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ﺑﺴﻡﺍﷲﺍﻠﺮﺤﻤﻦﺍﻠﺮﺤﻴﻢ In The Name Of Allah most Beneficent The most Merciful PRESENTED BY: MUHAMMAD ADNAN HYE.

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Presentation on theme: "ﺑﺴﻡﺍﷲﺍﻠﺮﺤﻤﻦﺍﻠﺮﺤﻴﻢ In The Name Of Allah most Beneficent The most Merciful PRESENTED BY: MUHAMMAD ADNAN HYE."— Presentation transcript:

1 ﺑﺴﻡﺍﷲﺍﻠﺮﺤﻤﻦﺍﻠﺮﺤﻴﻢ In The Name Of Allah most Beneficent The most Merciful PRESENTED BY: MUHAMMAD ADNAN HYE

2 WTO and Pakistan: opportunities and policy challenges.

3 In 1930 Smoot-Hawley tariff act under which the average import duty in the U S A reached the all time high of 59% in 1930, provoking foreign retaliation. In 1932, 60 countries retaliated with stiff tariff increases of their own, in the face of the deepening world depression. The result was a collapse of world trade and this contributed in a significant way to the spreading and the deepening of the depression around the world. Trade agreement act of 1934 Trade legislation were based on the most-favored nation

4 YearPlace/ Name Number of participating country Subject covered % cut in Tariffs 1947Geneva23Tariffs21 1949Annecy13Tariffs2 1951Torquay38Tariffs3 1956Geneva26Tariffs4 1960-61 Geneva (Dillon round) 26Tariffs2 The GATT TRADE Rounds, 1947-93

5 1964-67Geneva ( Kennedy Round) 62Tariffs and antidumping measures 35 1973-79Geneva ( Tokyo Round) 102Tariffs, non-tariff measures, Multilateral measures 33 1986-93Geneva ( Uruguay Round) 123Tariffs, non- tariff measures, agriculture, services, textiles Intellectual property, dispute Settlement, creation of WTO 34 SOURCE: WTO newsletter ( Geneva, May 1998 ), P.2

6 OPPORTUNITIES: With the implementation of the agreement Pakistan’s major exports would receive significant tariff reduction from the DC’s and the LDC’S.

7 Pakistani exports will face a weighted average post-round tariff

8 AGREEMENT ON TEXTILE AND CLOTHING The multi-fiber agreement (MFA) is an arrangement to manage textile and clothing trade. The MFA allotted quotas to regulate imports of textiles and clothing into developed countries from developing countries. MFA applies to 80% of the world textile and clothing exports with around 40% participants and 100 bilateral restraint agreements. MFA quotas have thus led to a loss in the export earnings of developing countries.

9 The textile and clothing sector in PAKISTAN is an important segment of the economy.It accounts for 8% of GDP and 30% of the value added and 40% of the labor force in the manufacturing sector and the 75% of merchandise exports. The MFA Is clearly discriminatory and thereby openly violates the basic principal of the WTO.Pakistan’s textile and clothing exports are largely directed towards quota countries, particularly the high value added products whose quota utilization rate are very high.

10 (Percentage) Good Non-quota countries Quota countries Quota utilization Yarn 95 5 99.40 Fabrics 72 28 99.80 Made-ups 71 98.10 PERCENTAGE




14 In case of clothing



17 Gains from trade liberalization Scenario-1Scenario-2 5001300

18 AGREEMENT ON AGRICULTURE The implementation of the agreement Ingco and winters (1995) predict that for Pakistan’s major agricultural imports real prices Decrease Price Increase Price 3.8% 2.1% 1.8% 1.2% 0.9% wheatCourse Grainsugar Cotton Rice

19 There will be welfare losses for Pakistan due to agriculture trade liberalization 27.2 Million US$ 43 Million US$ Through ReformsPotential Induce Investment and increasing returns in the sector are also taken into account

20 GENERAL AGREEMENT ON TRADE IN SERVICES In this agreement, first round of negotiations has achieved limited liberalization; however it has opened the door of liberation in future. Participation in GATS provides opportunity to increase the efficiency in service sectors. Greater access to higher quality service inputs. Market access for its own competitive service exports such as construction service and professional service (Low wage skill labor)

21 Possible CommitmentsMade commitments 620 108

22 35.2% 27.8% No national treatment limitation No market access limitation

23 Agreement on trade – related investment measures The TRIM’S agreement prohibits a number of conditions which government often imposes on foreign investment to encourage investment in accordance with national priorities. Under agreement: Pakistan attracts foreign investment by extending many attractive incentives to foreigners. i.e. Tariff exemptions To induce multinational enterprises to meet a minimum level of performance criteria. With the removal of restrictions on foