E! 7a:e tended to go 8p in 1ine Jit7 t7e stage o2 p0ocessing to p0otect t7e 7ig7 :a18e added items in 5ot7 co8nt0ies T7e !S M"N 0ates on se1ected appa0e1s 0ange a0e as 7ig7 on a:e0age as 1-LG on cotton 6a0n *L and Jo:en cotton 2a50ics is 1$L T7e compa0a51e 2ig80es 2o0 E! a0e a0o8nd 1'L 2o0 appa0e1sG &L on cotton 6a0n and +L on Jo:en cotton 2a50ics
'3
So80ce C Inte0nationa1 T0ade Cente0 3ITC4
9 &* 9
3 1! Preferentia, Trade In T5C

GSP is t7e sc7eme 56 J7ic7 de:e1oped M especia116 !S and E! p0o:ide p0e2e0entia1 ma0ket access to goods 20om e1igi51e de:e1oping co8nt0ies P0e2e0entia1 access can eit7e0 mean <8ota920ee stat8sG andEo0 ma0ket access at p0e2e0entia1 ta0i22s as compa0ed to M"N 0ate o0 d8t6 20ee stat8s 2o0 goods 20om e1igi51e co8nt0ies T7e GSP stat8s in 5ot7 t7e !S and E! a0e 5ased on income c0ite0ia speci2ied in te0ms o2 pe0 capita income and Pakistan comp1ete16 2812i1s t7at c0ite0ia
GSP4
!S GSP 7as p0od8ct c0ite0ia as Je11G speci26ing J7ic7 p0od8cts a0e e1igi51e 2o0 GSP stat8s T?C p0od8cts a0e speci2ica116 p0o7i5ited in !S Additiona116 t7e !S GSP eDpi0ed in '$$1 and 7as not 5een 0eneJed T7e E! GSP s6stem 7as 5een in e22ect since 1-*1 and is o2 impo0tance to Pakistan E! 7as an income catego06 2o0 GSP e1igi5i1it6 and Pakistan 2812i1s t7at and E! 7as a p0od8ct c0ite0ion as Je11 and t7e eDtent o2 GSP 5ene2it :a0ies ac0oss p0od8cts P0od8cts a0e c1assi2ied as sensiti:e 3n8m5e0ing 33$$4 and non9sensiti:e 3n8m5e0ing 3*$$4 2o0 t7e sake o2 GSP p0e2e0ences T?C is in t7e sensiti:e p0od8cts 0ange "o0 non sensiti:e items in E! t7e0e is no <8ota and d8t6 20ee access J7i1e t7e0e a0e p0e2e0entia1 ta0i22s as compa0ed to t7e M"N 0ate 2o0 sensiti:e p0od8cts Pakistan 7as 5een acc08ing t7e 5ene2its o2 t7is sc7eme 2o0 t7e 1ast so man6 6ea0s and is 1ike16 to enKo6 in t7e time to come #oJe:e0 t7e GSP 5ene2its can 5e denied in E! on tJo conditions a4 !nde0 t7e E;2:7&-(* 8+-*2-8:/ i e J7en a co8nt06As pe0 capita income Ji11 eDceeds t7e 1e:e1 speci2ied and 54 8nde0 t7e G+,17,'-(* P+-*2-8:/ i e i2 a secto0 in a 5ene2icia06 co8nt06 is p0es8med to 7a:e ac7ie:ed a ce0tain 1e:e1 o2 competition
3 13 Imp,ementation Issues
It is di22ic81t to act8a116 2o0ecast t7e pe02o0mance o2 Pakistani teDti1e in post <8ota 0egime 5eca8se t7e optimism Pakistan 7ad at t7e time o2 ag0eement on T?C in 1--& 2o0 p7asing o8t o2 teDti1e <8ota 0est0ictions 8nde0 M"A since 1-*& 2aded signi2icant16 Jit7 t7e 8nsatis2acto06 act8a1 imp1ementation o2 t7e ag0eement d80ing t7e past 2o80 6ea0s "o11oJing aspects in t7is 0ega0d a0e Jo0t7 notingC
Since t7e integ0ation 7as 5een p0og0ammed in 2o80 stages and since tec7nica116 t7e impo0te0s 7a:e 5een gi:en disc0etion to decide J7ic7 p0od8cts to integ0ate at eac7 o2 t7e 2i0st t70ee stagesG t7e nat80e o2 t7e integ0ation act8a116 made 56 t7e maKo0 T?C impo0ting co8nt0ies in t7e 2i0st tJo stages 7as 5een s8c7 to inc18de items J7ic7 a0e eit7e0 comme0cia116 insigni2icant o0 not const0ained 8nde0 t7e M"A 3i e non9<8ota items4 FIn t e )irst sta!eE t e mandatory inte!ration o) 13 J o) 1--0 import volumes 9as attained 9it out any restricted item bein! inte!rated e0cept )or 9or4'!loves by one country. >i4e9iseE an evaluation o) t e products inte!rated in t e second sta!e reveals little meanin!)ul en ancement )or mar4et access )or developin! countries. %t t e be!innin! o) 1--$ (i.e. t e second sta!e)E 9 en a t ird o) t e 1--0 import volumes o) te0tiles and clot in! ad been
9 &+ 9
inte!rated into A%TT disciplineE only about 7J o) items restricted under t e MF% ad been inte!ratedG.21
T7e co8nt06E0egion speci2ic detai1s o2 *L 3, **L to 5e p0ecise4 gi:en in t7e same 0epo0t 0e:ea1 ' 3'L 2o0 CanadaG 3 1)L 2o0 E! and 1 3$L 2o0 !SA In t7e case o2 PakistanG it is Jo0t7J7i1e to note t7at no item p0e:io8s16 8nde0 <8ota 7as 5een inc18ded in t7e 2i0st stage o2 integ0ation and t7at t7e integ0ation in 0espect o2 7ig7 :a18e9added teDti1e items J7ic7 a0e o2 specia1 inte0est to Pakistan 7as 5een postponed 2o0 t7e tai19end stageG a p7enomenon 5eing te0med as NEnd9.oadingO It means t7at it Ji11 not 5e 5e2o0e '$$) t7at Pakistan sees its <8ota 0est0ictions p7ased o8t
Impo0ts o2 teDti1e goods a0e a1so 5eing p0otected 56 t7e ind8st0ia1 co8nt0iesG especia116 t7e !SG t70o8g7 mo0e 0est0icti:e R81es o2 O0igin 3ROR4 T7is kind o2 ROR 5eing against t7e p0o:isions o2 t7e ATC Ji11 de2inite16 dis08pt t0ade in T?C T7e t0ansitiona1 sa2eg8a0d mec7anism p0o:ided 8nde0 A0tic1e , o2 t7e ATC p0o:ides 2o0 neJ disc0iminato06 0est0ictions i2 T?C impo0ts 20om a speci2ic co8nt06 mo8nt to s8c7 inc0eased <8antit6 as to s8c7 inc0eased <8antit6 as to ca8se se0io8s damage to t7e impo0ting co8nt06As domestic ind8st06 Since t7e 1o556 o2 teDti1e p0otectionism is one o2 t7e st0ongest in t7e ind8st0ia1 co8nt0iesG it is not s80p0ising t7at t7is p0o:ision is 5eing eDtensi:e16 mis8sed 56 t7ese co8nt0ies 2o0 c805ing teDti1e impo0ts No p0og0ess 7as 5een made on t7e ATC p0o:ision 3A0tic1e 14 2o0 taking positi:e meas80es J7ic7 0e21ect pa0tic81a0 inte0est o2 t7e cotton p0od8cing eDpo0ting co8nt0ies 8nde0 J7ic7 Pakistan Jo81d 7a:e 5een a de2inite 5ene2icia06
3 1% (ORECASTING
Dete0mining t7e o:e0a11 impact o2 t7e <8ota 0egime on an6 co8nt06 is eDt0eme16 di22ic81t At t7e 2ina1 p0od8ct 1e:e1G a g0eat dea1 depends on J7et7e0 t7e co8nt06 eDpo0ts most o2 its p0od8ction to 0est0icted ma0kets T7ose t7at depend 7ea:i16 on t7e 0est0icted ma0kets a0e 1ike16 to 1ose mo0e 20om dec1ining p0ices 3as in post <8ota 0egime s8pp16 Ji11 5e inc0eased4 t7an t7e6 gain 20om inc0ease in p0ices on t7e 8n0est0icted ma0kets Con:e0se16G co8nt0ies J7ose eDpo0ts a0e di0ected main16 to 8n0est0icted ma0kets eit7e0 5eca8se t7ei0 <8otas a0e sma11 o0 5eca8se t7ei0 compa0ati:e ad:antage is pa0tic81a016 st0ong9 a0e mo0e 1ike16 to gain 20om t7e inc0ease in p0ices on Jo01d ma0kets 2o11oJing a5o1ition o2 <8otas
'&
!NCTAD Repo0t 31--+4 Pg *$
9 &- 9
<ear
T4(
Te0ti es %n + 38#1 38 39#1 38#8 31#2 40 43#1 50#1 49#1 49#9 50#1 52#4
1991 41#9 1992 46#9 1993 51#6 1994 53 1995 50#4 1996 51#1 1991 55#1 1998 61#1 1999 62#3 2000 61#1 2001 61#3 2002 62#1 S%3rce@ The W%r d &an) /ep%rt
T,6:/ % s7oJs t7e s7a0e o2 PakistanAs eDpo0ts o2 T?C di0ected to 0est0icted ma0kets o2 t7e !SAG E! G Canada and No0Ja6 T7e eD7i5it 5ased on t7e data in t7e ta51e 5e1oJ s7oJs t7at Pakistan eDpo0ted 1ess t7an 7a12 o2 its p0od8cts to 0est0icted ma0kets in 1--1 Since t7enG t7e s7a0e o2 its eDpo0ts going to 0est0icted ma0kets 7as g0oJnG eit7e0 5eca8se t7e <8otas 7a:e g0oJn o0 5eca8se PakistanAs competiti:e st0engt7 in 8n0est0icted ma0ket 7as 2a11en #oJe:e0 t7e s7a0e di0ected to t7e 0est0icted ma0kets Jas sti11 on16 ,$L o2 tota1 eDpo0ts o2 T?C and 5a0e16 a5o:e )$L 2o0 teDti1e p0od8cts a1one
<akistan S"are o# *e$tile <rod%ction Directed to Restricted Markets
10 60 = S"are 50 40 30 20 10
& a n)
T4( Te0ti es %n +
0
9 1 2 9 3 94 1 9 9 5 9 6 1 9 9 1 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 S % 3 rc 1 99 1 9 1 9 19 1 9
Yea r
I2 Pakistani eDpo0ts Je0e st0ong16 di0ected toJa0ds t7e 8n0est0icted ma0kets and Je0e 8na51e to send a sma11 20action o2 its eDpo0ts to 0est0icted ma0ketsG Je co81d 5e 0easona516 con2ident t7at it Jo81d eDpe0ience s7o0t M08n gains 20om a5o1ition o2 <8otas Con:e0se16G i2 it Je0e a51e to send a1most a11 o2 its eDpo0ts to t7e 0est0icted ma0kets Je co81d 5e 0easona516 con2ident t7at it Jo81d 1ose 20om <8ota a5o1ition PakistanAs inte0mediate stat8s mean t7at Je can not 5e s80e o2 t7e impact o2 <8ota a5o1ition Jit7o8t a 2o0ma1 <8antitati:e ana16sis t7at can take into acco8nt t7e gains o0 1osses in t7e ma0ket 2o0 2ina1 goodsG and t7e gains in t7e ma0ket 2o0 t7e inte0mediate and 0aJ mate0ia1s
')
T7e Wo01d ;ank Repo0t NImp1ications "o0 Pakistan O2 A5o1is7ing TeDti1e And C1ot7ing EDpo0t (8otasO Ap0i1 3$G'$$&
2 T 0 h 0 e W 2 % r d
9 )$ 9
/5&15I *rade <olic! o# <akistan +,,1 Review +2

T7e 2o11oJing steps 7a:e 5een p0oposed in t7e T0ade Po1ic6 '$$& 2o0 t7e 8p g0adation and p0omotion o2 Pakistan T?C secto0C It 7as 5een decided to 7ei0 o8t1ets in D85aiG .ondon and NeJ %o0k p0omoting t7e image and eDpo0ts o2 Pakistani p0od8cts A sc7eme 7as 5een 1a8nc7ed to ena51e eDpo0te0s to ac<8i0eE20anc7ise 2o0eign 50and name T7e eDpo0t p0omotion 580ea8 Ji11 7e1p eDpo0te0s o5tain 5ank 2inance at economica1 ma0k 8p 0ates To enco80age eDpo0ts o2 non M t0aditiona1 p0od8cts and eDpo0ts to neJ ma0kets t7e go:e0nment is p0o:iding a ')L 20eig7t s85sid6 on eDpo0ts TJo specia1 eDpo0t =onesG in Ka0ac7i and t7e ot7e0 in t7e P8nKa5 Ji11 5e esta51is7ed Jit7 mode0n in20ast08ct80e T7ese Ji11 cate0 p0ima0i16 to t7e teDti1e secto0 T70ee ga0ments cities 7as 5een p0oposed to 5e 58i1t in Ka0ac7iG .a7o0e and "aisa1a5ad 2o0 p0o:iding one JindoJ 2aci1it6 2o0 t7e SMEs J7ic7 Jo81d on16 5e 20o :a18e added teDti1e secto0s T7e impo0t o2 8sed Esecond 7and mac7ine06 Ji11 5e a11oJedG i00especti:e o2 its impo0t stat8s on comp1etion o2 o:e0seas p0oKects 56 Pakistani companies O:e0seas Pakistanis a0e a11oJed to send goodsG J7ic7 a0e pe0mitted 2o0G impo0t 20om t7ei0 oJn 2o0eign eDc7ange ea0nings a50oad Jit7o8t an6 in:o1:ement o2 1ette0s o2 c0edit
/5&15II *e$tile Vision +,,4+3

A 1ong te0m TeDti1e /ision 7as 5een c0eated to se0:e as a 50oad ta0get to 0e:amp t7e teDti1e ind8st06 o2 t7e co8nt06 T7e de2ined o5Kecti:e isC An openG ma0ket d0i:enG inno:ati:e ? d6namic teDti1e secto0 J7ic7 isC Inte0nationa116 Integ0atedG g1o5a116 competiti:e and 28116 e<8ipped to eDp1oit t7e oppo0t8nities c0eated 56 t7e M"A p7ase o8t and J7ic7 ena51es Pakistan to 5e amongst t7e top 2i:e teDti1es eDpo0ting co8nt0ies in Asia
T/;'-:/ T,+./'& 006!0# TeDti1e EDpo0ts 3;i11ion S4 13 $ Cotton Cons8mption 3Mi11ion ;a1es4 1) $$ MM" cons8mption 3Mi11ion Tonnes4 1 $$ Spind1es 3Mi11ion4 1) $$ S78t1essEAi0Ket .ooms 3)G$$$ $$ Wo01d Ranking in c1ot7ing EDpo0ts 20om ot7e0s Top tJent6
3 1' Recommendations
Encas7ment o2 st0engt7s and add0essing Jeaknesses o2 Pakistani T?C secto0 a0e t7e 0ecommendations 56 t7e p08dent management o2 t7e a:ai1a51e 0eso80ces #oJe:e0 2o11oJing a0e t7e 50oade0 58t 0ea1istic p0oposa1s 7a:e 5een 7ig71ig7tedC P+(172'-3-'0 E*5,*2/)/*'
', '*
"0om T0ade Po1ic6 o2 Pakistan '$$& NTeDti1e /ision '$$)O
9 )1 9
Raising p0od8cti:it6 is ke6 to 0eaping t7e 5ene2its 20om t7e a5o1ition o2 t7e M"A As t7e 28t80e g1o5a1 ma0ket Ji11 5e o2 C1ot7ing Pakistan 7as to concent0ate on mo0e :a18e addition T7e Wo01d ;ank 7as Jo0ked o8t t7at an inc0ease in p0od8cti:it6 o2 '$L in teDti1es and ga0ments Jo81d inc0ease o:e0a11 nationa1 Je12a0e in Pakistan 56 o:e0 !S S &$$ mi11ion pe0 6ea0 '+ #oJe:e0 t7e mec7anisms 56 means o2 J7ic7 t7e a5o:e mentioned ta0get can 5e ac7ie:ed a0eC I)8+(3-*. P+(2/&& E99-2-/*204 I2 1a0ge gains in p0ocess e22icienc6 a0e to 5e ac7ie:ed it is impo0tant t7at e22icienc6 imp0o:ements 5e 2oc8sed on t7e a0eas J7e0e cost a0e 0e1ati:e16 1a0ge in Pakistan Ta51e 5e1oJ p0o:ide an indication o2 t7e cost st08ct80e o2 t7e appa0e1 and teDti1e ind8st0ies in 2o80 ke6 co8nt0ies
C()8(&-'-(* (9 C,&5 C(&'& -* A88,+/: ,*1 T/;'-:/ P+(172'-(*<G= PAKISTAN ;ang1ades7 India C7ina
Mate0ia1s E1ect0icit6 Ot7e0 Ene0g6 Wages ;ene2its T0anspo0t Inte0estERent Sa1es?G A Ot7e0 Costs
Appa0e1 ), 1 3) $13 $& 3* 13 1 *' 11
TeDti1es +' & 3$&, $' '* 3+ 1' $3
Appa0e1 *) & $* $) 11 , '$ $&, '$ '3
TeDti1es ,& ' 11& ), ', $) 13 ) 3) ,,
Appa0e1 &* + $$11 3 $+ '+ & &$ '3 3,
TeDti1es 3- 3 ,& ), 11 ' $&3 1, & *& +)
Appa0e1 *& + $$ '13 * $$ 1$ ', $$ )1
So80ceC Wo01d ;ank In:estment C1imate Assessment S80:e6sG '$$1E'
P+(172' C7,:-'0 I)8+(3/)/*'4 A8gmenting t7e <8a1it6 o2 t7e p0od8cts is not on16 e22ecti:e 2o0 en7ancing t7e p0od8ction 58t it is a1so a m8st to pe02o0m eDceptiona116 Je11 in t7e c1ot7ing secto0 In t7e post ATC e0a o2 7ig7 competition among t7e de:e1oping co8nt0ies in t7e ma0ket o2 !SA and t7e E! G t7e iss8es o2 socia1 comp1iance and ot7e0 non ta0i22 5a00ie0s and t7e p0o:ision o2 :a0io8s sa2e g8a0d mec7anisms <8a1it6 Ji11 5e t7e on16 d0i:ing 2acto0 T7e ta51e 5e1oJ compa0es t7e 8nit :a18e o2 eDpo0ts to t7e !S 2o0 eDpo0ts o2 teDti1es in t7e catego0ies t7at 5ot7 Pakistan and C7ina eDpo0ted to t7e !S in '$$' T7is s8ggests t7at t7e0e is eno0mo8s scope 2o0 PakistanAs eDpo0te0s to ac7ie:e m8c7 7ig7e0 p0ices 2o0 t7ei0 o8tp8ts
R,'-( (9 C5-*,F& E;8(+' 7*-' 3,:7/ '( P,D-&',*F& -* '5/ US ),+D/' 00

'+
'-
Wi11 Ma0tinAs Repo0t o2 W; 0ega0ding (8ota A5o1ition and its impact on Pakistan Ap0i1 3$G'$$& Page 1S(7+2/4 T5/ W(+:1 B,*D R/8(+' A8+-: $0, 00"
9 )' 9
Ratio Ot7e0 Cotton Man82act80e Ot7e0 "80nis7ing ;ed sp0eadsE(8i1ts Cotton S7eets Pi1e ToJe1s A11 TeDti1es '& 1$ ,$ 1'& '1
D-3/+&-9-2,'-(* O9 '5/ I*17&'+0 ,*1 9-*1-*. *-25/ ),+D/'& T7e ad:e0se impact o2 t7e competition in t7e post ATC e0a can 5e so2tened 56 t7e di:e0si2ication o2 t7e teDti1e and c1ot7ing ind8st06 in man6 o2 t7e p0od8cts in J7ic7 Pakistan specia1i=es s8c7 as menAs knit s7i0ts 5eing m8c7 1ess impo0tant to competing co8nt0ies and 2inding nic7e ma0kets J7ic7 a0e not :e06 st0ict on socia1 comp1iance iss8es 2o0 s8c7 p0od8cts I*3/&')/*' O88(+'7*-'-/& In:estment 20iend16 0egime is a1so a m8st 2o0 an6 teDti1e secto0 to t70i:e In:estment in 5ot7 t7e 2o0ms 2o0eign and domestic is t7e need o2 t7e time in T?C secto0 o2 Pakistan Apa0t 20om t7e p0o51ems o2 e1ect0icit6 s8pp16 G Go:e0nment p0ocesses and 1oJ p0od8cti:it6 o2 1a5o0 2o11oJing tJo ke6 a0eas m8st 5e add0essed C L,@ ,*1 O+1/+4 No in:estment Ji11 take p1ace i2 t7e in:esto0 2ee1s t7at 7is in:estment Ji11 5e at t70eat 5eca8se o2 t7e sec80it6 p0o51em So it needs to 5e imp0o:ed in o80 co8nt06 I*9+,&'+72'7+/4 Imp0o:ement o2 t7e nationa1 in20ast08ct80eG especia116 comm8nicationsG ene0g6 0eso80ces and 78man 0eso80ce de:e1opment P+()('/ R/.-(*,: T+,1/ A.+//)/*'& <RTAF&= H FTAF& As a10ead6 mentioned 0egiona1 t0ading is an e22ecti:e too1 to en7ance t7e t0ade o2 t7e pa0ticipant co8nt0ies o2 an6 ag0eement Pakistan s7o81d 1ook 2o0Ja0d to 5ecome t7e mem5e0 o2 an6 potentia1 t0ading 51oc B70/+ D+-3/* C())(1-'0 C5,-* A commodit6 c7ain 0e2e0s to a J7o1e 0ange o2 acti:ities in:o1:ed in t7e design G p0od8ction and ma0keting o2 a p0od8ct Cont0a06 to t7e P0od8ce09d0i:en c7ain J7ic7 a0e 8s8a116 2o8nd in capita1 and tec7no1ogica19intensi:e ind8st0iesG t7e ;86e09d0i:en c7ain is common in 1a5o0 intensi:e G cons8me0 goods ind8st0ies s8c7 as ga0ments G 2ootJea0 and to6s In s8c7 a c7ainG 1a0ge 0etai1e0s and 50and man82act80e0s p1a6 t7e main 0o1e in setting 8p decent0a1i=ed p0od8ction netJo0ks in de:e1oping co8nt0ies As ga0ments is a 1a5o0 intensi:e acti:it6 Pakistan 7as a compa0ati:e ad:antage o2 c7eap 1a5o0 and can 5e encas7ed 56 att0acting t7e g1o5a1 50ands 1ie .e:isG ;anana Rep851ic etc P76:-2!P+-3,'/ I*'/+,2'-(* Most o2 t7e t0ade po1icies in t7e past Jas made in iso1ation 56 t7e go:e0nments NoJ a1most t7e t0end 7as 5een c7anged and a 1ot o2 inp8t is 5eing taken 20om t7e p0i:ate secto0 J7i1e 2o0m81ating nationa1 po1icies 6et GOP s7o81d take initiati:es in not on16 c0eating aJa0eness among t7e stake 7o1de0s 58t a1so
9 )3 9
p0o:ide tec7nica1 ed8cation and R?D 2aci1ities Jit7 t7e co11a5o0ation o2 p0i:ate secto0 P0i:ate secto0 is Ji11ing to in:est Jit7 t7e go:t p0o:ided its gains a0e ass80ed 56 t7e go:e0nment 3$
3 1) Conc,usion
Wo01dJide t0ends in T?C 0e:ea1 t7at c1ot7ing and teDti1e made98ps 0ep0esent t7e g0oJing segment o2 Jo01d T?C T7e 7ig716 competiti:e ma0ket a2te0 t7e 2811 imp1ementation o2 ATC Ji11 5e t7e ma0ket o2 :a18e added p0od8ct PakistanAs T?C t0end is 0e:e0sed to t7at o2 t7e g1o5a1 t0end Jit7 maKo0 s7a0e sti11 coming 20om t7e eDpo0ts o2 teDti1es 0at7e0 t7an c1ot7ing Keeping t7is aspect in :ieJ and t7e to8g7 competition a2te0 @an 1G '$$) Jit7 t7e a:e0age <8a1it6 1e:e1 o2 PakistanAs c1ot7ing eDpo0tsG it is gene0a116 spec81ated t7at Pakistan Ji11 gain in TeDti1e secto0 as compa0ed to C1ot7ing secto0 J7ic7 is mo0e :81ne0a51e in t7e post ATC e0a It is 7a0d to p0edict t7e act8a1 imp1ication o2 <8ota a5o1ition Jit7 o8t intensi:e <8antitati:e ana16sis o2 eac7 p0od8ct 5eca8se o2 t7e inte0mediate 1e:e1 3,$L4 o2 Pakistan T?C eDpo0ts to 0est0icted ma0kets #oJe:e0 t7e optimism Pakistan 7as at t7e ending o2 M"A can not 5e 28116 eDp1oited 5eca8se o2 a10ead6 8nde08ti1i=ation o2 t7e <8otasG imp0ope0 imp1ementation o2 t7e 2o80 stages 56 t7e de:e1oped Jo01dG const0ained p0od8ction o2 Pakistan and to8g7 competition 5eca8se o2 t7e ent0ance o2 ot7e0 de:e1oping co8nt0ies J7ic7 7a:e nea016 t7e same compa0ati:e ad:antages in T?C as Pakistan 7as So t7e sJitc7ing 20om a se11e0 to 586e0 ma0ket Ji11 50ing 5ene2its to t7e co8nt0ies J7ic7 Ji11 5e 5ette0 p0epa0ed in te0ms o2 7ig7 <8a1itati:e p0od8ctionG p0od8cts di:e0si2ication and 7a:ing mo0e nic7e ma0ketsG in20ast08ct80e and e:e06 ot7e0 t7ing a22ecting t7e p0ocess e22icienc6 and t7e p0od8ct <8a1it6 Pakistan 7as to e<8ip 7e0se12 in t7ese a0eas in o0de0 to 0eap t7e 5ene2its o2 m81ti1ate0a1 t0ading s6stem T7e impo0tance o2 RTAs and "TAs can ne:e0 5e 8nde0estimated in t7e g1o5a1 t0ade scena0io T7is is a1so a 5ig Jeakness in t7e conteDt o2 Pakistan t7at it is mem5e0 o2 t7ose RTAs J7ic7 7as a meage0 cont0i58tion in g1o5a1 t0ade T7e g1o5a1 T?C ma0ket in t7e post ATC scena0io Ji11 d0i:e t7e ine22icient and sick teDti1e 8nits toJa0ds mo0e e22icienc6 and ma6 eDpedite t7e t0ans2o0mation 20om 1oJ :a18e addition to 7ig7 :a18e addition a10ead6 in t7e p0ocess %esG t70eat to t7ose ine22icient and o0t7odoD teDti1e 8nits J7o a0e not getting s6nc70oni=ed Jit7 t7e g1o5a1 competiti:e standa0ds A1so e:en 2o0 t7e domestic teDti1e ind8st06 Pakistan can take ad:antages o2 sa2eg8a0d mec7anismG non t0ade 5a00ie0s and imposition o2 ta0i22s at 1engt7s as t7e0e Ji11 5e a 20ee0 t0ade not 20ee t0ade in t7e post ATC e0a
3$
Re2e0ence to .ect80e de1i:e0ed 56 ED9C7ai0man APTMA
9 )& 9
1 C"a'ter 6o%r ( Agric%lt%re Sector %1 Introduction

T7e ag0eement de2ines ag0ic81t80e p0od8cts 3in its AnneD80e 14 Jit7 0e2e0ence to t7e 7a0moni=ed s6stem o2 p0od8ct c1assi2ication9 t7e de2inition co:e0s not on16 5asic ag0ic81t80a1 p0od8cts s8c7 as 50eadG 58tte0 and meatG as Je11 as a11 p0ocessed ag0ic81t80a1 p0od8cts s8c7 as c7oco1ate and sa8sages T7e co:e0age a1so inc18des JinesG spi0its and to5acco p0od8ctsG 2i5e0s s8c7 as cottonG Joo1G si1kG and 0aJ anima1 skins destined 2o0 1eat7e0 p0od8ction "is7 and 2is7 p0od8cts a0e not inc18dedG no0 a0e 2o0est06 p0od8cts
%!
#or,d Trade In A&ricu,ture Sector?
W7i1e t7e :o18me o2 t7e ag0ic81t80a1 eDpo0ts 7as s85stantia116 inc0eased o:e0 0ecent decadesG its 0ate o2 g0oJt7 7as 1agged 5e7ind t7at o2 man82act80esG 0es81ting in a stead6 dec1ine in ag0ic81t80eAs s7a0e in t7e Jo01d me0c7andise t0ade In 1---G ag0ic81t80a1 t0ade acco8nted 2o0 - - pe0 cent31 o2 tota1 me0c7andise Jit7 0espect to Jo01d 3ED7i5it >>/III4G ag0ic81t80e is sti11 a7ead o2 secto0s s8c7 as mining p0od8ctsG a8tomoti:e p0od8ctsG c7emica1sG teDti1es and c1ot7ing o0 i0on and stee1 Among t7e ag0ic81t80a1 goods t0aded inte0nationa116G 2ood p0od8cts make 8p a1most +$ pe0 cent o2 t7e tota1 T7e ot7e0 main catego06 o2 ag0ic81t80a1 p0od8cts is 0aJ mate0ia1s Since t7e mid 1-+$sG t0ade in p0ocessed and ot7e0 7ig7 :a18e ag0ic81t80a1 p0od8cts 7as 5een eDpanding m8c7 2aste0 t7an t0ade in t7e 5asic p0ima06 p0od8cts s8c7 as ce0ea1s Agric%lt%re And )orld Econo !
ot"er /51=
ining &,5+=
agric%lt%re -5-=
an%#ac%ring 3254=
So80ceC JJJ Jto o0g
TJo t6pes o2 ag0ic81t80a1 p0od8cts a0e t0aded inte0nationa116 Jit7 di22e0ent p0actices and se:e0e ma0ket disto0tion Tempe0ate p0od8cts J7ic7 inc18de g0ainG meatG dai06 etc ente0 de:e1oped ma0ket Jit7 7ea:6 taDes t7e0e56 p0otecting t7ei0 domestic ma0ket W7e0e as
31
So80ceC WTO '$$3
9 )) 9
t0opica1 p0od8cts J7ic7 inc18de teaG co22eeG 5ananasG o0angeG cocoa 5eans etc ente0 de:e1oped ma0ket eit7e0 d8t6920ee o0 at a 1oJ taD 0ates Ta51e 1 T,6:/!1$ A:e0age ta0i22 on tempe0ate p0od8cts in maKo0 OECD co8nt0ies 11,L +'L *+L A:e0age ta0i22 on T0opica1 p0od8cts in maKo0 OECD co8nt0ies $L $L 3L
Dai06 .i:estock G0ains
Cocoa ;eans Co22ee O0anges
%3
0ac/&round to *RAoA?
P1anne0s 2o0 t7e post9second Wo01d Wa0 0econst08ction and economic coope0ation set 8p t7e Inte0nationa1 T0ade O0gani=ation 3ITO4 to o:e0see t7e ope0ation o2 a m81ti1ate0a1 code o2 t0ade cond8ct T0ade iss8es t7en inc18ded ta0i22sG <8antitati:e 0est0ictionsG state9t0ading entitiesG eDpo0t s85sidies and p0e2e0entia1 a00angementsG and t7e possi5i1it6 o2 specia1 0egime 2o0 t0ade in commodities 3o2 conce0n to de:e1oping co8nt0ies4 Po1itics p0e:ented t7e ITOAs esta51is7mentG 58t its comme0cia1 po1ic6 p0o:isions p0o:ided t7e 20ameJo0k 2o0 disc8ssing g1o5a1 t0ade T7e 1-&* Gene:a t0ade con2e0ence 0es81ted in t0ade acco0d9 t7e GATT 1-&*9 signed 56 '3 cont0acting Pa0ties 3co8nt0ies4 T7e 2eat80es o2 t7e ag0eement9 its 1imited mandateG <8a1i2ied 1ega1 o51igationsG 08dimenta06 disp8te sett1ement mec7anismG imp0o:ised instit8tiona1 a00angements in Gene:aG and 8nsatis2acto06 a00angements 2o0 ag0ic81t80a1 t0ade9 Je0e to sta6 Jit7 t7e GATT 2o0 t7e neDt &* 6ea0s P0otectionism and disc0imination a0e ke6 2eat80es o2 inte0nationa1 t0ade in ag0ic81t80e p0od8cts Go:e0nments 7a:e a1Ja6s 8sed :a0io8s meas80es to assist o0 s85sidi=e ag0ic81t80e 5ot7 in domestic p0od8ction and in t7e t0ade o2 ag0ic81t80a1 goods T0ade po1ic6 inst08ments s8c7 as domestic s85sidies on p0od8cts and inp8tsG eDpo0t s85sidiesG impo0t 5a00ie0sG <8antitati:e 0est0ictions and non9ta0i22 5a00ie0s 7a:e dea1t Jit7 t7e disposa1 o2 s80p18s p0od8ction associated Jit7 t7e c6c1ica1 nat80e o2 ag0ic81t80a1 p0od8ctionG insta5i1it6 and inade<8ac6 o2 ag0ic81t80a1 p0ices and ea0ningsG and access to domestic ma0kets In addition ag0ic81t80a1 t0ade po1icies 7a:e 5een s7aped 56 maKo0 po1itica1 and economic de:e1opmentsC t7e 1-3$ G1o5a1 Dep0ession and t7e co11apse in
3'
T7is "a0 and No "a0t7e0P N8dging ag0ic81t80a1 Re2o0ms 2o0Ja0dAs Kost1ing and #at7aJa6G instit8te o2 inte0nationa1 economicsG ma0c7 '$$& And "AOG Septem5e0 '$$3
9 ), 9
ag0ic81t80a1 p0icesG t7e Second Wo01d Wa0 and t7e 0eg81ation o2 t7e ag0i92ood secto0 Jit7 p0ice cont0o1s etc T7e !08g8a6 Ro8nd p0od8ced t7e 2i0st m81ti1ate0a1 ag0eement dedicated to t7e secto0 It Jas a signi2icant 2i0st step toJa0ds o0de0G 2ai0 competition and a 1ess disto0ted secto0
%%
T"E #TO REGIME ON AGRIC*@T*RE
T7e WTO 0egime on ag0ic81t80e comp0ises t7e Ag0eement on Ag0ic81t80e 3AoA4G t7e Sanita06 and P76tosanita06 3SPS4 Meas80esG t7e Tec7nica1 ;a00ie0s to T0ade 3T;T4 and TRIPsG J7ic7 a0e a11 inte091inked to eac7 ot7e0
%'
The A&reement on A&ricu,ture
In 1--)G t7e 6ea0 t7at t7e WTO Jas esta51is7edG t7e 2i0st e22ecti:e 081es go:e0ning inte0nationa1 t0ade in ag0ic81t80e and 2ood Je0e int0od8ced "o11oJing t7e !08g8a6 Ro8nd negotiationsG a11 ag0ic81t80a1 p0od8cts Je0e 50o8g7t 8nde0 m81ti1ate0a1 t0ade 081es 56 t7e WTOAs Ag0eement on Ag0ic81t80e T7e Ag0eement is made 8p o2 t70ee Ipi11a0sAC ma0ket accessG eDpo0t competition and domestic s8ppo0t A11 WTO mem5e0sG eDcept 1east de:e1oped co8nt0ies 3.DCs4G Je0e 0e<8i0ed to make commitments in a11 t7ese a0eas in o0de0 to 1i5e0a1i=e ag0ic81t80a1 t0ade ;oD 1 5e1oJC T7e T70ee Pi11a0s
1545I
Market access
T7e most impo0tant commitments a0eC T De:e1oped and de:e1oping co8nt0ies to con:e0t a11 non9ta0i22 5a00ie0s into simp1e ta0i22s 3a p0ocess knoJn as ta0i22ication334 T De:e1oped co8nt0ies to 0ed8ce impo0t ta0i22s 56 3,L3& 3ac0oss t7e 5oa0d4 o:e0 a siD 6ea0 pe0iod Jit7 a minim8m 1)L ta0i22 0ed8ction 2o0 an6 one p0od8ct T De:e1oping co8nt0ies to 0ed8ce impo0t ta0i22s 56 '&L3) 3ac0oss t7e 5oa0d4 o:e0 a ten 6ea0 pe0iod Jit7 a minim8m 1$L ta0i22 0ed8ction 2o0 an6 one p0od8ct
1545II
E$'ort co 'etition
T7e commitments a0eC T "o0 de:e1oped co8nt0iesG t7e :a18e and :o18me o2 eDpo0t s85sidies to 5e 0ed8ced 56 3,L3 and '&L 0especti:e16 20om t7e 5ase pe0iod 1-+,9 1--$ o:e0 a siD 6ea0 pe0iod
33 3&
Con:e0sion o2 <8otas into compa0a51e ta0i22s JJJ Jto o0g 3) i5id 3 i5id
9 )* 9
T "o0 de:e1oping co8nt0iesG t7e :a18e and :o18me o2 eDpo0t s85sidies to 5e 0ed8ced 56 '&L& and 1$L 0especti:e16 20om t7e 5ase pe0iod 1-+,9 1--$ o:e0 a ten 6ea0 pe0iod
1545III Do estic S%''ort

A11 2o0ms o2 domestic s8ppo0t a0e s85Kect to 081es T7e WTO c1assi2ies domestic s85sidies into t70ee catego0ies knoJn as t7e Am5e0G ;18e and G0een ;oDes On16 t7e Am5e0 ;oD is s85Kect to 0ed8ction commitments as 2o11oJsC T "o0 de:e1oped co8nt0iesG a '$L 0ed8ction in Tota1 AMS 3Am5e0 ;oD4 o:e0 siD 6ea0s commencing 1--) 20om a 5ase pe0iod 1-+,91-++ T "o0 de:e1oping co8nt0iesG a 13L 0ed8ction in Tota1 AMS 3Am5e0 ;oD4 o:e0 ten 6ea0s commencing 1--) 20om a 5ase pe0iod 1-+,91-++
%)
#TO :omestic Su8sidy 0o3es
T7e WTO c1assi2ies s85sidies into t70ee catego0iesC B(; 1 A)6/+ B(;4 a11 domestic s85sidies M s8c7 as ma0ket p0ice s8ppo0t 9 t7at a0e conside0ed to disto0t p0od8ction and t0ade S85sidies in t7is catego06 a0e eDp0essed in te0ms o2 a NTota1 Agg0egate Meas80ement o2 S8ppo0tO 3Tota1 AMS4 J7ic7 inc18des a11 s8ppo0ts in one sing1e 2ig80e Am5e0 ;oD s85sidies a0e s85Kect to WTO 0ed8ction commitments B:7/ B(;C s85sid6 pa6ments t7at a0e di0ect16 1inked to ac0eage o0 anima1 n8m5e0sG 58t 8nde0 sc7emes J7ic7 a1so 1imit p0od8ction 56 imposing p0od8ction <8otas o0 0e<8i0ing 2a0me0s to set9aside pa0t o2 t7ei0 1and T7ese a0e deemed 56 WTO 081es to 5e Ipa0tia116 deco8p1edA 20om p0od8ction and a0e not s85Kect to WTO 0ed8ction commitments In t7e E!G t7e6 a0e common16 knoJn as di0ect pa6ments G+//* B(;4 s85sidies t7at a0e deemed not to disto0t t0adeG o0 at most ca8se minima1 disto0tion and a0e not s85Kect to WTO 0ed8ction commitments "o0 t7e E! and !S one o2 t7e most impo0tant a11oJa51e s85sidies in t7is catego06 is deco8p1ed s8ppo0t paid di0ect16 to p0od8ce0s S8c7 s8ppo0t s7o81d not 0e1ate to c800ent p0od8ction 1e:e1s o0 p0ices It can a1so 5e gi:en on condition t7at no p0od8ction s7a11 5e 0e<8i0ed in o0de0 to 0ecei:e s8c7 pa6ments
%+
&
An uneAua, a&reement 4Ana,ysis6
i5id
9 )+ 9
Since it came into 2o0ceG t7e AoA 7as demonst0ated se:e0a1 Jeaknesses T7ese can 5e catego0i=ed 8nde0 tJo 50oad 7eadings 9 design 0e1ated iss8es and imp1ementation 0e1ated iss8es
1535I
Design related iss%es
".#.I.,
N( +/2(.*-'-(* (9 1-99/+/*2/& -* ,.+-27:'7+,: &0&'/)&
T7e Ag0eement 2ai1s to 0ecogni=e t7e 28ndamenta1 di22e0ences 5etJeen ag0ic81t80a1 s6stems in de:e1oped and de:e1oping co8nt0ies and 8ses a one9si=e 2its9a11 app0oac7 It igno0esG 2o0 eDamp1eG t7e 2act t7at ag0ic81t80e is t7e main so80ce o2 1i:e1i7ood 2o0 t7e maKo0it6 o2 t7e pop81ation in de:e1oping co8nt0ies and t7at t7e secto0 is a maKo0 cont0i58to0 to nationa1 income 3see Ta51e ' 5e1oJ4 W7i1e .DCs a0e eDempt 20om 0ed8ction commitmentsG t7e AoA a22o0ds :e06 1imited specia1 and di22e0entia1 t0eatment 3S?DT4 to de:e1oping co8nt0ies Rat7e0 t7an ens80ing t7e 21eDi5i1it6 to imp1ement t0ade po1icies t7at a0e consistent Jit7 t7ei0 de:e1opment o5Kecti:esG t7ese p0o:isions amo8nt to 1itt1e mo0e t7an p0o:iding additiona1 time to imp1ement ag0eements T7e AoA 2ai1s to disc0iminate 5etJeen t7e di22e0ent needs o2 di:e0se de:e1oping co8nt0ies and p0o:ides no g8a0antee o2 2ood sec80it6 In cont0astG t7e Ja6 s85sidies a0e c1assi2iedG t7e p0o:ision o2 specia1 sa2eg8a0ds 3SSG4 and t7e Peace C1a8seG a11 Jo0k in 2a:o0 o2 p0od8ce0s in de:e1oped co8nt0ies T,6:/ S()/ D/0 1-99/+/*2/& 6/'@//* '5/ ,.+-27:'7+/ &0&'/)& -* 1/3/:(8/1 ,*1 1/3/:(8-*. 2(7*'+-/&.$6 Developed Countries Comme0cia1 EEDpo0t O0iented 3L + 3L &L St0ong #ig7 Developing &including least countries' S85sistence ',L '*L *$L Weak .oJ Countries developed
%arameters Nat80e o2 Ag0ic81t80e S6stem S7a0e o2 GDP Cont0i58tion to 2o0eign eDc7ange Pop81ation engaged in ag0ic81t80e Ma0ket o0ientation Administ0ati:e capacit6
".#.I.6 S76&-1-/&4 6(;-*. -* '5/ A(A

3,
Figures taken from Green, D. and Priyadarshi, S. (2001) Proposal for a 'Development Box' in the WTO Agreement on Agriculture, CAFOD and South Centre, October and Kaukab, R., (2002) Presentation at Agriculture and WTO Seminar, Ministry of Commerce, Government of Pakistan, Islamabad, August 2002
9 )- 9
T7e0e a0e a n8m5e0 o2 eDceptions to t7e domestic s85sid6 0ed8ction commitments o8t1ined a5o:e T7e 2i0st eDception is contained in t7e ;18e ;oD D80ing t7e !08g8a6 0o8ndG t7e E! and ot7e0 de:e1oped co8nt0ies a0g8ed t7at 0ed8ctions in Am5e0 ;oD s85sidies Jo81d 7a:e a det0imenta1 impact on 2a0me0s ;18e ;oD s85sidies Je0e int0od8ced to o22set t7is impact On t7e g0o8nds t7at s8pposed16 t7e6 a0e on16 pa0tia116 1inked to p0od8ctionG t7e6 a0e eDempt 20om 0ed8ction commitments 3A0tic1e , )4 T7e second eDception is t7e de9minimis 1e:e1 o2 s8ppo0t 3A0tic1e , &4 "o0 de:e1oped co8nt0ies t7is eDempts ma0ket p0ice s8ppo0t i2G in an6 6ea0G t7e agg0egate :a18e o2 t7is s8ppo0t does not eDceed )L o2 t7e tota1 :a18e o2 t7e p0od8ction o2 t7at p0od8ct It a1so eDempts non9p0od8ct speci2ic domestic s8ppo0tG s8c7 as inp8t s85sidiesG i2 t7ei0 :a18e is 1ess t7an )L o2 t7e :a18e o2 tota1 ag0ic81t80a1 p0od8ction "o0 de:e1oping co8nt0iesG t7e de9 minimis 1e:e1 is 1$L T7e t7i0d eDception 3A0tic1e , '4 conce0ns s85sidies 2o0 de:e1opment p80poses in de:e1oping co8nt0ies T7ese a0e meas80es o2 assistanceG J7et7e0 di0ect o0 indi0ectG designed to enco80age ag0ic81t80a1 and 080a1 de:e1opment T7e 2o80t7 eDception 3AnneD '4 is contained in t7e G0een ;oD T7is a11oJs s85sidies t7at a0e deemed to 7a:e noG o0 at most minima1G t0ade9disto0ting e22ects !n2o0t8nate16G gi:en t7ei0 comp1eD administ0ati:e 0e<8i0ements and t7e 2act t7at 2eJ de:e1oping co8nt0ies 7a:e t7e 2inancia1 0eso80ces to p0o:ide 1a0ge s85sidiesG it is p0od8ce0s in de:e1oped co8nt0ies t7at gain most 20om t7ese eDceptions
".#.I.2
S8/2-,: &,9/.7,+1& <SSG=
T7e specia1 sa2eg8a0d 3SSG4 p0o:ision Jas int0od8ced to a11oJ co8nt0ies to impose additiona1 d8ties in o0de0 to p0otect t7em 20om s8dden impo0t s80ges in te0ms o2 :o18mes o0 1oJ p0ices #oJe:e0G in o0de0 to <8a1i26 2o0 SSGG co8nt0ies 7ad to 7a:e non9ta0i22 5a00ie0s 3<8antitati:e 0est0ictions on impo0ts4 in p1ace at t7e time ta0i22ication took p1ace 8nde0 t7e !08g8a6 Ro8nd On16 '' de:e1oping co8nt0ies 7ad non9ta0i22 5a00ie0s t7at ena51ed t7em to <8a1i26 In cont0astG 1, de:e1oped and easte0n E80opean co8nt0ies <8a1i2ied It is pe0tinent to note t7at o8t o2 t7e tota1 n8m5e0 o2 SSG p0od8cts 3,$*'4 t7at a0e a:ai1a51e to a11 3+ co8nt0iesQ on16 31 + L p0od8cts 31-3$4 a0e a:ai1a51e to de:e1oping co8nt0ies as against ,+ ' L 3&1&'4 to de:e1oped co8nt0ies O2 t7eseG t7e E! can 8se SSG against )3- p0od8ctsG t7e !S against 1+- p0od8ctsG Canada against 1)$ p0od8ctsG A8st0a1ia against 1$ p0od8cts and SJit=e01and against an asto8nding -,1 p0od8cts
1535II
I 'le entation related iss%es
9 ,$ 9
Design 0e1ated iss8es 7a:e 0es81ted in t7e 8n2ai0 imp1ementation o2 t7e AoA De:e1oped co8nt0ies contin8e to s85sidi=e t7ei0 ag0ic81t80e and 2ood eDpo0ts :e06 7ea:i16 J7i1e sim81taneo8s16 p0otecting t7ei0 p0od8ce0s 56 manip81ating ta0i22s and emp1o6ing ta0i22 peaks and ta0i22 esca1ation
".#.II., N( +/172'-(* -* &76&-1-/&

Since t7e AoA came into e22ectG de:e1oped co8nt0ies in t7e ea016 1--$s 7a:e 5een K8gg1ing t7e Ja6 t7at s85sidies a0e p0o:ided in o0de0 to a:oid 0ed8ction commitments T7e E! 7as p0og0essi:e16 mo:ed domestic s85sidies 20om t7e Am5e0 ;oD to t7e ;18e and G0een ;oDes As can 5e seen in Ta51e 3 5e1oJG t7e maKo0it6 o2 !S s85sidies a10ead6 2a11 8nde0 G0een ;oD p0o:isions T7e net 0es81t o2 t0ans2e00ing s85sidies into di22e0ent ;oDes is t7at 5etJeen 1--- and '$$1G de:e1oped co8nt0iesA s8ppo0t to ag0ic81t80e Jas some -L 7ig7e0 in nomina1 te0ms t7an d80ing 1-+,9++ T,6:/ $ S76&-10 :/3/:& 9(+ &/:/2'/1 2(7*'+-/& <I )-::-(*&=$# %ea0 E! AMS ;18e ;oD 1-*+* $ +1* $ $ $ G0een ;oD 1--', &-*&'3G,$1 '-+ *) ) De EDpo0t Minimis S85sidies 3$+ )-,+ *&3) '-$ -& -+ $ 1&* 9 9 9 9
1---E$$ &*+*&3,-&&, 4 !SA 1--1,+,'31-+-4 @APAN 1--,)*'33,G3)-4 ;RAHI. -*E-+ *& 3+-34 INDIA -*E-+ $ 3$4 PAKISTAN --E'$$$ $3$4
"ig80es in 50ackets indicate 5o8nd 1e:e1s
".#.II.6 A.+//)/*' (* S,*-',+0 ,*1 P50'(&,*-',+0 M/,&7+/&

T7is ag0eement conce0ns t7e app1ication o2 sanita06 and p76tosanita06 meas80es 9 in ot7e0 Jo0ds 2ood sa2et6 and anima1 and p1ant 7ea1t7 0eg81ations T7e ag0eement 0ecognises t7at go:e0nments 7a:e t7e 0ig7t to take sanita06 and p76tosanita06 meas80es 58t t7at t7e6 s7o81d 5e app1ied on16 to t7e eDtent necessa06 to p0otect 78manG anima1 o0 p1ant 1i2e o0 7ea1t7 and s7o81d not a05it0a0i16 o0 8nK8sti2ia516 disc0iminate 5etJeen Mem5e0s J7e0e identica1 o0 simi1a0 conditions p0e:ai1 In o0de0 to 7a0moni=e sanita06 and p76tosanita06 meas80es on as Jide a 5asis as possi51eG Mem5e0s a0e enco80aged to 5ase t7ei0 meas80es on inte0nationa1 standa0dsG g8ide1ines and 0ecommendations J7e0e t7e6 eDist #oJe:e0G Mem5e0s ma6 maintain o0 int0od8ce meas80es J7ic7 0es81t in 7ig7e0 standa0ds i2 t7e0e is scienti2ic K8sti2ication o0 as a
3*
See Soren, F., Jensen, K., Lind, P., Melgaard, P. and Yu, W. (2003) Note on the Harbinson Draft on Modalities in the WTO Agriculture Negotiations. Agricultural Policy Research Division, Danish Research Institute of Food Economics, 11th March. Fredericksberg, Denmark
9 ,1 9
conse<8ence o2 consistent 0isk decisions 5ased on an app0op0iate 0isk assessment T7e Ag0eement spe11s o8t p0oced80es and c0ite0ia 2o0 t7e assessment o2 0isk and t7e dete0mination o2 app0op0iate 1e:e1s o2 sanita06 o0 p76tosanita06 p0otection
".#.II.2 T/25*-2,: B,++-/+& '( T+,1/ <TBT= A.+//)/*'

T7e T;T Ag0eement co:e0s tec7nica1 0eg81ationsG standa0ds and con2o0mit6 assessment p0oced80es Tec7nica1 0eg81ations a0e mandato06 0e<8i0ements o2 go:e0nments designed to 2812i11 ce0tain 1egitimate o5Kecti:es T7e T;T Ag0eement p0o:ides an open9ended 1ist o2 s8c7 1egitimate o5Kecti:esG J7ic7 inc18de t7e p0e:ention o2 decepti:e p0acticesG p0otection o2 78man and anima1 7ea1t7G and p0otection o2 t7e en:i0onment T7e aim o2 t7e T;T Ag0eement is to ens80e t7at tec7nica1 0e<8i0ementsG inc18ding packagingG ma0keting and 1a5e1ing 0e<8i0ementsG and p0oced80es 2o0 assessment o2 con2o0mit6 Jit7 tec7nica1 0eg81ations and standa0ds do not in t7emse1:es c0eate 8nnecessa06 o5stac1es to inte0nationa1 t0ade T7e T;T Ag0eement 7as 2i:e main p0incip1esG name16C V Non disc0imination V #a0moni=ation V A:oidance o2 8nnecessa06 o5stac1es to t0ade V E<8i:a1ence o2 tec7nica1 0e<8i0ements and V T0anspa0enc6
".#.II.1 T+,1/ R/:,'/1 I*'/::/2'7,: P+(8/+'0 R-.5'&

T7e 0ig7ts o2 c0eato0s o2 inno:ati:e o0 a0tistic Jo0k a0e knoJn as inte11ect8a1 p0ope0t6 0ig7ts T7e6 inc18de cop60ig7t 3 J7ic7 p0otects t7e 0ig7ts o2 a8t7o0s o2 5ooks and ot7e0 a0tistic c0eations4G patents 3 J7ic7 p0otect t7e 0ig7ts o2 in:esto0s4 and ind8st0ia1 designs 3J7ic7 p0otect 0ig7ts to o0namenta1 designs4 T7e6 a1so co:e0 t0adema0ks and ot7e0 signs t7at t0ade0s 8se to disting8is7 t7ei0 p0od8cts 20om t7ose o2 ot7e0s T7e Ag0eement on T0ade9Re1ated Aspects o2 Inte11ect8a1 P0ope0t6 o51iged WTO Mem5e0s to p0o:ide minim8m standa0ds o2 p0otection T7ese inc18ded 8ni2o0m pe0iods 2o0 patent and cop60ig7t p0otectionG p0o:isions o2 p0otection 2o0 5ot7 p0od8ctsG and t7e p0ocesses in:o1:ed in man82act80ing t7ese p0od8ctsG p0otection o2 geog0ap7ica1 indications etc T7e common e1ement in t7e p0o:isions o2 t7e TRIPS Ag0eement is t7at p0otection a:ai1a51e 8nde0 :a0io8s inte0nationa1 ag0eements 7as 5een codi2ied in t7e one ag0eementG in ce0tain cases t7is p0otection 7as 5een st0engt7ened 3especia116 in t7e a0eas o2 patents4G and most impo0tant16G inte11ect8a1 p0ope0t6 0ig7ts a0e s85Kect to t7e WTO disp8te sett1ement mec7anism
%-
The :oha A&enda
At t7e "o80t7 Ministe0ia1 Con2e0ence in Do7aG (ata0G in No:em5e0 '$$1 WTO mem5e0 go:e0nments ag0eed to 1a8nc7 neJ negotiations T7e6 a1so ag0eed to Jo0k on ot7e0
9 ,' 9
iss8esG in pa0tic81a0 t7e imp1ementation o2 t7e p0esent ag0eements T7e enti0e package is ca11ed t7e Do7a De:e1opment Agenda 3DDA4 Negotiations on ag0ic81t80e 5egan in ea016 '$$$G 8nde0 A0tic1e '$ o2 t7e WTO Ag0ic81t80e Ag0eement ;6 No:em5e0 '$$1 and t7e Do7a Ministe0ia1 Con2e0enceG 1'1 go:e0nments 7ad s85mitted a 1a0ge n8m5e0 o2 negotiating p0oposa1s T7ese negotiations 7a:e contin8edG 58t noJ Jit7 Dec1a0ationG J7ic7 a1so inc18des a se0ies o2 dead1ines a10ead6 8nde0takenG con2i0ms and e1a5o0ates t7e Ag0ic81t80e is noJ pa0t o2 t7e sing1e 8nde0taking negotiations a0e to end 56 1 @an8a06 '$$) t7e mandate gi:en 56 t7e Do7a T7e dec1a0ation 58i1ds on t7e Jo0k o5Kecti:esG and sets a timeta51e in J7ic7 :i0t8a116 a11 t7e 1inked
T7e dec1a0ation 0econ2i0ms t7e 1ong9te0m o5Kecti:e a10ead6 ag0eed in t7e p0esent WTO Ag0eementC to esta51is7 a 2ai0 and ma0ket9o0iented t0ading s6stem t70o8g7 a p0og0amme o2 28ndamenta1 0e2o0m T7e p0og0amme encompasses st0engt7ened 081esG and speci2ic commitments on go:e0nment s8ppo0t and p0otection 2o0 ag0ic81t80e T7e p80pose is to co00ect and p0e:ent 0est0ictions and disto0tions in Jo01d ag0ic81t80a1 ma0kets Wit7o8t p0eK8dging t7e o8tcomeG mem5e0 go:e0nments commit t7emse1:es to comp0e7ensi:e negotiations aimed atC ma0ket accessC s85stantia1 0ed8ctions eDpo0ts s85sidiesC 0ed8ctions o2G Jit7 a :ieJ to p7asing o8tG a11 2o0ms o2 t7ese domestic s8ppo0tC s85stantia1 0ed8ctions 2o0 s8ppo0ts t7at disto0t t0ade T7e dec1a0ation makes specia1 and di22e0entia1 t0eatment 2o0 de:e1oping co8nt0ies integ0a1 t70o8g7o8t t7e negotiationsG 5ot7 in co8nt0iesA neJ commitments and in an6 0e1e:ant neJ o0 0e:ised 081es and discip1ines It sa6s t7e o8tcome s7o81d 5e e22ecti:e in p0actice and s7o81d ena51e de:e1oping co8nt0ies to meet t7ei0 needsG in pa0tic81a0 in 2ood sec80it6 and 080a1 de:e1opment T7e ministe0s a1so take note o2 t7e non9t0ade conce0ns 3s8c7 as en:i0onmenta1 p0otectionG 2ood sec80it6G 080a1 de:e1opmentG etc4 0e21ected in t7e negotiating p0oposa1s a10ead6 s85mitted T7e6 con2i0m t7at t7e negotiations Ji11 take t7ese into acco8ntG as p0o:ided 2o0 in t7e Ag0ic81t80e Ag0eement
1505I
Sanitar! and '"!tosanitar! 8S<S9
eas%res
Mo0e time 2o0 de:e1oping co8nt0ies to comp16 Jit7 ot7e0 co8nt0iesA neJ SPS meas80es NReasona51e inte0:a1O 5etJeen p851ication o2 a co8nt06As neJ SPS meas80e and its ent06 into 2o0ce E<8i:a1enceC p8tting into p0actice t7e p0incip1e t7at go:e0nment s7o81d accept t7at di22e0ent meas80es 8sed 56 ot7e0 go:e0nments can 5e e<8i:a1ent to t7ei0 oJn
9 ,3 9
meas80es 2o0 p0o:iding t7e same 1e:e1 o2 7ea1t7 p0otection 2o0 2oodG anima1s and p1ants Re:ieJ o2 t7e SPS Ag0eement De:e1oping co8nt0iesA pa0ticipation in setting inte0nationa1 SPS standa0ds "inancia1 and tec7nica1 assistance
4.9
The July Package and Agriculture
A2te0 p0ot0acted negotiationsG t7e Gene0a1 Co8nci1 o2 t7e WTO adopted a decision knoJn as t7e @816 Package on t7e 31st @816 '$$& T7e ag0eed package 2oc8ses on 2i:e a0eas o2 t7e Do7a Dec1a0ationG name16G ag0ic81t80eG non9ag0ic81t80a1 ma0ket access 3NAMA o0 ind8st0ia1 access ma0ket4G de:e1opment iss8esG t0ade 2aci1itation and se0:ices T7e 20ameJo0k 2o0 28t80e ag0ic81t80e negotiationsG adopted as a sepa0ate AnneDG Jas Jide16 seen as t7e main 50eakt70o8g7 T7e G0o8p o2 "i:e Inte0ested Pa0ties 3"IPs4 t7at comp0ises t7e !SG E!G ;0a=i1G India and A8st0a1iaG p1a6ed a 1eading 0o1e and e:ent8a116 ag0eed on a teDt t7at 2o0med t7e 5asis 2o0 t7e 2ina1 ag0eement Mem5e0s a1so ag0eed to make disc8ssions on t7e secto0a1 initiati:e on cotton an integ0a1 pa0t o2 t7e ag0ic81t80e negotiations 0at7e0 t7an t0eating t7e iss8e on a sepa0ate t0ack AnneD A on ag0ic81t80e simp16 1a6s doJn t7e 5asic pi11a0s 3ma0ket accessG domestic s8ppo0t and eDpo0t competition4 and a 20ameJo0k 2o0 cond8cting 28t80e ta1ks Negotiations on moda1ities o2 s85stanceG m8c7 o2 J7ic7 7as 5een 1e2t 8ndete0minedG Ji11 5e a 0ea1 c7a11enge t7at Mem5e0 States 7a:e 6et to con20ont On Ma0ket AccessG t7e 1ang8age o2 t7e Decision 0e:ea1s s1ig7t16 mo0e 21eDi5i1it6 and st0onge0 1ang8age in 2a:o80 o2 de:e1oping co8nt0ies J7en compa0ed to ea01ie0 teDts T7e teDt 0etains t7e tie0ed 2o0m81a J7ic7 c1assi2ies ta0i22s into :a0io8s 5ands 2o0 s85se<8ent 0ed8ction 20om 5o8nd 0atesG t7e 7ig7e0 ta0i22s 5eing c8t mo0e t7an 1oJe0 ones T7e act8a1 moda1ities 0emain s85Kect to negotiation T7e 1ang8age on16 :ag8e16 p0o:ides 2o0 Ws85stantia1 imp0o:ement in ma0ket accessW 2o0 a11 p0od8ctsG mentioning t7at Ws85stantia1 o:e0a11 ta0i22 0ed8ctions Ji11 5e ac7ie:ed as a 2ina1 0es81t 20om negotiationsW A1t7o8g7 impo0tant comp0omises Je0e ac7ie:ed 0ega0ding sensiti:e p0od8cts 3mo0e 5ene2icia1 2o0 de:e1oped co8nt0ies4 and specia1 p0od8cts 3mo0e 5ene2icia1 2o0 de:e1oping co8nt0ies4G m8c7 7as 6et to 5e dete0mined T7e Do7a Dec1a0ation ca11ed 2o0 Ws85stantia1 0ed8ctions in t0ade9disto0ting domestic s8ppo0tW T7e AnneD teDt accommodates 5ot7 de:e1oped and de:e1oping co8nt06 inte0estsG pa0tic81a016 Jit7 0ega0d to ;18e ;oD and t7e Ude9minimisU pa6ments o2 t7e Am5e0 ;oDG maKo0 sticking points in t7e negotiations T7e teDt inc18des conc0ete ta0getsG at 1east 2o0 o:e0a11 domestic s8ppo0t 0ed8ction and a cap 2o0 pe0mitted ;18e ;oD 1e:e1s .ang8age on G0een ;oD 3deco8p1ed s85sidies4 0emains 1a0ge16 8nc7anged 20om p0e:io8s negotiationsG on16 0e<8i0ing a mo0e t0anspa0ent p0ocess 2o0 designating g0een 5oD s85sidies O2 pa0tic81a0 inte0est is t7at nationa1 Ns8ppo0t 2o0 s85sistence and 0eso80ce9poo0 2a0me0sO is 0ecogni=ed as 5eing impo0tant T7e Do7a Dec1a0ation ca11ed 2o0 W0ed8ction o2G Jit7 a :ieJ to p7asing o8tG a11 2o0ms o2 eDpo0t s85sidiesW T7e AnneD p0o:ides 2o0 signi2icant16 st0onge0 1ang8age on EDpo0t
9 ,& 9
Competition in 2a:o80 o2 de:e1oping co8nt0ies In addition to p0o:iding 2o0 a Wc0edi51e end9dateW3a1t7o8g7 6et to 5e ag0eed 8pon4 2o0 t7e e1imination o2 eDpo0t s85sidiesG it a1so inc18des Jit7in its am5it eDpo0t c0edits and c0edit g8a0antees o0 ins80ance p0og0ammes
% 19 0rief Re1ie2 of A&ricu,ture Sector of Pa/istan

Ag0ic81t80e is a maKo0 economic acti:it6 in Pakistan It emp1o6s 7a12 t7e co8nt06As 1a5o80 2o0ce and gene0ates nea016 a 2o80t7 o2 t7e g0oss nationa1 p0od8ct So 2a0 t7e ag0ic81t80a1 st0ateg6 o2 a Pakistan 7as s8ccess28116 met t7e 2ood 0e<8i0ements o2 a 0apid16 g0oJing pop81ation and 7as p1a6ed a pi:ota1 0o1e in ea0ning 2o0eign eDc7ange t70o8g7 t7e eDpo0t o2 0ice and cotton C0op p0od8ction is Je11 di:e0si2iedG Jit7 mo0e t7an 7a12 t7e a0ea de:oted to ce0ea1sG one 2i2t7 to cas7 c0opsG and t7e 0est to 2odde0G p81sesG :egeta51es and 208its O2 '' mi11ion 7ecta0es o2 c81ti:a51e 1andG 1+ mi11ion a0e i00igated and & mi11ion a0e 0ain 2edG a1most ,$ pe0cent o2 t7is 1and is 2o8nd in t7e P8nKa5 and a5o8t 3$ pe0cent in t7e Sind7 T7e i00igated p1ains a0e 8sed main16 2o0 t7e p0od8ction o2 cottonG 0iceG and s8ga0caneG J7i1e J7eat is t7e main c0op in t7e 0ain92ed a0eas MiDed c0op91i:estock 2a0ming dominates ag0ic81t80e in most mo8ntain 0egions .i:estock a0e o2 conside0a51e economic impo0tanceG acco8nting 2o0 a1most 3$ pe0cent o2 ag0ic81t80a1 GDP and mo0e t7an 1$ pe0cent o2 t7e co8nt06As 2o0eign eDc7ange ea0nings RaJ cottonG cotton JasteG 0ice and 208it acco8nt 2o0 0o8g716 -&L o2 tota1 ag0ic81t80e eDpo0ts Agriculture(s contri ution in %a)istan(s economy %ea0 Emp1o6ment GDP s7a0e s7a0e3Rs4 3L4 mi11ion &+ * &'$+ 3* , '+ * ', 1 '3 3 NEA ,$ )* )3 &+ &' Tota1 Di0ect EDpo0t 3Rs4 Ag0ic81t80e mi11ion eDpo0ts 3Rs4 mi11ion -'' )&3 33*1 ','*$ 1*1*'+ *$$$$$ +1+ 3)1 , 13+) *-*& 33')1 ,$$$$ Indi0ect Ag0ic81t80e eDpo0ts 3Rs4 mi11ion NEA &3 * 1'-1$$*3 '1$3'* )31$$$
1-)1E' 1-,1E,' 1-*1E' 1-+1E' 1--1E' '$$3E&
So80ceC "ede0a1 ;80ea8 o2 Statistics
9 ,) 9
SHARE O6 AARIC@L*@RE I7 <A?IS*A7 ECO7OMY

%ther ind3stries 1Man3,act3rin" 18A"ric3 t3re 23-
Ser!ices 52Source7 /conomic Survey 200.'01
% 11 Pa/istan<s Current performance and future ReAuirements for the ma;or E3port CropsBProducts 315&&5I Cotton
Cotton Jit7 Jo01dJide s7a0e o2 1 L 3- is maKo0 eDpo0t o2 Pakistan Tota1 eDpo0t o2 cotton 218ct8ated ma0ked16 20om 6ea0 to 6ea0 in 5ot7 t7e p0e9!R and post9!R pe0iods ;etJeen 1-+* to '$$&G a:e0age ann8a1 cotton eDpo0ts 2e11 20om '*$ mi11ion do11a0s to 1$$ mi11ion do11a0s T7is dec1ine Jas d8e to domestic 0easons s8c7 as pest attack 31ea2 c801 :i08s4 and not d8e to ma0ket access IndeedG a58ndant 1and a:ai1a5i1it6G 2a:o80a51e c1imate and 1oJ 1a5o80 costs ena51e Pakistan to 5e t7e t7i0d 1oJest cost p0od8ce0 o2 cotton Acco0ding16G t7e p0ospect 2o0 g0oJt7 in t7is is p0omising #oJe:e0G Je need to inc0ease p0od8cti:it6G since o80 c800ent capacit6 is 1$ mi11ion 5a1es ann8a116 J7e0eas teDti1e secto0 and ot7e0 cons8mption 0e<8i0e p0od8ction o2 a5o8t 1' to 1) mi11ion 5a1es ann8a116 Cotton <8a1it6 a1so needs to 5e imp0o:ed to 5e a51e to compete in t7e inte0nationa1 ma0ket J7e0e t7e standa0ds a0e going to 5e most c08cia1 in 28t80e t0ade
15&&5II Rice
Rice is t7e maKo0 t0aditiona1 eDpo0t o2 PakistanG Jit7 a Jo01dJide s7a0e o2 -L &$ Pakistan p0od8ces tJo t6pes o2 0ice :a0ietiesG and 5ot7 a0e eDpo0ted ;asmati 0ice 7as its t0aditiona1 ma0ketG 58t it 2aces some competition Jit7 Indian 5asmati 0ice T7e eDpo0t o2 coa0se 0ice 2aces competition 20om ot7e0 1oJ9p0iced competiti:e co8nt0ies ;8t it is sti11 eDpo0ted to Asian and A20ican co8nt0ies Tota1 0ice eDpo0ts 7a:e inc0eased 56 +$L 20om 1-+* to '$$& 20om '&$ to &3' mi11ion do11a0s #oJe:e0G eDpo0ts to ind8st0ia1i=ed co8nt0ies 7a:e not inc0eased oJing to 1ack o2 imp0o:ement in ma0ket access J7e0e SPS and TRIPS iss8es 8nde0mine o80 a5i1it6 to penet0ate t7ese ma0kets E22o0ts a0e 0e<8i0ed to
3+ 3-
Economic S80:e6 '$$39$& i5id &$ i5id
9 ,, 9
meet t7ese standa0ds Recent16 it 7as 5een 0epo0ted t7at E! Ji11 a11oJ Pakistani ;asmati S8pe0 :a0iet6 to 5e impo0ted on condition o2 DNA testing
15&&5III 6r%its and Vegetables

EDpo0ts o2 208its and :egeta51es 7a:e inc0eased 56 *$L since t7e 1ast !08g8a6 Ro8nd 31--) onJa0ds4 20om 3- to ,, mi11ion do11a0s &1 #oJe:e0G man6 o2 de:e1oped co8nt0ies 7a:e SPS standa0ds t7at Pakistani p0od8cts do not meet T7ese SPS and T;T meas80es t70eaten 28t80e a5i1it6 to contin8e t7e inc0ease in o80 eDpo0ts Acco0ding16G Je need to take meas80es to meet t7ese standa0ds at t7e ea01iest
15&&5IV Ot"er Ite s

Ot7e0 ag0ic81t80e items t7at Pakistan can 2oc8s 2o0 eDpo0ts inc18de 1eat7e0G meatG and mi1kE mi1k p0od8cts W7eat can a1so 5ecome eDpo0ta51e item p0o:ided o80 ag0ic81t80e secto0 can inc0ease o8tp8t T7is in t80n Ji11 depend on J7et7e0 Je a11oJ 2a0me0s to get ma0ket p0ices o0 not
15&&5V I 'ortsH
Despite 5eing an ag0ic81t80a1 co8nt06G Pakistan 7as 7ad to impo0t a 78ge amo8nt o2 2oodst822 e:e06 6ea0 Its impo0t 5i11 7as inc0eased in t7e post9!R pe0iod ;eca8se o2 its pe0sistent dependence on t7e impo0t o2 essentia1 items Pakistan 7as 5een c1assi2ied 56 t7e WTO as a net 2ood impo0ting de:e1oping co8nt06 Edi51e oi1 and J7eat a0e t7e tJo 1a0gest impo0ted p0od8cts in Pakistan 2o11oJing teaG s8ga0G p81ses and mi1k
% 1! PACISTANDS COMMITMENTS AN: COMP@IANCE REGAR:ING AoAE SPSE T0T AN: TRIPS
15&+5I Agree ent on Agric%lt%re

Pakistan 7as made 2o11oJing commitments in :a0io8s a0eas 0e1ating AoA As 2a0 as ta00i2ication and 0ed8ction and 5inding o2 ta0i22s a0e conce0nedG Pakistan Jas not 8nde0 an6 0ed8ction commitments in ta0i22s and Jas on16 0e<8i0ed to 5ind its ta0i22s at a cei1ing 1e:e1 It 7as 5o8nd its ta0i22s 2o0 ag0ic81t80a1 p0od8cts at 1$$91)$ pe0cent 1e:e1 In case o2 se0io8s di22ic81ties 2aced 56 an6 mem5e0 pe0taining to s8dden 0ise in impo0t :o18mes o0 in case o2 2a11ing p0ices o2 a ce0tain impo0t o2 ag0ic81t80e p0od8ctG a specia1 ag0ic81t80e sa2eg8a0d co81d 5e app1ied to ce0tain p0od8cts ;8t Pakistan 7as not 0ese0:ed an6 SSG 3specia1 ag0ic81t80e sa2eg8a0d4 2o0 it
&1
O22icia1 WTO siteC JJJ Jto o0g
9 ,* 9
Pe0taining to domestic s8ppo0t in t7e 2o0m o2 :a0io8s s85sidiesG Pakistan dec1a0ed no am5e0 5oD domestic s8ppo0t d80ing t7e 5ase pe0iod and 7ence is not 8nde0 an6 0ed8ction commitments ;8t it can 8se t7is s8ppo0t on16 8pto de minimis 1e:e1 Pakistan did not p0o:ide an6 eDpo0t s85sidies d80ing 5ase pe0iod and 7ence did not make an6 0ed8ction commitments D8e to t7is 0eason Pakistan cannot p0o:ide an6 eDpo0t s85sid6 noJ
15&+5II *ECH7ICAL ;ARRIERS *O *RADE8*;*9

T7e0e is no o51igato06 0e<8i0ement 2o0 speci2ic 1egis1ation T7e ag0eement 0e<8i0es t7at Mem5e0sA cent0a1 go:e0nment standa0di=ation 5odies accept and comp16 Jit7 t7e Code o2 Good P0acticesG 2o0 t7e p0epa0ation Gadoption and app1ication o2 standa0ds Pakistan Standa0ds Instit8te 3noJ Pakistan Standa0ds and (8a1it6 Cont0o1 A8t7o0it647as accepted t7is code Simi1a016 en<8i06 points 7a:e 5een noti2ied
15&+5III *RADE RELA*ED AS<EC*S O6 I7*ELLEC*@AL <RO<ER*Y RIAH*S 8*RI<S9

"i:e 1aJs E amendments 7a:e 5een p0om81gated to p0o:ide inte11ect8a1 p0ope0t6 p0otection 8nde0 TRIPS standa0ds Patents O0dinanceG '$$$ is t7e 2i0st 1egis1ation in t7is 1istG J7ic7 p0o:ides 2o0 t7e p0otection to p0ocesses as Je11 as p0od8cts 2o0 tJent6 6ea0s T7e Minist06 o2 "ood and Ag0ic81t80e is p0esent16 in:o1:ed in t7e p0epa0ation and :etting o2 a 1aJ J7ic7 Jo81d p0o:ide 2o0 a s8i9gene0is s6stem o2 p0otection o2 p1ant :a0ieties in o0de0 to comp16 Jit7 a0tic1e '* 3 5 o2 t7e TRIPs ag0eement Second 1egis1ation in t7is conce0n is T0adema0k O0dinance '$$1G J7ic7 cate0s 2o0 domestic 0e<8i0ements and inte0nationa1 o51igation It p0otects t7e inte0est o2 t0adema0k oJne0s and gi:es a 1ega1 20ameJo0k 2o0 its en2o0cement It a1so add0esses neJ a0eas 1ike se0:ice ma0kG domain namesG co11ecti:e ma0ksG ce0ti2ication ma0ks G Je11 knoJn ma0ks and geog0ap7ica1 indications
15&+5IV AAREEME7* O7 SA7I*ARY A7D <HY*OSA7I*ARY MEAS@RES 8S<S9

T7e mem5e0s Je0e 0e<8i0ed to noti26 to t7e WTO en<8i06 points and noti26ing a8t7o0it6 2o0 SPS meas80es Pakistan 7as noti2ied MIN"A. 3Minist06 2o0 2oodG 1i:estock and ag0ic81t80e4 and t7ei0 0e1e:ant 1ine depa0tments as t7ese points T7e0e is no pa0tic81a0 o51igation o2 1egis1ationQ 7oJe:e0 i2 Je c7ange o80 1aJs and 0eg81ations in t7is a0ea t7ose Jo81d 7a:e to 5e noti2ied
9 ,+ 9
MIN"A. is in t7e p0ocess o2 0e:ising and st0engt7ening eDisting 1aJs pe0taining to <8a0antineG p1ant p0otection etc I2 Je take ce0tain SPS meas80es 2o0 an6 impo0ts t7en t7is 7as to 5e noti2ied acco0ding16
".1 .IV.,
1 ' 3 & ) , * +
<roble s in Meeting S<S ReJ%ire ents in E$'orting Agric%lt%ral and 6ood <rod%cts #ro <akistan"
Ins822icient access to scienti2icEtec7nica1 eDpe0tise Incompati5i1it6 o2 SPS 0e<8i0ements Jit7 domestic p0od8ctionEma0keting c7anne1s Poo0 access to 2inancia1 0eso80ces Ins822icient time pe0mitted 2o0 comp1iance .imitations in administ0ati:e a00angements 2o0 SPS 0e<8i0ements Poo0 aJa0eness o2 SPS 0e<8i0ements amongst go:e0nment o22icia1s Poo0 aJa0eness o2 SPS 0e<8i0ements Jit7in ag0ic81t80e and 2ood ind8st06 Poo0 access to in2o0mation on SPS 0e<8i0ements
% 13 Impact on Pa/istan
T7e o:e0a11 0es81t o2 ag0ic81t80a1 1i5e0a1i=ation and imp1ementation o2 t7e AoA is not positi:e 2o0 t7e de:e1oping co8nt0ies A1t7o8g7G 1i5e0a1i=ation o2 t0ade in ag0ic81t80e 8nde0 t7e !08g8a6 Ro8nd is estimated to p0od8ce a possi51e net Je12a0e gains 2o0 t7e 1oJ income Asian 0egion in t7e amo8nt o2 S1 3 5i11ionG t7e 0egion 0emains a net impo0te0 o2 2ood a2te0 t7e !08g8a6 Ro8nd 1i5e0a1i=ation W7i1e t7e0e Jas 1itt1e c7ange in t7e :o18me eDpo0tedG in t7e post !R pe0iod in ag0ic81t80a1 eDpo0tsG 2ood impo0ts Je0e 0ising 0apid16 in most cases T7ese co8nt0ies Je0e not a51e to 0aise t7ei0 eDpo0ts d8eG amongst ot7e0 2acto0sG to s8pp16 side const0aintsG t78s dete0io0ating 5a1ance o2 pa6ment sit8ation W7i1e t7e concent0ation o2 2a0ms 1ed to an inc0eased p0od8cti:it6 and competiti:enessG in t7e a5sence o2 sa2et6 netsG t7is p0ocess 7as ma0gina1i=ed sma11 2a0me0s and 7as added to 8nemp1o6ment and po:e0t6 T7e !R negotiations did 0es81t in some 1i5e0a1i=ation 2o0 non9t0aditiona1 p0od8cts Ta0i22sG in t7e de:e1oped ma0ketsG Je0e 0ed8ced 56 3,L &3 on 208its and :egeta51es and 56 &+L on 21oJe0s and ot7e0 ag0ic81t80a1 p0od8cts 3&&L in E80ope4 Pakistan needs to di:e0si26 its eDpo0ts o2 ag0ic81t80e 56 eDpo0ting s8c7 7o0tic81t80a1E21o0ic81t80a1 p0od8cts to t7ese ma0kets #oJe:e0 to take 2811 ad:antage o2 t7ese potentia1 oppo0t8nitiesG Pakistan 0e<8i0es to int0od8ce po1icies to 280t7e0 att0act in:estment in packing and ma0keting 2aci1ities and in t0anspo0tation o2 t7ese p0od8cts T7e a0ea 7as 5een gi:en specia1 attention in t7e '$$$9$1T0ade po1ic6 and man6 incenti:es 7a:e 5een anno8nced aimed at ma0ket penet0ation and p0od8ct 8p9g0adation T7e 0es81t o2 t7e AoA on 0ice and J7eat Je0e conside0ed to 7a:e miDed e22ects on Pakistan T7e ag0eement to 0ed8ce s85sidies on 0ice and cotton maintained 56 t7e !SG t7e
&' &3
So80ceC WTO '$$3 i5id
9 ,- 9
E! @apan and Ko0ea co81d 0es81t in inc0eased ma0ket access 2o0 PakistanAs eDpo0ts #oJe:e0G Pakistan Jo81d 7a:e to sJitc7 p0od8ction to 0ice :a0ieties pop81a0 in So8t7east AsiaG as t7e6 a0e c800ent16 not p0od8ced in Pakistan In case o2 PakistanG J7i1e app1ied ta0i22s on most ag0ic81t80a1 p0od8cts 7a:e 2a11en since t7e ea016 1--$s t7ese ta0i22s 0emain 0e1ati:e16 7ig7 2o0 commodities c1assi2ied as Iessentia1A s8c7 as edi51e oi1s and oi1 seed #ig7 cei1ing 5indings 2o0 most p0od8ctsG 8nde0 t7ei0 !08g8a6 Ro8nd commitments p1ace IndiaG Pakistan and ;ang1ades7 Jit7 t7e 7ig7est 5o8nd 0ates among WTO mem5e0s A1t7o8g7 p0og0ess 7as 5een ac7ie:ed on t7e eDpo0t side 56 0emo:ing eDpo0t cont0o1s 7oJe:e0 0est0ictions sti11 app16 2o0 commodities s8c7 as s8ga0 in India and cotton in Pakistan
% 1% Imp,ications of SPS measures for Pa/istan

15&15I Econo ic de'endenc!
SPS meas80es can e22ecti:e16 2o0ce eDpo0te0s in Pakistan and :a0io8s instit8tions t7at 0ep0esent t7emG into :e06 speci2ic p0od8ction and t0ading met7ods To se0:ice eDpo0t t0adeG 2i0ms in Pakistan Ji11 7a:e to imp1ement speci2ic s6stems 3s8c7 as #ACCP4G o0 sign 8p to pa0tic81a0 <8a1it6 ass80ance sc7emes t7at Jo81d add signi2icant16 to t7ei0 costs T7is potentia116 5ene2icia1 imp0o:ement in <8a1it6 management ma6 280t7e0 ca8se p0o51ems 2o0 Pakistan i2 t7e eDpo0t ma0ket is c1osed 2o0 an6 pa0tic81a0 0eason 3s8c7 as t7e 1oss o2 a cont0act o0 0ed8ction in demand4G and t0ade0s ma6 5e compe11ed to 0e:e0t to 1oca1 ma0kets o0 nea056 eDpo0t oppo0t8nities T7e a1te0nati:e ma0kets a:ai1a51e to Pakistan a0e 7oJe:e0 o2 0e1ati:e16 1oJe0 :a18eG and ma6 not co:e0 t7e eDt0a 2iDed costs t7at ma6 7a:e 5een p8t into se0:icing t7e 7ig7e0 :a18e de:e1oped co8nt06 eDpo0t t0ade
15&15II I%alit! o# 'rod%cts in t"e do estic
arket
T7e iss8e o2 p0od8ct <8a1it6 in t7e domestic ma0ket 7as an impo0tant 5ea0ing on its eDpo0t to de:e1oped co8nt06 ma0kets T7e0e a0e se:e0a1 eDamp1es o2 p0od8cts t7at do not meet t7e 0e<8i0ed SPS standa0ds 2o0 eDpo0tsG 5eing so1d in 1oca1 ma0kets Gi:en t7e ci0c8mstances o2 0eKection o2 p0od8cts 20om t7e eDpo0t t0adeG t7is mig7t se0io8s16 t70eaten t7e Je12a0e o2 1oca1 cons8me0s Nat80a116 t7is Ji11 depend on 7oJ 1oca1 SPS standa0ds a0e app1iedG 58t t7e0e a0e Jidesp0ead comp1aints o2 p0od8cts Jit7 7ig7 1e:e1s o2 contamination appea0ing on 1oca1 ma0kets in Pakistan
15&15III En"anced E$'ort 'otential
9 *$ 9
Once eDpo0te0s 20om Pakistan 7a:e met SPS standa0ds as app1ied 56 ot7e0 co8nt0iesG it ma6 5e possi51e 2o0 t7em to Jiden t7ei0 eDpo0t 5aseG and s8pp16 to a 0ange o2 di22e0ent ma0kets As noted ea01ie0G a n8m5e0 o2 de:e1oped co8nt0ies 7a:e 0e1ati:e16 7ig7e0 SPS standa0ds and as a 0es81tG 7ig7e0 eDpo0t potentia1 EDacting SPS 0e<8i0ements Ji11 act8a116 5ene2it eDpo0te0s in Pakistan and o22e0 t7em an impo0tant so80ce o2 competiti:e ad:antage Associated Jit7 t7is t7e6 can a1so eDp1oit t7e 2act t7at t7ei0 p0od8cts 32o0 eDamp1e 0ice and 208its4G a0e 56 de2inition o0ganic I2 t7is is co8p1ed Jit7 0igid SPS standa0ds and 0e1ia51e con2o0mit6 assessment p0oced80esG t0ade0s in Pakistan can 5ene2it 56 se0:ing g0oJing ma0ket segments in de:e1oped co8nt06 ma0kets EDtensi:e p0od8ction met7ods ma6 a1so appea1 to an inc0easing16 en:i0onmenta116 aJa0e Jo01d ma0ket p0o:ided s8c7 c1aims a0e associated Jit7 7ig7 <8a1it6 standa0ds
% 1' Recommendations
15&45I Long *er
1 S8ppo0t o2 ag0ic81t80e secto0 t70o8g7 8se o2 pe0missi51e s85sidiesG 0emo:a1 o2 ag0ic81t80e income taDG imp0o:e 2a0m to ma0ket 0oadsG ens80e ade<8ate Jate0 s8pp16G ed8cate 2a0me0s on o8tp8t en7ance tec7ni<8esG mo:e 20om s85sistence to comme0cia1 2a0ming Enco80age ag0ic81t80e 0esea0c7 to imp0o:e seed <8a1it6G patent p0od8ctG make 8se o2 TRIMS Rest08ct80e ag0ic81t80e to a demand 0esponsi:e 7ig7 :a18e ag0ic81t80e J7i1e keeping in :ieJ 2ood sec80it6G e<8it6 and K8stice in dist0i58tion o2 t7e 5ene2its
' 3
15&45II S"ort. Medi%

1 ' 3 & )
*er
Imp0o:e inp8tsC p0o:ide 5ette0 seedsG 2e0ti1i=e0sG mac7ine06G desa1ination p1antsG t85e Je11s Di:e0si26 o8t p8t to :a0io8s c0ops so t7at econom6 is not 218ct8ations in p0ices o2 neJ c0ops 1ike cotton and J7eat s85Kected to
Imp0o:e standa0ds to a:oid action 8nde0 SPSG T;T etc 56 imp0o:ing and 8pg0ading <8a1it6 o2 p0od8cts !pg0ade s6stems 2o0 sto0ageG packing g0adingG p0oc80ement and de1i:e06 s6stem tec7no1ogies so as to comp16 Jit7 inte0nationa1 standa0ds Ens80e aJa0eness o2 WTO po1ic6 and imp1icationsG especia116 in 080a1 a0eas t70o8g7 intensi:e aJa0eness sc7emes 8sing 0adio and te1e:ision as Je11 as di0ect o8t0eac7 p0og0ammes
9 *1 9
% 1) Conc,usion
Pakistan 7as compa0ati:e ad:antage in man6 p0ima06 commodities and t7e0e a0e some 8pJa0d t0ends in eDpo0ts o2 p0ima06 commodities ;8t in o0de0 to 28116 8ti1i=e o80 compa0ati:e ad:antageG Je need to 2oc8s on and so1:e t7e p0o51ems in s8pp16 side 3domestic 0e<8i0ements4 It is impe0ati:e 2o0 0eaping t7e p0o5a51e 208its 20om t7e WTO 0egime It is not in t7e inte0est o2 de:e1oped co8nt0ies not to 28116 a11oJ de:e1oping co8nt0ies to 5ene2it 20om t7ei0 compa0ati:e ad:antage T7atAs J76 t7e imp1ementation o2 AoA 7as not 5een 28116 done And t7atAs J76 Canc8n con2e0ence 7as 2ai1ed "811 imp1ementation and imp0o:ed and st0icte0 081es on ag0ic81t80e a0e 5ene2icia1 to 8s Pe0taining to TRIPsG di22e0ent :a0ieties o2 p1ants and anima1 species and t0aditiona1 p7a0mace8tica1 and 7e05a1 knoJ1edge need to 5e 0egiste0ed to take 2811 ad:antage o2 t7em A11 :a18a51e eDpo0t 50ands 1ike ;asmati 0iceG :a0ieties o2 mangoesG o0angesG etc need to 5e p0otected 8nde0 di22e0ent p0o:isions o2 TRIPs ag0eement "80t7e0mo0e Je need to eDp1oit o80 compa0ati:e ad:antage in t7e p0od8ction o2 meatG dai06 p0od8ctsG 208itsG :egeta51es etc As 2a0 as demand side is conce0ned m8c7 mo0e is needed to 5e done in o0de0 to sec80e c8ts in t7e ta0i22s o2 de:e1oped co8nt0ies in o0de0 to capt80e t7e ta0i22 peaks and esca1ations 2o0 inc0eased ma0ket access S85sidies gi:en 56 t7e de:e1oped co8nt0ies need to 5e d0astica116 0ed8ced J7ic7 t7e6 7a:e 5een insisting :e7ement16 so 2a0 E:en t7e g0een 5oD s85sidies o2 de:e1oped co8nt0ies a0e disto0ting Jo01d t0ade in ag0ic81t80e 56 inc0easing p0od8ction and 7ence dep0essing Jo01d p0ices a0e gi:en 56 t7e de:e1oped co8nt0ies J7ic7 is g0eat disad:antage 2o0 co8nt0ies 1ike 8s ;esides eDpo0t s85sides gi:en 56 t7em a1so need e1imination Mis8se o2 SPS and T;T meas80es need to 5e c7ecked
9 *' 9
4 C"a'ter 6ive ( Services Sector '1 Ser1ice Sectors in the 2or,d economy
T7e se0:ices secto0 is t7e 1a0gest and 2astest9g0oJing secto0 o2 t7e Jo01d econom6G p0o:iding mo0e t7an ,$L o2 GDP in man6 co8nt0iesG and an e:en 1a0ge0 s7a0e o2 emp1o6ment Se0:ices t0ade 0ep0esented o:e0 one t7i0d o2 tota1 t0ade in goods and se0:ices in '$$$ Se0:ices a0e c0itica1 to competiti:eness as inp8ts 2o0 ot7e0 secto0sU o8tp8ts .oJe0 cost and 5ette0 se0:ices s85stantia116 0ed8ce costs o2 p0od8ction as Je11 as cost and speed to ma0ket Acco0ding to t7e Wo01d T0a:e1 and To80ism Co8nci1G to80ism is t7e Jo01dUs 1a0gest emp1o6e0G acco8nting 2o0 one in ten Jo0ke0s Jo01dJide
Se0:ice secto0 t0ade is inc0easing16 0ecogni=ed as a c0itica1 component o2 economic g0oJt7C Se0:ices 7a:e 5een t7e 2astest g0oJing component o2 t7e g1o5a1 econom6 2o0 t7e past decade Tota1 meas80a51e t0ade in se0:ices 3as de2ined 8nde0 GATS4G 0ep0esents * ,L o2 Jo01d o8tp8tG and c800ent16 stands at !S S' 3 t0i11ion Se0:ice secto0 t0ade 7as 1a0ge potentia1 2o0 de:e1oping co8nt0iesG and t7e g0oJing inte0nationa1i=ation o2 se0:ices c0eates oppo0t8nit6 2o0 de:e1oping neJ so80ces o2 eDpo0t g0oJt7&&
'!
The need for ,i8era,iFation of Ser1ices
It is t7e need o2 t7e da6 t7at Se0:ices Secto0 is 1i5e0a1i=ed T7e 2o11oJing siD ke6 5ene2its amp16 K8sti26 itC
&&
TRADE EN#ANCEMENT "OR T#E SER/ICES SECTOR 3TESS4 T7e !SAIDEEGATEOEG 580ea8 c0eated TESS in 0ecognition o2 t7e g0oJing 0o1e se0:ices p1a6 in economic de:e1opment
9 *3 9
1. E2(*()-2 8/+9(+),*2/ An e22icient se0:ices in20ast08ct80e is a p0econdition 2o0
economic s8ccess Se0:icesG s8c7 as te1ecomm8nicationsG 5ankingG ins80ance and t0anspo0t s8pp16 st0ategica116 impo0tant inp8ts 2o0 a11 secto0sG goods and se0:ices Wit7o8t t7e sp80 o2 competition t7e6 a0e 8n1ike16 to eDce1 in t7is 0o1e M to t7e det0iment o2 o:e0a11 economic e22icienc6 and g0oJt7 An inc0easing n8m5e0 o2 Go:e0nments t78s 0e16 on an open and t0anspa0ent en:i0onment 2o0 t7e p0o:ision o2 se0:ices . D/3/:(8)/*' Access to Jo01d9c1ass se0:ices 7e1ps eDpo0te0s and p0od8ce0s in de:e1oping co8nt0ies to capita1i=e on t7ei0 competiti:e st0engt7G J7ate:e0 t7e goods and se0:ices t7e6 a0e se11ing A n8m5e0 o2 de:e1oping co8nt0ies 7a:e a1so 5een a51eG 58i1ding on 2o0eign in:estment and eDpe0tiseG to ad:ance in inte0nationa1 se0:ices ma0kets M 20om to80ism and const08ction to so2tJa0e de:e1opment and 7ea1t7 ca0e Se0:ices 1i5e0a1i=ation 7as t78s 5ecome a ke6 e1ement o2 man6 de:e1opment st0ategies $. C(*&7)/+ &,3-*.& T7e0e is st0ong e:idence in man6 se0:icesG not 1east te1ecoms t7at 1i5e0a1i=ation 1eads to 1oJe0 p0icesG 5ette0 <8a1it6 and Jide0 c7oice 2o0 cons8me0s S8c7 5ene2itsG in t80nG Jo0k t7ei0 Ja6 t70o8g7 t7e economic s6stem and 7e1p to imp0o:e s8pp16 conditions 2o0 man6 ot7e0 p0od8cts T78sG e:en i2 some p0ices 0ise d80ing 1i5e0a1i=ationG 2o0 eDamp1e t7e cost o2 1oca1 ca11sG t7is tends to 5e o8tJeig7ed 56 p0ice 0ed8ctions and <8a1it6 gains e1seJ7e0e Mo0eo:e0G go:e0nments 0emain pe02ect16 a51e 8nde0 t7e GATSG e:en in a 28116 1i5e0a1i=ed en:i0onmentG to app16 8ni:e0sa19se0:ice o51igations and simi1a0 meas80es on socia1 po1ic6 g0o8nds ". F,&'/+ -**(3,'-(* Co8nt0ies Jit7 1i5e0a1i=ed se0:ices ma0kets 7a:e seen g0eate0 p0od8ct and p0ocess inno:ation T7e eDp1osi:e g0oJt7 o2 t7e Inte0net in t7e !S is in ma0ked cont0ast to its s1oJe0 take9o22 in man6 Continenta1 E80opean co8nt0ies t7at 7a:e 5een mo0e 7esitant to em50ace te1ecom 0e2o0m Simi1a0 cont0asts can 5e d0aJn in 2inancia1 se0:ices and in2o0mation tec7no1og6 %. G+/,'/+ '+,*&8,+/*20 ,*1 8+/1-2',6-:-'0 A co8nt06Us commitments in its WTO se0:ices sc7ed81e amo8nt to a 1ega116 5inding g8a0antee t7at 2o0eign 2i0ms Ji11 5e a11oJed to s8pp16 t7ei0 se0:ices 8nde0 sta51e conditions T7is gi:es e:e06one Jit7 a stake in t7e secto0Rp0od8ce0sG in:esto0sG Jo0ke0s and 8se0sRa c1ea0 idea o2 t7e 081es o2 t7e game T7e6 a0e a51e to p1an 2o0 t7e 28t80e Jit7 g0eate0 ce0taint6G J7ic7 enco80ages 1ong9te0m in:estment 6. T/25*(:(.0 '+,*&9/+ Se0:ices commitments at t7e WTO 7e1p to enco80age 2o0eign di0ect in:estment 3"DI4 S8c7 "DI t6pica116 50ings Jit7 it neJ ski11s and tec7no1ogies t7at spi11 o:e0 into t7e Jide0 econom6 in :a0io8s Ja6s Domestic emp1o6ees 1ea0n t7e neJ ski11s 3and sp0ead t7em J7en t7e6 1ea:e t7e 2i0m4 Domestic 2i0ms adopt t7e neJ tec7ni<8es And 2i0ms in ot7e0 secto0s t7at 8se se0:ices9secto0 inp8ts s8c7 as te1ecom and 2inance 5ene2it too&)
&)
JJJ Jto o0g
9 *& 9
'3
The Genera, A&reement on Trade in Ser1ices 4GATS6
T7e Gene0a1 Ag0eement on T0ade in Se0:ices 3GATS4 is among t7e Wo01d T0ade O0gani=ationUs most impo0tant ag0eements T7e acco0dG J7ic7 came into 2o0ce in @an8a06 1--)G is t7e 2i0st and on16 set o2 m81ti1ate0a1 081es co:e0ing inte0nationa1 t0ade in se0:ices T7e Go:e0nments t7emse1:es 7a:e negotiated itG and it sets t7e 20ameJo0k Jit7in J7ic7 2i0ms and indi:id8a1s can ope0ate T7e GATS 7as tJo pa0tsC t7e 20ameJo0k ag0eement containing t7e gene0a1 081es and discip1inesQ and t7e nationa1 Nsc7ed81esO J7ic7 1ist indi:id8a1 co8nt0iesA speci2ic commitments on access to t7ei0 domestic ma0kets 56 2o0eign s8pp1ie0s 3See 2811 teDt o2 gene0a1 ag0eement on AnneD &4 GATS is intended to t0ade eDpansion N8nde0 conditions o2 t0anspa0enc6 and p0og0essi:e 1i5e0a1i=ation and as a means o2 p0omoting t7e economic g0oJt7 o2 a11 t0ading pa0tne0s and t7e de:e1opment o2 de:e1oping co8nt0ies&, O
'%
Doha Agenda Negotiations on se0:ices Je0e a10ead6 a1most tJo 6ea0s o1d J7en t7e6 Je0e inco0po0ated into t7e neJ Do7a agenda
T7e WTO Gene0a1 Ag0eement on T0ade in Se0:ices 3GATS4 commits mem5e0 go:e0nments to 8nde0take negotiations on speci2ic iss8es and to ente0 into s8ccessi:e 0o8nds o2 negotiations to p0og0essi:e16 1i5e0a1i=e t0ade in se0:ices T7e 2i0st 0o8nd 7ad to sta0t no 1ate0 t7an 2i:e 6ea0s 20om 1--) Acco0ding16G t7e se0:ices negotiations sta0ted o22icia116 in ea016 '$$$ 8nde0 t7e Co8nci1 2o0 T0ade in Se0:ices In Ma0c7 '$$1G t7e Se0:ices Co8nci1 2812i11ed a ke6 e1ement in t7e negotiating mandate 56 esta51is7ing t7e negotiating g8ide1ines and p0oced80es T7e Do7a Dec1a0ation endo0ses t7e Jo0k a10ead6 doneG 0ea22i0ms t7e negotiating g8ide1ines and p0oced80esG and esta51is7es some ke6 e1ements o2 t7e timeta51e inc18dingG most impo0tant16G t7e dead1ine 2o0 t7e conc18sion o2 t7e negotiations as pa0t o2 a sing1e 8nde0taking T7e 2o11oJing is t7e Wo0k P0og0am 2o0 t7e Se0:ices Secto0 as dec1a0ed in Do7a Dec1a0ationC
NT e ne!otiations on trade in services s all be conducted 9it a vie9 to promotin! t e economic !ro9t o) all tradin! partners and t e development o) developin! and least' developed countries. ,articipants s all submit initial reHuests )or speci)ic commitments by .0 Dune 2002 and initial o))ers by .1 Marc 200..G
''
July package T7e teDt o2 t7e Gene0a1 Co8nci1As decision on t7e Do7a Agenda Jo0k P0og0amme 3t7e N@816 packageO4G ag0eed on 1 A8g8st '$$&G containing 20ameJo0ks and ot7e0 ag0eements designed to 2oc8s t7e negotiations and 0aise t7em to a neJ 1e:e1 In t7e se0:ices secto0C
NT e Aeneral &ouncil ta4es note o) t e report to t e TN& by t e Special Session o) t e &ouncil )or Trade in Services and rea))irms MembersK commitment to pro!ress in t is area o) t e ne!otiations in line 9it t e (o a mandate. T e &ouncil adopts t e recommendations a!reed by t e Special SessionE
&,
P0eam51e o2 GATS
9 *) 9
set out in %nne0 & to t is documentE on t e basis o) 9 ic )urt er pro!ress in t e services ne!otiations 9ill be pursued. *evised o))ers s ould be tabled by May 200;.G
In t7ese negotiations no conc0ete decision Jas 0eac7ed 0ega0ding t0ade in se0:ices
')
:efinition of Ser1ices Trade and Modes of Supp,y
T7e de2inition o2 se0:ices t0ade 8nde0 t7e GATS is 2o809p0ongedG depending on t7e te00ito0ia1 p0esence o2 t7e s8pp1ie0 and t7e cons8me0 at t7e time o2 t7e t0ansaction P80s8ant to A0tic1e IC 'G t7e GATS co:e0s se0:ices s8pp1ied a "0om t7e te00ito06 o2 one Mem5e0 into t7e te00ito06 o2 an6 ot7e0 Mem5e0 3Mode 1 R C0oss 5o0de0 t0ade4Q 5 c In t7e te00ito06 o2 one Mem5e0 to t7e se0:ice cons8me0 o2 an6 ot7e0 Mem5e0 3Mode ' R Cons8mption a50oad4Q ;6 a se0:ice s8pp1ie0 o2 one Mem5e0G t70o8g7 comme0cia1 p0esenceG in t7e te00ito06 o2 an6 ot7e0 Mem5e0 3Mode 3 R Comme0cia1 p0esence4Q and 56 a se0:ice s8pp1ie0 o2 one Mem5e0G t70o8g7 t7e p0esence o2 nat80a1 pe0sons o2 a Mem5e0 in t7e te00ito06 o2 an6 ot7e0 Mem5e0 3Mode & R P0esence o2 nat80a1 pe0sons4
;oD A 5e1oJ gi:es eDamp1es o2 t7e 2o80 modes o2 s8pp16 T7e a5o:e de2inition is signi2icant16 50oade0 t7an t7e 5a1ance o2 pa6ments 3;OP4 concept o2 se0:ices t0ade W7i1e t7e ;OP 2oc8ses on 0esidenc6 0at7e0 t7an nationa1it6 R i e a se0:ice is 5eing eDpo0ted i2 it is t0aded 5etJeen 0esidents and non90esidents R ce0tain t0ansactions 2a11ing 8nde0 t7e GATSG in pa0tic81a0 in t7e case o2 mode 3G t6pica116 in:o1:e on16 0esidents o2 t7e co8nt06 conce0ned Comme0cia1 1inkages ma6 eDist among a11 2o80 modes o2 s8pp16 "o0 eDamp1eG a 2o0eign compan6 esta51is7ed 8nde0 mode 3 in co8nt06 A ma6 emp1o6 nationa1s 20om co8nt06 ; 3mode &4 to eDpo0t se0:ices c0oss95o0de0 into co8nt0ies ;G C etc Simi1a016G 58siness :isits into A 3mode &4 ma6 p0o:e necessa06 to comp1ement c0oss95o0de0 s8pp1ies into t7at co8nt06 3mode 14 o0 to 8pg0ade t7e capacit6 o2 a 1oca116 esta51is7ed o22ice 3mode 34&*
B(; A4 E;,)8:/& (9 '5/ 9(7+ M(1/& (9 S788:0 <9+() '5/ 8/+&8/2'-3/ (9 ,* J-)8(+'-*.K
&*
JJJ Jto o0g
9 *, 9
2(7*'+0 A= M(1/ 14 C+(&&!6(+1/+ A 8se0 in co8nt06 A 0ecei:es se0:ices 20om a50oad t70o8g7 its te1ecomm8nications o0 posta1 in20ast08ct80e S8c7 s8pp1ies ma6 inc18de cons81tanc6 o0 ma0ket 0esea0c7 0epo0tsG te1e9 medica1 ad:iceG distance t0ainingG o0 a0c7itect80a1 d0aJings M(1/ 4 C(*&7)8'-(* ,6+(,1 Nationa1s o2 A 7a:e mo:ed a50oad as to80istsG st8dentsG o0 patients to cons8me t7e 0especti:e se0:ices M(1/ $4 C())/+2-,: 8+/&/*2/ T7e se0:ice is p0o:ided Jit7in A 56 a 1oca116 esta51is7ed a22i1iateG s85sidia06G o0 0ep0esentati:e o22ice o2 a 2o0eign9oJned and R cont0o11ed compan6 35ankG 7ote1 g0o8pG const08ction compan6G etc 4 M(1/ "4 M(3/)/*' (9 *,'7+,: 8/+&(*& A 2o0eign nationa1 p0o:ides a se0:ice Jit7in A as an independent s8pp1ie0 3e g G cons81tantG 7ea1t7 Jo0ke04 o0 emp1o6ee o2 a se0:ice s8pp1ie0 3e g cons81tanc6 2i0mG 7ospita1G const08ction compan64
'+
Schedu,es of commitment
Eac7 WTO Mem5e0 1ists in its nationa1 sc7ed81e t7ose se0:ices 2o0 J7ic7 it Jis7es to g8a0antee access to 2o0eign s8pp1ie0s A11 commitments app16 on a non9disc0iminato06 5asis to a11 ot7e0 Mem5e0s T7e0e is comp1ete 20eedom to c7oose J7ic7 se0:ices to commit In addition to t7e se0:ices committedG t7e sc7ed81es 1imit t7e deg0ee to J7ic7 2o0eign se0:ices p0o:ide0s can ope0ate in t7e ma0ket "o0 eDamp1eG a co8nt06 making a commitment to a11oJ 2o0eign 5anks to ope0ate in its te00ito06 ma6 1imit t7e n8m5e0 o2 5anking 1icenses to 5e g0anted 3a ma0ket access 1imitation4 It mig7t a1so 2iD a 1imit on t7e n8m5e0 o2 50anc7es a 2o0eign 5ank ma6 open 3a nationa1 t0eatment 1imitation4&+.
'-
Sectors co1ered under the GATS
To st08ct80e t7ei0 commitmentsG WTO Mem5e0s 7a:e gene0a116 8sed a c1assi2ication s6stem comp0ised o2 1' main se0:ice secto0s T7ese a0e t7e 2o11oJingC
1 ' 3 & ) , * +
&+
;8siness se0:ices 3inc18ding p0o2essiona1 se0:ices and comp8te0 se0:ices4 Comm8nication se0:ices Const08ction and 0e1ated enginee0ing se0:ices Dist0i58tion se0:ices Ed8cationa1 se0:ices En:i0onmenta1 se0:ices "inancia1 se0:ices 3inc18ding ins80ance and 5anking4 #ea1t790e1ated and socia1 se0:ices
A page o2 sc7ed81e o2 speci2ic commitments o2 Pakistan is attac7ed as AnneD +
9 ** 9
1$ 11 1'
To80ism and t0a:e190e1ated se0:ices Rec0eationa1G c81t80a1 and spo0ting se0:ices T0anspo0t se0:ices Ot7e0 se0:ices not inc18ded e1seJ7e0e
T7ese secto0s a0e 280t7e0 s85di:ided into a tota1 o2 some 1,$ s859secto0s 3see AnneD ) 2o0 detai1 o2 s859secto0s4 !nde0 t7is c1assi2ication s6stemG an6 se0:ice secto0 ma6 5e inc18ded in a Mem5e0As sc7ed81e o2 commitments Jit7 speci2ic ma0ket access and nationa1 t0eatment o51igations Eac7 WTO Mem5e0 7as s85mitted s8c7 a sc7ed81e 8nde0 t7e GATS
'.
E3empted Ser1ices
T7e GATS app1ies in p0incip1e to a11 se0:ice secto0sG Jit7 tJo eDceptions A0tic1e I 334 o2 t7e GATS eDc18des Nse0:ices s8pp1ied in t7e eDe0cise o2 go:e0nmenta1 a8t7o0it6O T7ese a0e se0:ices t7at a0e s8pp1ied neit7e0 on a comme0cia1 5asis no0 in competition Jit7 ot7e0 s8pp1ie0s Cases in point a0e socia1 sec80it6 sc7emes and an6 ot7e0 p851ic se0:iceG s8c7 as 7ea1t7 o0 ed8cationG J7ic7 is p0o:ided at non9ma0ket conditions "80t7e0G t7e AnneD on Ai0 T0anspo0t Se0:ices eDempts 20om co:e0age meas80es a22ecting ai0 t0a22ic 0ig7ts and se0:ices di0ect16 0e1ated to t7e eDe0cise o2 s8c7 0ig7ts&-
' 19 Ro,e and Responsi8i,ities of Mem8er Go1ernments

Gi:en t7e 0eg81ato06 intensit6 o2 man6 se0:ice acti:ities and t7e 0ange o2 secto0s in:o1:edG p0ope0 co9o0dination and in2o0mation ac0oss agencies and go:e0nment 1e:e1s is c0itica1 2o0 at 1east t70ee p80posesC i ii Ens80ing aJa0eness o2 t7e t6pes o2 GATS90e1ated meas80es 2a11ing 8nde0 a minist06 o0 agenc6As K80isdiction Ens80ing t7at eac7 minist06Eagenc6 7as p0ope016 identi2ied and ana16=ed R against t7e 5ackg0o8nd o2 eDisting GATS o51igationsG inc18ding speci2ic commitments R its c800ent 8se o2 meas80es Ens80ing t7atG in p0epa0ing neJ meas80esG 0e1e:ant GATS o51igations R inc18ding noti2ication 0e<8i0ements R a0e taken into acco8nt and comp1ied Jit7
iii
As noted 5e2o0eG apa0t 20om speci2ic commitmentsG t7e0e a0e in p0incip1e tJo t6pes o2 1ega1 o51igations 8nde0 t7e Ag0eementC 8nconditiona1 o51igations t7at app16 ac0oss a11 se0:ices co:e0ed 56 GATSG and conditiona1 o51igations t7at app16 on16 to secto0s J7e0e speci2ic commitments 7a:e 5een made
&-
JJJ Jto o0g
9 *+ 9
A O51igations in a11 secto0s 2a11ing 8nde0 t7e GATS 3N8nconditiona1O4C

Ens80e comp1iance Jit7 M"N 0e<8i0ement 3A0tic1e II4 P851is7 a11 meas80es pe0taining to o0 a22ecting t7e ope0ation o2 GATS 3A0tic1e IIIC14 Instit8te 1ega1 comp1aints mec7anisms 2o0 a22ected s8pp1ie0s 3A0tic1e /IC'4 Ens80e t7at 0ecognition meas80es a0e compati51e Jit7 t7e p0o:isions o2 A0tic1e /II P0e:ent monopo1ies 20om 8nde0mining t7e M"N 0e<8i0ement 3A0tic1e /IIIC14 Cons81t Jit7 ot7e0 Mem5e0sG 8pon 0e<8estG on 58siness p0actices t7at ma6 0est0ain competition 3A0tic1e I>C'4
O51igations in secto0s in J7ic7 GATS commitments 7a:e 5een 8nde0taken 3Nconditiona1O4C

;

Noti26 an6 neJ 1aJsG 0eg81ations etc t7at signi2icant16 a22ect t0ade 3A0tic1e IIIC34 Administe0 0eg81ations in a 0easona51eG o5Kecti:eG and impa0tia1 manne0 3A0tic1e /IC14 P0e:ent 1icensing and <8a1i2ication 0e<8i0ements and tec7nica1 standa0ds 20om n811i26ing o0 impai0ing commitments 30e1e:ant c0ite0ia a0e speci2ied in A0tic1e /IC)4 P0e:ent monopo1ies 20om 8nde0mining commitments 3A0tic1e /IIIC1 and '4 Ens80e a5sence o2 0est0ictions on pa6ments and t0ans2e0s 3A0tic1e >IC14
' 11 GATT =s GATS

As Jit7 t7e GATT ag0eementG GATS consists o2 t70ee pa0tsC 14 t7e 5asic 081esG '4 anneDes dea1ing Jit7 speci2ic secto0sG and 34 sc7ed81es 1isting t7e indi:id8a1 commitments o2 mem5e0 co8nt0ies as to J7ic7 ma0kets t7e6 Ji11 open to 2o0eign se0:ice p0o:ide0s @8st as Jit7 GATTG t7ese sc7ed81es Ji11 5e t7e s85Kect o2 a contin8ing p0ocess o2 280t7e0 1i5e0a1i=ation T7e 5asic 081es o2 GATS em5od6 simi1a0 concepts as in GATTG s8c7 as %rticle II7 Most' Favored Nation (MFN) Treatment 3i e i2 a mem5e0 a11oJs 2o0eign in:o1:ement in one o2 its se0:ices ma0ket t7en it m8st a11oJ it e<8a116 to a11 mem5e0s4 and %rticle L"II7 National Treatment 3i e 2o0eign se0:ice p0o:ide0s a11oJed in s7o81d 5e t0eated at 1east as
9 *- 9
Je11 as domestic ones4 Note t7at d8e to t7e neJness o2 GATSG mem5e0s Je0e pe0mitted to 1ist tempo0a06 Jit7d0aJa1s 20om t7e M"N 081eG s8c7 as to a11oJ 2o0 a10ead6 eDisting ag0eements J7e0e one co8nt06 7ad p0omised to gi:e anot7e0 p0e2e0entia1 t0eatment T7ese eDceptions Ji11 gene0a116 1ast 2o0 1$ 6ea0s Additiona116G t7e nationa1 t0eatment 081e c800ent16 on16 app1ies i2 a mem5e0 7as made a speci2ic commitment to a11oJ 2o0eigne0s e<8a1 access to a pa0tic81a0 ma0ketG and 1imitations Je0e a11oJed 3s8c7 as a co8nt06 gi:ing access to 2o0eign 5anks to ope0ate Jit7in its te00ito06G 58t not a11oJing t7em to open as man6 50anc7es as domestic 5anks4 Ot7e0 5asic 081es inc18de %rticle "7 /conomic Inte!ration J7ic7 a11oJs 2o0 0egiona1 ag0eements 1ike NA"TA 3simi1a0 to GATT A0tic1e >>I/4 and %rticle LI"7 Aeneral /0ceptions a11oJing GATS 081es to 5e 50oken i2 it is Wnecessa06 to p0otect 78manG anima1 o0 p1ant 1i2e o0 7ea1t7W 3simi1a0 to GATT A0tic1e >>4)$ NOTE4 a 2eJ case st8dies 7a:e 5een added as A**/; 6G 0ega0ding t7e GATS g0oJing 0o1e in disp8tes
' 1! Critica, areas of GATS

GATS poses man6 p0o51ems to t7e de:e1oping and poo0 co8nt0ies as Je11 as t7ei0 citi=ens Some se0:ices a0e not K8st commodities t7at can 5e 1e2t to t7e ma0ketG Jit7 access dependent on income Instead t7e6 a0e essentia1 to 78man Je11 5eing S8c7 se0:ices inc18de 7ea1t7G ed8cation and sanitation Go:e0nments s7o81dG Je a0g8eG 7a:e a 0esponsi5i1it6 to ens80e 8ni:e0sa1 access to s8c7 se0:ices T7e se0:ice secto0 a1so inc18des 8ti1ities essentia1 to t7e de:e1opment o2 t7e econom6G 1ike te1ecomm8nications Co0e WTO p0incip1es 0e<8i0e go:e0nments to t0eat 2o0eign 2i0ms at 1east as Je11 as domestic onesG and to t0eat a11 2o0eign s8pp1ie0s e<8a116 %et GATS 081es eDtend 5e6ond t7isG 0est0icting go:e0nmentAs a5i1it6 to make 081es e:en i2 t7e6 app16 to 5ot7 domestic and 2o0eign 2i0ms Go:e0nments Ji11 pa6 a 7ig7 p0ice in 1osing t7e 0ig7t to 0eg81ateG a 1oss J7ic7 7as s85stantia1 imp1ications 2o0 democ0atic p1anning T7e GATS imposes const0aintsG 7oJe:e0G on t7e 8se o2 8nnecessa0i16 0est0icti:e o0 disc0iminato06 0e<8i0ements in sc7ed81ed secto0s O ;8t 7e0ein 1ies t7e c08D o2 t7e p0o51emC J7o decides J7at is I0easona51eA and J7at is I8nnecessa0i16 0est0icti:eAP Not democ0atica116 e1ected 0ep0esentati:es 58t t0ade IeDpe0tsA Go:e0nments need to 0etain t7e 0ig7t to 0eg81ate i2 t7e6 a0e to go:e0n 0esponsi516 T7is inc18des t7e a5i1it6 to imp1ement not K8st 0eg81ations to ens80e t7at t7e ma0ket ope0ates smoot716G J7ic7 GATS a11oJsG 58t a1so 0eg81ations designed to meet t7e socia1G po1itica1 and en:i0onmenta1 goa1s t7at citi=ens and t7ei0 go:e0nments aspi0e to As 2a0 as t7e m6t7 o2 t7e t0ans2e0 o2 tec7no1og6 is conce0nedG 2o0eign 2i0ms tend to 5e 0e18ctant to 7and o:e0 t7ei0 knoJM7oJ to 1oca1G potentia1 competito0s Some !S 2inancia1 se0:ice s8pp1ie0s ope0ating in A20ica and Asia 7a:e stip81ated in t7ei0 emp1o6eesA cont0acts t7at sta22 cannot Koin a 0i:a1 domestic 2i0m 2o0 a 2iDed pe0iod o2 time once t7e6
)$
WTO and its M81ti1ate0a1 T0ade Ag0eementsG 56C Keit7 "e0g8son 3p851is7ed in Economic @8sticeEG1o5a1i=ation4
9 +$ 9
7a:e 1e2t t7e !S 2i0m T7is ens80es t7at t7e0e is no spi11o:e0 o2 ski11s and ce0tain16 no tec7no1og6 t0ans2e0 As ea016 as 1-+*G E80opean GATS negotiato0s acknoJ1edged t7at de:e1oping co8nt0ies Jo81d on16 5ene2it 20om t7e ag0eement i2 se0:ice p0o:ide0s Je0e o51iged to t0ans2e0 tec7no1og6 9 58t t7e6 a1so 0ecogni=ed t7at t7is Jo81d 5e a1most impossi51e to en2o0ce and imp1icit16 acknoJ1edged t7at tec7no1og6 t0ans2e0 to de:e1oping co8nt0iesG m8c7 needed i2 t7e6 a0e to g0oJ economica116G Jas 8n1ike16 to 7appen
I2 poo0e0 g0o8ps in societ6 a0e to 5ene2it at a11 20om 2o0eign in:estmentG it is most 1ike16 to 5e t70o8g7 t7e c0eation o2 income9ea0ning emp1o6ment @o5s s7o81d 5e 2o0t7coming J7en 1oca1 58siness is stim81ated 58tG as pointed o8t a5o:eG t7is doesnAt a1Ja6s 7appen Mo0eo:e0G t7e take9o:e0 o2 p0e:io8s16 state9oJned ente0p0ises o2ten 1eads to 0ed8ndancies IndeedG 2o0eign 2i0ms o2ten c1aim t7at t7e6 Ji11 inc0ease e22icienc6 and p0od8cti:it6 1e:e1s J7en t7e6 586 8p state ente0p0isesG 58t one o2 t7e main Ja6s t7e6 do so is 56 getting 0id o2 sta22 0at7e0 t7an 56 inc0easing p0od8ction o0 capacit6G J7ic7 in t80n 1eads to imp0o:ed <8a1it6 and 1oJe0 costs 2o0 cons8me0s T7e 0es81ts o2 se0:ice 1i5e0a1i=ation 2o0 de:e1oping co8nt0ies and t7e poo0e0 peop1e Jit7in t7emG 7a:e 5eenG at 5estG miDed Man6 de:e1oping co8nt0ies 7a:e 1itt1e to gain 20om t7e p0ocess 5eca8se t7e6 do not 7a:e se0:ice eDpo0te0s o0 st0ong 0eg81ato06 5odies to o:e0see t7e p0ocess)1
' 13 PACISTAN AN: T"E GATS

45&/5I S"are o# Services in t"e Econo ! o# <akistan
Se0:ices p1a6 an impo0tant 0o1e in t7e econom6 o2 Pakistan T7e6 cont0i58te mo0e t7an 7a12 o2 GDP and acco8nt 2o0 a0o8nd &)L o2 t7e tota1 1a5o80 2o0ce emp1o6ed in t7e co8nt06 T7e se0:ices a0e p1aced 8nde0 siD 50oad secto0s in t7e nationa1 acco8nts 2o0 t7e p80pose o2 ca1c81ating secto0a1 GDP in Pakistan T7ei0 com5ined s7a0e in GDP 7as 0emained a0o8nd )'9)3L on a:e0age in t7e -$s and t7ese 7a:e 0eco0ded a com5ined g0oJt7 o2 & ) pe0 6ea0 d80ing t7is pe0iod Indi:id8a1 secto0a1 s7a0e in GDP and g0oJt7 0ate d80ing t7e -$s a0e gi:en in t7e ta51e 5e1oJ J7ic7 s7oJs t7at t7e J7o1esa1e and 0etai1 t0ade secto0s c1aims t7e 7ig7est s7a0e 2o11oJedG in descending o0de0G t0anspo0tG sto0age ? comm8nicationG p851ic administ0ation ? de2enseG oJne0s7ip o2 dJe11ingsG const08ction and 2inance ? ins80ance T7e 0emaining se0:ices 7a:e 5een g0o8ped 8nde0 Not7e0 se0:icesO J7ose s7a0e is s1ig7t16 5igge0 t7an t7at o2 p851ic administ0ation ? de2ense In t7e case o2 oJne0s7ip o2 dJe11ings and Not7e0 se0:icesOG t7e nationa1 acco8nts estimation met7odo1og6 ass8med t7e g0oJt7 at constant 0ate In t7e case o2 ot7e0 secto0s t7e g0oJt7 7as 218ct8ated 2o0 6ea09to96ea0 and Jide :a0iations 7a:e 5een o5se0:ed in g0oJt7 ac0oss t7e secto0s
)1
Wo01d De:e1opment Mo:ement 3WDM4 Repo0t
9 +1 9
TABLE 14 SHARE OF SERVICES SECTOR IN GDP <G, REAL=%
1--&E-) -)E-, Se0:ices Const08ction &- 3 &$ &+ ) 3&'
-,E-* &- ) 3+ &$
-*E-+ &+ , 3* &'
-+E-&3& &*
--E$$ &- 1 3) &&
$$E$1 )$ ' 3& 3+
$1E$' )$ 33 3,
E1ect0icit6G GasG & $ and Wate0 W7o1esa1e and 1, 3 Retai1 T0ade T0anspo0tG 1$ ' Sto0ageG and Comm8nication "inance Ins80ance OJne0s7ip DJe11ings P851ic administ0ation and De2ense Ot7e0 and ' )
1, '
1, 1
1) &
1) '
1& -
1) 3
1) 1
-,
-+
1$ '
1$ 3
1$ '
1$ )
1$ 1
'*
'-
''
')
'3
'3
'3
o2 ) ,
))
)*
)+
)-
)-
,1
,'
,&
,'
,3
,'
,1
,)
,&
*3
+'
+'
+,
+-
-1
-3
-,
--
45&/5II S"are o# Services sector in total e 'lo! ent

;etJeen 1--) and '$$$G t7e secto0Us s7a0e in tota1 emp1o6ment 0emained sta51e at a0o8nd &' *L W7o1esa1e and 0etai1 t0adeG and t0anspo0tG sto0ageG and comm8nications 7a:e 5een 56 2a0 t7e 1eading se0:ice acti:ities in PakistanQ ot7e0 impo0tant se0:ice acti:ities Je0e p851ic se0:icesG oJne0s7ip o2 dJe11ingsG dist0i58tion o2 e1ect0icit6G gas and Jate0G and const08ction 3Ta51e ' 5e1oJ4 ;etJeen 1--)E-, and '$$$E$1G eDpo0ts o2 non92acto0 se0:ices d0opped 56 a5o8t &,L to !SS1 $ 5i11ionQ in '$$$E$1G eDpo0ts o2 comme0cia1 se0:ices 0ep0esented 13 ,L o2 tota1 eDpo0ts o2 goods and non92acto0 se0:ices D80ing t7e
)'
Economic S80:e6 '$$19$'
9 +' 9
same pe0iodG impo0tsG 1a0ge16 consisting o2 s7ipment se0:icesG 2e11 56 mo0e t7an &)L to !SS1 + 5i11ion WOt7e0 se0:icesW 0e2e0 to in21oJsEo8t21oJs 0e1ating to t7e ope0ation o2 missionsE0ep0esentations 32o0eign in PakistanG Pakistani a50oad4G 0o6a1tiesG 5ank commissions and c7a0gesG tec7nica1E1ega1 2eesG and s8nd06 ins80ance pa6ments
TABLE 4 SHARE OF SERVICES SECTOR IN TOTAL EMPLOYMENT <G= 1--) Se0:ices E1ect0icit6G gasG and Jate0 Const08ction T0anspo0t Comme0ce Ot7e0 &' * $+ *' )1 1& ) 1) 1 1--, &' * $+ *' )1 1& ) 1) 1 1--* && * 1$ ,+ )* 1& , 1, , 1--+ &' , $* ,3 )) 13 1, 3 1--&' , $* ,3 )) 13 1, 3 '$$$ &' , $* ,3 )) 13 1, 3
Source7 8T< T,* ,a4istan 2001'02
T7e inte0nationa1 t0ade o2 Pakistan in se0:ices inc18ding "DI 2a11s neDt to me0c7andise t0ade in impo0tance 2o0 Pakistan Me0c7andise t0ade 7as 0emained in t7e 0ed t70o8g7o8t t7e 7isto06 o2 Pakistan eDcept 2o0 tJo 6ea0s Cont0a06 to t7at t7e se0:ices acco8nt 3net4 7as 0emained s80p18s and t7at 7as 7e1ped t7e co8nt06 to meet maKo0 pa0t o2 t7e me0c7andise gap I2 one 1ooks at t7e components o2 t7e se0:icesG it is 2o8nd t7at t7e co8nt06As pa6ments Je0e m8c7 7ig7e0 t7an its 0eceipts in t7e acco8nt o2 s7ipment as Je11 as in t7e acco8nt o2 t0a:e1 #oJe:e0G its 0eceipts 7a:e eDceeded pa6ments in t7e acco8nt o2 ot7e0 t0anspo0tation Wo0ke0sA 0emittances acco8nt 2o0 t7e 1a0gest component o2 se0:ices and t7e co8nt06 7ad eDpo0ted a 1a0ge n8m5e0 o2 Jo0ke0s T7at 7as 5een 2etc7ing 78ge amo8nts o2 2o0eign eDc7ange T7ese a0e s7oJn 8nde0 8n0e<8ited p0i:ate t0ans2e0s Simi1a016G t7e -$As 2o0eign di0ect in:estment 3"DI4 7ad 5ecome a 5ig item in -$As Jit7 t7e 1a8nc7ing o2 1i5e0a1i=ation 0e2o0ms in t7e co8nt06 Ne:e0t7e1essG t7e pa6ment against t7e acco8nt o2 2o0eign di0ect in:estment 3"DI4 made 56 Pakistani a50oad as 0emained an insigni2icant amo8nt)3
)3
D0 M8s7ta< A7madG Pakistan And GatsC An Assessment O2 Po1icies And "8t80e P0ospects
9 +3 9
45&/5III AA*S and <akistan

Pakistan is a 2o8nding mem5e0 o2 t7e GATT and it 7as acti:e16 pa0ticipated in a11 eig7t 0o8nds o2 m81ti1ate0a1 negotiations Despite its initia1 0ese0:ations on t7e inc18sion o2 some non9t0aditiona1 a0eas in t7e P8nta de1 Esta mandate o2 Septem5e0 1-+,G t7e co8nt06 7ad made its cont0i58tion in t7e s8ccess281 conc18sion o2 t7e !08g8a6 Ro8nd Ag0eement 3!RA4 and on 1)t7 Ap0i1 1--& it Jas one o2 t7e 1') mem5e0 go:e0nments J7o signed t7e Ma00akas7 dea1 t7at esta51is7ed t7e WTO It 7ad 0emained associated Jit7 t7e Singapo0e and t7e Gene:a WTO Ministe0ia1 Con2e0ences as Je11 as Jit7 on going m81ti1ate0a1 negotiations in some a0eas to comp1ete t7e 0e<8i0ements o2 t7e !RA On t7e ot7e0 7and t7e Wo01d ;ankG t7e IM"G t7e "AOG t7e AD; and ot7e0 m81ti1ate0a1 agencies and aid dono0As C185s 7a:e esta51is7ed co11a5o0ation Jit7 t7e WTO J7i1e on t7e ot7e0 7and t7ese Je0e 3and a0e sti114 o2ten in:o1:ed in cons81tati:e p0ocess 56 Pakistan in 2o0m81ating its mac0o9economic and secto0a1 po1icies D80ing t7e !R pe0iod Pakistan 7ad independent16 8nde0taken imp1ementing st08ct80a1 0e2o0ms t7at inte0 a1ia aimed at 2ast integ0ation o2 its econom6 into g1o5a1 economic s6stem and its 1i5e0a1i=ation Despite 7ig7 socio9economic cost t7ese 0e2o0ms a0e 5eing :igo0o8s16 imp1emented e:en in t7e post !RA pe0iod.
45&/5IV <akistanGs co
it ents in trade in Services
Pakistan adopted a ca8tio8s app0oac7 J7i1e making commitments in t0ade in se0:ices on ma0ket accessG nationa1 t0eatment ? M"N t0eatment T7is Jas g8ided 56 a n8m5e0 o2 conside0ationsG 2o0 instance Pakistan 1ike man6 de:e1oping co8nt0ies 2o8nd t7at t7e GATS a11oJs t7e capita1 o2 de:e1oped co8nt0ies t70o8g7 Mode 3 g0eate0 ma0ket access in t7e de:e1oping co8nt0ies t70o8g7 Mode & is 0est0icted Se0:ices Secto0 in Pakistan 1ike man6 ot7e0 de:e1oping co8nt0ies is 2a0 1ess de:e1oped compa0ed to t7at o2 de:e1oped co8nt0iesG and 7ence J7en t7e 20ee t0ade opens in se0:ices t7e co8nt06 Ji11 5e t7e 1ose0 on t7e 5asis o2 compa0ati:e ad:antage p0incip1e Pakistan made comp0e7ensi:e initia1 commitments T7ese commitments Je0e in t7e 2o0m o2 conditiona1 o22e0 and Je0e made a2te0 cons81tation Jit7 t7e inte0ested mem5e0 co8nt0iesG and taking into conside0ation t7e 0e<8est made 56 t7em Pakistan speci2ied t7at its o22e0 Jas conditiona1 s85Kect to t7e eDtent and nat80e o2 t7e commitments made 56 ot7e0 pa0ticipantsG pa0tic81a016 in t7e secto0sEs859secto0s and mode o2 s8pp16 o2 inte0est to Pakistan 3in pa0tic81a0 t7e Nmo:ement o2 nationa1 pe0sonsO4)&
45&/5V <akistanGs sc"ed%le o# co
it ents
T7e sc7ed81e o2 speci2ic commitments o2 Pakistan comp0ises t7e 2o11oJing secto0sC
)&
Pakistan and t7e GATS 56 D0 M8s7ta< A7med
9 +& 9
45&/5VI HORIKO7*AL COMMI*ME7*SH A11 secto0s a0e inc18ded in t7is sc7ed81eG and t7ese a0e app1ied ac0oss t7e 5oa0dC
Comme0cia1 p0esence s85Kect to inco0po0ation in Pakistan "o0eign e<8it6 1imited to )1L Rep0esentati:e o22ices a11oJed 2o0 a 2eJ se0:icesG s85Kect to t7e condition t7at a11 eDpenses o2 s8c7 o22ices s7a11 5e met 56 0emittances 20om a50oad T7ei0 acti:ities 0est0icted to 1iaison Jo0k o0 o2 0ep0esenting t7e inte0est o2 pa0ent compan6 a50oad Ac<8isition o2 1and 56 non9Pakistani entities s85Kect to a8t7o0i=ation on a case9 569case 5asis Nat80a1 pe0sons 8p to a maDim8m o2 )$L%% o2 manage0G specia1istsG etc
45&/5VII SEC*OR S<ECI6IC COMMI*ME7*SH 1 ;8siness Se0:ices ' Comm8nication Se0:ices 3 Const08ction and 0e1ated enginee0ing se0:ices & "inancia1 Se0:ices ) #ea1t7 and 0e1ated socia1 se0:ices , To80ism and T0a:e1 0e1ated socia1 se0:ices
See AnneD * 2o0 detai1 o2 t7e secto0sEs859secto0s
' 1% TE@ECOMM*NICATION SECTOR

E22ecti:e te1ecomm8nications p0o:ide a 1oJ9cost c7anne1 2o0 sea0c7ingG gat7e0ing and eDc7anging in2o0mation t7atG in t80nG is a ke6 inp8t in a11 economic acti:ities #a0d16 an6 58siness toda6 can ope0ate Jit7o8t te1ecomm8nications "o0 man6 ind8st0ies t7e te1ep7one is t7e p0ima06 point o2 se11ingG and t7e Inte0net is an inc0easing16 impo0tant c7anne1 2o0 ma0ketingG and 2o0 sa1es 2o0 some ind8st0ies Te1ecomm8nications netJo0ks p0o:ide t7e s8ppo0ting in20ast08ct80e 2o0 s8c7 in2o0mation 21oJs and 2o0 Inte0net access D80ing t7e past 2eJ decadesG tec7no1ogica1 p0og0ess in t7e te1ecomm8nications secto0 7as 5een 0ema0ka51e and t7e0e 7as 5een a 0apid di228sion o2 tec7no1og6 as Je11 It is noJ possi51e 2o0 co8nt0ies t7at 7a:e 1agged in economic and tec7no1ogica1 de:e1opment to sJitc7 to t7e most 0ecent tec7no1ogies at 0e1ati:e16 1oJ costs o2 adoption In A20icaG 2o0 eDamp1eG -) pe0 cent o2 mo5i1e 1ines Je0e GSM in '$$1G Je11 a5o:e t7e Jo01d a:e0age o2 *$ pe0 cent Te1ecomm8nications a0e a netJo0k ind8st06 and as s8c7 t7e :a18e o2 t7e netJo0k 2o0 eac7 c8stome0 inc0eases Jit7 t7e si=e o2 t7e netJo0k ;eca8se o2 t7is and 5eca8se o2 economies o2 sca1eG t7e ind8st06 Jas conside0ed a nat80a1 monopo16 in t7e past Recent tec7no1ogica1 de:e1opments 7a:eG 7oJe:e0G 0ed8ced t7e impo0tance o2 economies o2 sca1e and made :e0tica1 disinteg0ation and competition possi51e As a conse<8enceG most
))
Asa2 G7a2oo0G Di0ecto0 EDpo0t P0omotion ;80ea8G .a7o0e
9 +) 9
co8nt0ies 7a:e ca00ied o8t 0eg81ato06 0e2o0msG o2ten inc18ding p0i:ati=ation o2 state monopo1ies and t7e int0od8ction o2 competition in some o0 a11 ma0ket segments Reg81ato06 0e2o0ms in t7e secto0 7a:e cont0i58ted to 280t7e0 inno:ationsG di228sion o2 tec7no1og6 and a s85stantia1 0ed8ction in t7e cost o2 te1ecomm8nication se0:ices
45&15I AA*S and *eleco
%nication
C0oss95o0de0 t0ade in se0:ices 3GATS Mode 14 1a0ge16 depends on te1ecomm8nications as t7e c7anne1 2o0 t0ansactions A st8d6 o2 t7e impact o2 t7e Inte0net on !S t0ade in se0:ices 2o8nd t7at t0ading pa0tne0sA Inte0net penet0ation 7ad a signi2icant impact on !S impo0ts o2 58sinessG p0o2essiona1 and tec7nica1 se0:ices ;8t no signi2icant 0e1ations7ip 5etJeen Inte0net penet0ation and !S eDpo0ts o2 se0:ices Jas 2o8nd 3"0e8nd and Wein7o1dG '$$'4 A possi51e eDp1anation is t7at it is o2ten t7e c8stome0 3impo0te04 J7o dete0mines t7e mode o2 s8pp16 and comm8nication As a10ead6 indicatedG competition is c08cia1 2o0 a desi0a51e o8tcome o2 0e2o0ms in t7e te1ecomm8nication secto0G and t0ade 1i5e0a1i=ation is one meas80e to t7is e22ect An ana16sis o2 t7e 0e1ation 5etJeen se0:ice s8pp16 and t7e eDtent to J7ic7 2o0eign ent06 is 0est0icted 2inds t7at t7e mo0e 0est0icted is 2o0eign ent06G t7e 1oJe0 t7e mo5i1e te1ep7one densit6 *1 It is a1so Jo0t7 noting t7at t7e mo0e open ma0ket95ased mo5i1e se0:ices 7a:e p0od8ced a na00oJe0 inte0nationa1 digita1 gap t7an t7e state9cont0o11ed 2iDed91ine se0:ices As a 0es81tG in se:e0a1 co8nt0iesG inc18ding some o2 t7e poo0est co8nt0ies in t7e Jo01dG 7o8se7o1ds and 58sinesses 7a:e 5ette0 access to mo5i1e se0:ices t7an to 2iDed 1ine se0:ices),
45&15II Pa/istan<s Commitments in Te,ecom Sector <akistan "as ade t"e #ollowing co it ents in t"e *eleco SectorH
o Pakistan 7as 0est0icted t7e ma0ket accessG pa0tic81a016 2o0 t7e Mode 1 and in some cases 2o0 Mode 3 o A11 se0:ices to 5e p0o:ided in Pakistan s7a11 0e<8i0e a 1icense 20om t7e 0eg81ato06 a8t7o0it6 o T7e con2identia1it6 o2 inte0nationa1 tota1 acco8nting 0ate 3TAR4 s7a11 5e maintained o ;i1ate0a1 ag0eements on acco8nting 0ates s7a11 5e in acco0dance Jit7 IT! G8ide1ines o !p to 1$$ L 2o0eign in:estment on 1icensed se0:ices pe0mitted
),
%o8sa2 #a0oon
9 +, 9
Pakistan 7as speci2ied in attac7ment to its sc7ed81eG t7e 081es and p0oced80esG t7e t0anspa0enc6 o2 its 0eg81ationsG inte09connection and n8m5e0ingG competition sa2eg8a0ds standa0ds and ta0i22 0egime
45&15III <akistanGs Co 'liance in t"e *eleco
sectorH
Pakistan 7as 5een 2o11oJing t7e po1ic6 o2 de0eg81ation 8nde0 t7e di0ection o2 t7e I"IsG 0ega0d1ess o2 its commitments 8nde0 GATS T7e de0eg81ation po1ic6 o2 t7e go:e0nment o2 Pakistan 0ega0ding te1ecomm8nication secto0 7as 5een 7e1p281 in t7e opening o2 t7e te1ecomm8nication secto0 T7e Po1ic6 7asC
Increased service c oice )or customers o) telecommunication services at competitive and a))ordable rates. ,romoted in)rastructure developmentE especially in)rastructure t at 9ill increase tele'density and t e spread o) telecommunication services in all mar4et se!ments (includin! voiceE data and cellular etc). Increased private investment in t e telecommunication sector and encoura!e local telecom manu)acturin! B service industry. %ccelerated e0pansion o) telecommunication in)rastructure to e0tend telecommunication services to un'served and under' served areas. >iberali#ed t e telecommunication sector by encoura!in! )air competition amon!st service providers. Maintained an e))ective and 9ell'de)ined re!ulatory re!ime t at is consistent 9it international best practicesE andM maintained consistency 9it ,a4istanKs IT and Internet promotion policy o) lo9 prices )or band9idt to ma4e Internet access a))ordable. Sa)e!uarded ,a4istanKs national and security interests.
45&15IV I 'lications o# dereg%lation

A2te0 Decem5e0 t7is 6ea0G PTC. Ji11 1ose its monopo16 o:e0 2iDed 1ine te1ep7on6Q ana16sts sa6 t7e6 do not eDpect an6 se0io8s t70eat to PTC. 2o0 at 1east a 6ea0 a2te0 t7at T7e compan6As massi:e s8nk costs in in20ast08ct80e Ji11 5e 7a0d to top 56 an6 neJ ope0ato0 t7at Jo81d 5e 0e<8i0ed to matc7 t7e PTC. netJo0k ;8t ana16sts sa6 PTC. canAt p8t its 2eet 8p 0ig7t noJ Competition 2o0 PTC.As p851ic sJitc7 te1ep7one netJo0k ma6 5e 0est0icted to pa6p7ones and p0epaid ca11ing ca0dsG 58t 28t80e competition 2o0 PTC.As te1ep7on6 s6stem Jo81d 5e Ji0e1essG especia116 2iDed Ji0e1ess o0 Ji0e1ess 1oca1 1oop T7e pieces Ji11 a11 2a11 into p1ace in t7e neDt tJe1:e mont7s J7en eDact 0e:en8e g0oJt7 potentia1 o2 t7e secto0 Ji11 5ecome appa0ent ;8t t7e 0ea1 test Ji11 come 20om t7e ce1181a0 p7one ind8st06 2o0 PTC. PTC. ma6 a10ead6 7a:e a 7ead sta0t since it 7as in218enced t7e PTAAs decision to Jit7d0aJ t7e Rs 'G$$$ taD 1e:ied on neJ connections PTAG J7ic7 is a s85sid6 o2 PTC.G a1so p1ans to eDpand its ope0ations and 56 t7e end o2 t7e 6ea0 !92one is 1ike16 to mi1k t7e taD eDemption to o22e0 1*)G$$$ neJ connectionsG J7ic7 Jo81d inc0ease its c8stome0 5ase 20om 1$$G$$$ connections to '*)G$$$ connections T7e0e is :e06 1itt1e possi5i1it6 t7at an6 ot7e0 mo5i1e p7one compan6G 1ike Mo5i1inkG Pakte1 andG Instap7one Ji11 5e capa51e o2 o22e0ing so man6 connections 5eca8se t7e6 simp16 donAt 7a:e t7e capacit6 I2 t7is is t08e t7en PTC. mig7t s8cceedG e:en a2te0 p0i:ati=ation and in t7e 2ace o2 sti22 competitionG to get neJ c8stome0s 7ooked
9 +* 9
' 1' Pa/istan<s Commitments in (inancia, Ser1ices

Pakistan 7as stated in t7e opening o2 t7e pa0ag0ap7 o2 t7e sc7ed81e o2 speci2ic commitments in 2inancia1 se0:ices t7at its commitments 1aid doJn in t7e sc7ed81e a0e s85Kect to t7e a:ai1a5i1it6 o2 simi1a0 commitments 20om 1a0ge n8m5e0 o2 co8nt0ies o2 signi2icance to PakistanG and 2o0 t7ese 0easonsG Pakistan does not conside0 itse12 to 5e p0e:ented 20om adopting o0 en2o0cing non9disc0iminato06 meas80es aiming at p0otecting t7e so8ndness and integ0it6 o2 ;anking and Ins80ance ind8st06 T7e sc7ed81e co:e0s t7e 2inancia1 se0:ices catego0ies o2 Ins80ance and Ins80ance 0e1ated Se0:icesQ "inancia1 Se0:ices eDc18ding Ins80ance 3;ankingG .easingG Asset9ManagementG "inancia1 ? In:estment Ad:iso06 Se0:ices and p0o:ision and T0ans2e0 o2 2inancia1 in2o0mation and data4 In 0espect o2 t7e tJo modesG c0oss 5o0de0 s8pp16 and cons8mption a50oadG Pakistan 7as made no 5inding commitments Pakistan gene0a116 pe0mits 2o0eign in:estment in se0:icesG s85Kect to p0o:isions inc18ding a minim8m initia1 capita1 in:estment o2 S3$$G$$$ "o0eign in:esto0s ma6 7o1d 8p to a 1$$L e<8it6 stake at t7e o8tset #oJe:e0G 0epat0iation o2 p0o2its is 0est0icted to a maDim8m o2 ,$L o2 tota1 e<8it6 o0 p0o2itsG and &$L o2 e<8it6 m8st 5e 7e1d 56 Pakistani in:esto0s Jit7in 2i:e 6ea0s o2 t7e initia1 in:estment "o0eign in:estment not meeting t7ese 0e<8i0ements a0e sti11 pe0mittedG 58t a0e not g8a0anteed 0epat0iation o2 p0o2its In:estment po1ic6 a1so a11oJs 2o0eign in:esto0s and ot7e0 non9man82act80ing secto0s 3inc18ding inte0nationa1 2ood 20anc7ises4 to 0emit tec7nica1 2ees and 0o6a1tiesG a1t7o8g7 conditions app16 In in2o0mation tec7no1og6 se0:icesG inc18ding so2tJa0e de:e1opmentG 2o0eign in:esto0s ma6 7o1d a 1$$L e<8it6 stake In:esto0s in t7is 2ie1d a0e not s85Kect to t7e 0e<8i0ements 2o0 minim8m initia1 in:estment and &$L Pakistani e<8it6 Jit7in 2i:e 6ea0s
45&45I Ins%rance
T7e Pakistani go:e0nment 7as opened t7e Ins80ance ma0ket as one o2 its 2inancia1 secto0 0e2o0ms "o0eign in:esto0s a0e a11oJed to 7o1d a 1$$L e<8it6 3s85Kect to t7e 0e<8i0ement to esta51is7 &$L Pakistani e<8it6 in 2i:e 6ea0s4 s7a0e o2 companies ope0ating in t7e 1i2e and gene0a1 ins80ance secto0s T7e6 a0eG 7oJe:e0G 0e<8i0ed to 50ing in a minim8m o2 S'M in 2o0eign capita1 and 0aise an e<8a1 amo8nt in e<8it6 in 1oca1 ma0ket T7e0e a0e no 0est0iction on t7e 0epat0iation o2 p0o2it and capita1 in:estment made in t7e in t7is secto0 can 5e 0epat0iated Jit7 t7e pe0mission o2 t7e S;P Pakistan does not 0eg81ate ins80ance p0emi8ms T7e go:e0nment iss8ed a neJ ins80ance 1aJ in '$$$G 0aising capita1 ade<8ac6 standa0ds and en7ancing po1ic697o1ding p0otections Pakistan 7as a11oJed a maDim8m o2 ')L 2o0eign s7a0e 7o1ding in eDisting 1i2e ins80ance companies It 7as pe0mitted )1L 2o0eign e<8it6 in neJ 1i2e ins80ance companies
45&45II ;anking
9 ++ 9
T7e go:e0nment imp0o:ed its 2inancia1 se0:ices commitments in t7e WTO "inancia1 Se0:ices Ag0eement in Decem5e0 1--* T7ese commitments g0ant t7e 0ig7t to esta51is7 neJ 5anksG as Je11 as g0and2at7e0ing ac<8i0ed 0ig7ts o2 esta51is7ed 2o0eign 5anks and 2o0eign sec80ities 2i0ms T7e State ;ank o2 Pakistan 7as c7anged its 50anc7 1icensing po1ic6G and 7as e1iminated 0est0ictions on t7e n8m5e0 o2 50anc7es 2o0 2o0eign 5anks C800ent16 2o0eign 5anksG 1ike 1oca1 5anksG 7a:e to s85mit an ann8a1 50anc7 eDpansion p1an to t7e S;P 2o0 app0o:a1 T7e S;P app0o:es neJ 50anc7 openings 5ased on t7e 5ankAs net Jo0t7G ade<8ac6 o2 its capita1 st08ct80eG 28t80e ea0ning p0ospectsG c0edit discip1inesG and t7e needs o2 t7e 1oca1 pop81ation "o0eign 50oke0sG 1ike t7ei0 Pakistani co8nte0pa0tsG m8st 0egiste0 Jit7 t7e Sec80ities ? EDc7ange Commission o2 Pakistan
45&45III So e ot"er Co

it ents
"o0eign 5anks 7a:e 5een a11oJed to 8nde0take 58siness 56 setting 8p 1oca116 inco0po0ated s85sidia06 Jit7 &-L 2o0eign e<8it6 Ot7e0 e1igi5i1it6 c0ite0ia inc18ding minim8m capita1 0e<8i0ementG is t7e same as domestic comme0cia1 5anks "o0eign 5anks a0e a11oJed 8p to 3 50anc7es at t7e p1ace o2 t7ei0 c7oice In:estment in s7a0es o2 eDisting domestic 5anks is pe0mitted to 2o0eign nationa1sEI"Is 2o0 t0ading p80poses Rep0esentation o2 2o0eign nationa1s on t7e 5oa0d o2 di0ecto0s 7as 5een a11oJed in p0opo0tion to t7ei0 s7a0e 7o1dings Emp1o6ment o2 2o0eign nationa1s in 5anks and 2inancia1 instit8tions ope0ating in Pakistan 0e<8i0e p0io0 c1ea0ance o2 S;P "o0eign 5anks a0e a11oJed to set8p Koint :ent80es Jit7 1oca1 pe0sons Jit7 e<8it6 pa0ticipation 8p to )1L T0ansmission o2 pe0missi51e 28ndsG inc18ding 2o0eign c800enc6G can 5e e22ected t70o8g7 a8t7o0i=ed 5anking c7anne1s A11 comme0cia1 5anks a0e 0e<8i0ed to 5e mem5e0s o2 t7e c1ea0ing s6stem ope0atedEapp0o:ed 56 S;P "o0eign 1easing companies a0e pe0mitted to set8p s85sidia06 1easing 58siness Jit7 maDim8m tota1 s7a0e 7o1ding o2 )1L "o0eign 1icensed entities a0e a11oJed to 8nde0take po0t2o1io management se0:ices 56 setting 8p 1oca116 inco0po0ated s85sidia0ies Jit7 )1Ls7a0e 7o1ding P0io0 J0itten pe0mission is 0e<8i0ed 56 S;P 2o0 an6 pe0son 7o1ding mo0e t7an )Lo2 paid 8p capita1 o2 an6 5ankE"I
45&45IV <akistanGs M67 E$e 'tions

"o0eign Se0:ice p0o:ide0s a0e g0anted 1icense on t7e 5asis o2 0ecip0ocit6 "a:o0a51e t0eatment o2 instit8tions set 8p to 8nde0take Is1amic 2inancing Sepa0ate 0eg81ations 7a:e 5een c7a1ked o8t 2o0 5anks J7ic7 8nde0take t0eas806 28nctions 2o0 ot7e0 go:e0nment sc7emes
9 +- 9
"a:o0a51e t0eatment o2 "IsG J7ic7 7a:e 5een set8p 8nde0 t7e 20ameJo0k o2 economic coope0ation o0gani=ation 3ECO4
' 1) OPPORT*NITIES =ERS*S T"REATS

Empi0ica1 e:idence s7oJs t7at t70eats 20om 1i5e0a1i=ation a0e most16 s7o0t te0m in nat80e AcknoJ1edging Jeaknesses in t7e domestic 2inancia1 secto0 and de:ising 0e2o0ms to e0adicate t7em can s8ccess28116 mitigate t7ese ;ene2its acc08ing 20om 20ee t0ade 0e<8i0e g0eate0 deg0ee o2 competiti:eness "inancia1 1i5e0a1i=ation is a g1o5a1 0ea1it6 and its 2811 5ene2its can 5e 0eaped t70o8g7 p08dent se<8encing o2 1i5e0a1i=ation p0ocess and accompan6ing mac0o economic and 0eg81ato06 meas80es
45&25I O''ort%nities
Inc0eased competition 1eads to mac0oeconomic de:e1opmentG and 0e2o0m and 0est08ct80ing o2 domestic entities A1so 2aci1itates 0ed8ction in 8nit cost 56 p0omoting economies o2 sca1e Opening o2 2o0eign ma0kets 2o0 domestic 5anks 5ecomes easie0 It p0o:ides cons8me0s Jit7 a Jide c7oice o2 2inancia1 se0:ices and a11oJs 2aste0 access to mo0e ad:ance and 7ig7e0 <8a1it6 se0:ices and t0ans2e0 o2 tec7no1og6 and manage0ia1 ski11s
45&25II <ossible t"reats

"inancia1 1i5e0a1i=ation Jo81d 1ead to 1i5e0a1i=ation o2 capita1 acco8nt t7at can 0es81t in 21ig7t o2 capita1 Domestic se0:ice p0o:ide0s ma6 1ose t7ei0 compa0ati:e ad:antage "ast pace 1i5e0a1i=ation Jo81d 1ead to im5a1ances and mismanagement and 0ed8ction in ma0ket s7a0e o2 domestic entities Ski11ed 78man 0eso80ce is att0acted toJa0ds 2o0eign instit8tions .i5e0a1i=ation ma6 att0act in:esto0s o2 d85io8s 5ackg0o8nd
45&25III Mitigation o# t"reats

It Jo81d inc0ease competiti:eness t70o8g7 tig7te0 cost cont0o1s and imp0o:ing <8a1it6 o2 se0:ice Se0:iceG a peop1e o0iented secto0G 7ence de:e1oping o2 78man 0eso80ces is :ita1 2o0 competing Jit7 "o0eign Se0:ice p0o:ide0s .i5e0a1i=ation does not mean no c7ecks and 5a1ances It is impo0tant to 7a:e so8nd 0eg81ations and cont0o1s in p1ace 2o0 5anking secto0 it means a mo0e p0oacti:e 0o1e 56 S;P In addition to PakistanAs commitment 280t7e0 1i5e0a1i=ation 7as taken p1ace o:e0 t7e 6ea0s T7e 50anc7 mode o2 ent06 56 a 2o0eign constit8ent is no 1onge0 a11oJed T7e p0e2e0ences 2o0 Koint :ent80e s85sidia06G Jit7 2o0eign e<8it6 pa0ticipation 1imited to &-L T7e 5anks 20om ECO co8nt0ies and ot7e0 0egiona1 5odies s8c7 as SAARC Jo81d 5e gi:en p0e2e0entia1 t0eatment in t7is 0ega0d "o0eign 5anks a0e a11oJed to ope0ate 8p to
9 -$ 9
)$50anc7es ATMAs insta11ed in non 50anc7 1ocations a0e not t0eated as a sepa0ate 50anc7 A11 p08dentia1 0eg81ation is 8ni2o0m16 app1ica51e to 2o0eign 5anks as Je11 as 1oca1 5anks T7e0e is no disc0imination In addition to a8t7o0i=ed 5anksG 1icense eDc7ange companies a0e a1so a11oJed to t0ansmit pe0missi51e 28nds Comme0cia1 5anks a0e a11oJed to 8nde0take 1easing 58sinessG p0o:ided it s7o81d not 5e its maKo0 1ine o2 58siness Recent16 g8ide1ines 2o0 de0i:ati:e 58sinesses Jo81d 5e int0od8ced 2o0 5anks inc18ding 2o0eign 5anks
' 1+ Conc,usion
Negotiations on t7e GATS ag0eement Ji11 contin8eG 0ega0d1ess o2 J7at 7appens Jit7in Jide0 negotiations on a11 t7e Wo01d T0ade O0gani=ation ag0eements T7e impact o2 GATS co81d 5e s85stantia1G a sentiment s7a0ed not K8st 56 NGOs 58t a1so 56 co0po0ations and t7e WTO itse12 It is s85stantia1 5eca8se t7e se0:ices secto0 is g0oJing so 0apid16 and 5eca8se t7e ag0eementG in p0acticeG co:e0s in:estment as Je11 as c0oss95o0de0 t0ade T7e potentia1 costs a0e 7ig7C go:e0nments Ji11 8ndo85ted16 1ose some o2 t7ei0 a5i1it6 to 0eg81ateG not K8st in p0omoting domestic o:e0 2o0eign 2i0msG 58t a1so o:e0 domestic comme0cia1 acti:it6 itse12 T7e potentia1 5ene2itsG pa0tic81a016 to de:e1oping co8nt0iesG a0e 1oJ Pakistan 7as em5a0ked 8pon st08ct80a1 0e2o0ms since t7e ea016 -$s !nde0 t7e 0e2o0m po1ic6 meas80es o2 t7e 0eg81ation and de9cont0o1G p0i:ati=ationG 2inancia1 0est08ct80ingG 2o0eign eDc7ange adK8stment and 1i5e0a1 mo5i1it6 o2 capita1 7as 5een p80s8ed in 0ea1 as Je11 as se0:ices secto0 T7e co8nt06 7as inc18ded siD secto0s 3pa0tia1164 in its sc7ed81e o2 secto0s speci2ic commitments T7ese commitments 0e:ea1 t7at t7e co8nt06 7as a11oJed some access in se0:ices secto0 Man6 de:e1opments and c7anges 7a:e taken p1ace in 0eg81ationG in:estment and t0ade in se0:ices d80ing as Je11 as a2te0 t7e !RA In Pakistan and some o2 t7em as pa0t o2 imp1ementation o2 its GATS o51igations Pakistan cannot gain28116 compete in se0:ices Jit7 de:e1oped co8nt0ies and t7e t0ade 1i5e0a1i=ation meas80es taken 56 t7e de:e1oped co8nt0ies 7ad 1itt1e e22ect on PakistanAs econom6 "8t80e p0ospects o0 gains 2o0 Pakistan 8nde0 t7e GATS 1ie in t7e mo:ement o2 nat80a1 pe0sons 3mode & Se0:ice S8pp164 5eca8se t7e co8nt06 7as s80p18s 1a5o80 !n2o0t8nate16G Mode & 7as 5een gi:en disc0iminato06 t0eatment compa0ed to t7e ot7e0 t70ee modes o2 se0:ices s8pp16 in t7e mem5e0 co8nt0iesA secto0s speci2ic commitments T70ee 5a00ie0s in t7e Ja6 o2 20ee0 mo5i1it6 o2 nat80a1 pe0sons inc18de t7e 8se o2 ENTsG m81tip1e <8a1i2ications and 1icensing 0eg81ationsG and non9t0anspa0ent :isa and Jo0k pe0mit 0egimes T7ese 5a00ie0s 7a:e to 5e 0emo:ed to ens80e t7e 5ene2its o2 t7e GATS t70o8g7 1i5e0a1i=ation o2 t0ade and se0:ices 8nde0 mode & Apa0t 20om 0emo:ing t7ese 5a00ie0s to mo:ement o2 nat80a1 pe0sonsG t7e iss8es J7ic7 7a:e to 5e add0essed 2o0 280t7e0 1i5e0a1i=ation o2 t0ade in se0:ices and en7ancing t7e p0ospecti:e 5ene2its o2 t7e GATS 8nde0 28t80e negotiation inc18de conso1idation and stock9taking o2 t7e 0es81ts o2 t7e m81ti91ate0a1 negotiationsG 2iDing speci2ic time920ame and speci2ic indicato0s 2o0 meeting t7e GATS o51igationsG monito0ing o2 gains 20om t7e
9 -1 9
GATS 2o0 t7e mem5e0 co8nt0iesG p0e2e0entia1 t0eatment o2 de:e1oping co8nt0iesG and 2inancia1 and tec7nica1 assistance 2o0 58i1ding knoJ97oJ and instit8tiona1 capacit6 o$2 de:e1oping co8nt0ies ena51ing t7em to e22ecti:e16 pa0ticipate in t7e imp1ementation o2 t7e GATS and its 28t80e negotiations Reso18tion o2 t7ese iss8es Jo81d go a 1ong Ja6 toJa0ds 0ea1i=ing t7e c7e0is7ed goa1s o2 t7e GATSG especia116 2o0 a de:e1oping co8nt06 1ike Pakistan
9 -' 9
;ibliogra'"! and Re#erences

1 ' 3 & ) , * + NT e 8T< *e!ime and Implications )or ,a4istan O Pakistan Instit8te o2 .egis1ati:e De:e1opment and T0anspa0enc6G ;0ie2ing Pape0G A8g8st '$$3 N% andboo4 on 8T<' 9it special re)erence to ,a4istan OG Resea0c7 and Economic De:e1opment Ce11G KCCIG '$$3 NTari)) *ationali#ation Study'Islamic *epublic o) ,a4istan OG T7e Wo01d ;ankG Ap0i1 3$t7G '$$& NImpact o) post'%T& /nvironment on ,a4istan6s Te0tile TradeOG !NDPG No:em5e0 '$$3 NT e impact o) 8T< on various sectors in ,a4istan OG Pakistan Administ0ati:e Sta22 Co11egeG +1st NMC G S6ndicate Repo0t IIIG 31st ma6913 Octo5e0 '$$& NImplications For ,a4istan o) %bolis in! Te0tile %nd &lot in! /0port :uotas OG Wi11 Ma0tinG T7e Wo01d ;ankG Ap0i1 3$t7G '$$& NTrade and industrial policy in ,a4istan7 ,ost'?ru!uay *ound & allen!esOG M S7a8kat A1iG Pape0 p0epa0ed 2o0 t7e Wo01d ;ankAs WTO9'$$$ P0oKectG @an '$$$ NIndicators o) t e *elative Importance o) I,*s In (evelopin! &ountries OG 56 SanKa6 .a11 and Man8e1 A15a1adeKoG Wo0king Pape0 N8m5e0 +) p0epa0ed 2o0 t7e !NCTAD9ICTSDG Ap0i1 '$$' NTrade ,olicies in Sout %sia7 %n overvie9OG T7e Wo01d ;ankG @8ne '$$3 1$ NT e /conomic Survey o) ,a4istan. 200.'01O 11 N%!ricultureE TradeE and t e 8T< in Sout %sia OG Me01inda D IngcoG T7e Wo01d ;ankG'$$$ 1' N,a4istan and t e A%TS 7 %n assessment o) policies and )uture prospects O G D0 M8s7ta< A7madG 13t7 "e508a06G'$$$ 13 NA%TS 2000 Ne!otiations7 ,otions For (evelopin! &ountriesOG Mina Mas7a6ek7iG So8t7 Cent0eG T0ade MRe1ated AgendaG De:e1opment and E<8it6 3T R A D E4 Wo0king Pape0s -G Decem5e0 '$$$ 1& N?nderstandin! t e 8T<OG 30d EditionG Wo01d T0ade O0gani=ationG SeptG '$$3 1) NNon'&ompliance and ultimate remedies under t e 8T< dispute settlement systemOG Asim Imdad A1iG T7e Ci:i1 Se0:ices Academ6 G .a7o0e
9 -3 9
1, NAlobali#ation and ,a4istan6s Trade ,rospects under t e 8T< OG Ta0i< Sa6eed Saigo1G C7ai0man Ko7inoo0 Map1e .ea2 G0o8pG @an8a06 '3G '$$3 1* !STR Re:ieJ o2 PakistanAs T0ade Po1ic6 '$$' 1+ WTO Re:ieJ o2 PakistanAs T0ade Po1ic6 1- NTrade Secrets7 t e e0port ans9erOG a8t7o0 SMEDA '$ N%!riculture and 8T<OG a8t7o0 IngcoG '$$& '1 NInternational /conomicsO a8t7o0 So0an '' T0ade Po1ic6 o2 Pakistan '$$'9$3 and '$$39$& ? TeDti1e /ision '$$) '3 T0ade NoteG NServices in a (evelopment *oundOG Aadit6a MattooG Sept 1$G '$$3 '& N(o a *ound +rie)in! SeriesE Trade in ServicesOG ICTSD and IISDG A8g8st '$$3 ') N8T<7 Duly Frame9or4 %!reed %t /levent =ourOG ;0idges Week16 T0ade NeJs Digest M /o1 +G N8m5e0'*G 30d A8g8stG '$$& ', NT e (evelopment (imensions o) TradeOG OECDG '$$1 '* N,a4istan 4nittin! its 9ay in t e !lobal TN& sectorOG EDpo0t TimesG Ma6'$$& '+ N*eal Trade Ne!otiations Still >ie % eadOG T7e "inancia1 TimesG 1 A8gG '$$& '- Inte0:ieJ 56 #ina Ra55ani K7a0G p851is7ed in T7e #e0a1dG "e508a06 '$$& 3$ N8T< and ,a4istan7 8 at6s to resist5OG T7e #e0a1dG "e508a06 '$$& 31 Economic S80:e6 o2 PakistanC /a0io8s Iss8es 3' N"o0eign T0ade o2 Pakistan 3Commodit6 56 Co8nt064OG An EP; ann8a1 p851icationG /a0io8s iss8es 33 NPakistanAs EDpo0ts o2 P0incipa1 CommoditiesOG An EP; ann8a1 p851icationG /a0io8s iss8es 3& N"o0eign T0ade o2 Pakistan '$$$9'$$$1OG EP; 3) JJJ Jto o0g
9 -& 9

WTO Regime and Its Impact On Pakistan

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

WTO Regime and Its Impact On Pakistan

Uploaded by

Copyright:

Available Formats

31ST COMMON TRAINING PROGRAMME

WTO REGIME AND ITS IMPACT ON PAKISTAN

CIVIL SERVICES ACADEMY, LAHORE

WTO Regime and its Impact on Pakistan

31ST COMMON TRAINING PROGRAMME CONTENTS

CHAPTER TWO ! INDUSTRIAL SECTOR................................................................................ #

WTO Regime and its Impact on Pakistan

' & CONC.!SION AND RECOMMENDATIONS

WTO Regime and its Impact on Pakistan

1.7.II Implementation related issues............................................................................................30

WTO Regime and its Impact on Pakistan

WTO Regime and its Impact on Pakistan

WTO Regime and its Impact on Pakistan

*1 )#1 )1A W$O W/"O WTO

WTO Regime and its Impact on Pakistan

WTO Regime and its Impact on Pakistan

WTO Regime and its Impact on Pakistan

S76! G+(78 II Mem5e0s

S76! G+(78 III Mem5e0s

S76! G+(78 IV Mem5e0s

WTO Regime and its Impact on Pakistan

Met"odolog! #or Researc"

WTO Regime and its Impact on Pakistan

WTO Regime and its Impact on Pakistan

WTO Regime and its Impact on Pakistan

& C"a'ter One ( Introd%ction to )*O 11 Introduction

WTO Regime and its Impact on Pakistan

Import $uotas and Tariffs

T7e WTO Regime and Imp1ications 2o0 Pakistan

WTO Regime and its Impact on Pakistan

WTO Regime and its Impact on Pakistan

Ar&uments for Protection

WTO Regime and its Impact on Pakistan

#hy a need for (ree Trade

WTO Regime and its Impact on Pakistan

*nderstandin& the #TO

!nde0standing T7e WTO '$$3

WTO Regime and its Impact on Pakistan

Guidin& Princip,es of #TO

WTO Regime and its Impact on Pakistan

7ational *reat ent

&535III Stabilit! and 'redictabilit! t"ro%g" binding

A&reements Concernin& Trade in Goods

WTO O22icia1 Je5 site

WTO Regime and its Impact on Pakistan

Agree ent on Anti(D% 'ing

&505III Agree ent on Sa#eg%ards

&505IV Agree ent on *rade Related Invest ent Meas%res 8*RIMS9

WTO Regime and its Impact on Pakistan

*"e State o# Market Access as a Res%lt o# )*O %

&5&, Do"a Develo' ent Agenda

&5&,5I I 'le entation(related iss%es and concerns

Data 20omC % =andboo4 on 8T<' 9it Special re)erence to ,a4istanG KCCI

WTO Regime and its Impact on Pakistan

1.10.I., G/*/+,: A.+//)/*' (* T,+-99& ,*1 T+,1/ <GATT=

1.10.I.6 S,*-',+0 ,*1 850'(&,*-',+0 <SPS= )/,&7+/&

1.10.I.2 T/25*-2,: 6,++-/+& '( '+,1/

WTO Regime and its Impact on Pakistan

1.10.I.1 T+,1/!+/:,'/1 -*3/&')/*' )/,&7+/& <TRIM&=

1.10.I./ A*'-!17)8-*. <GATT A+'-2:/ 6=

1.10.I.9 S76&-1-/& ,*1 2(7*'/+3,-:-*. )/,&7+/&

1.10.I.. T+,1/!+/:,'/1 ,&8/2'& (9 -*'/::/2'7,: 8+(8/+'0 +-.5'& <TRIPS=

1.10.I.5 F-*,: 8+(3-&-(*&

&505IV Agree ent on rade Related Invest ent Meas%res 8RIMS9

"e State o# Market Access as a Res%lt o# )O %

1.10.I., G//+,: A.+//)/' (* T,+-99& ,*1 T+,1/ <GATT=

1.10.I.6 S,-',+0 ,1 850'(&,*-',+0 <SPS= )/,&7+/&

1.10.I.1 T+,1/!+/:,'/1 -3/&')/' )/,&7+/& <TRIM&=

1.10.I./ A'-!17)8-. <GATT A+'-2:/ 6=

1.10.I.9 S76&-1-/& ,1 2(7'/+3,-:-*. )/,&7+/&

1.10.I.5 F-,: 8+(3-&-(&

.$.II.1 M,25-/+0 E:/2'+-2,: ,1 N(* E:/2'+-2,:

.$.II.9 T+,&8(+' E>7-8)/'

Alobal rade in BC = s"are

EL-6/+,:-?-. T+,1/ - T/;'-:/& ,1 C:('5-. 4 A &7+3/0 (9 >7,*'-','-3/ &'71-/&,OECD, 00$F

<akistan BC rade +,,1

1--++ $& + $1 , ,& 1' -1 *3 -,

'$$$ +) -1 + ), 3 ++ &3 -& *, ,)

'$$1 +& 3' + '' - ,' 3' &3 *& 3'

'$$' +) 1* , &) & 3+ &, * *) 31

Appa0e1 ) & $ $) 11 , '$ $&, '$ '3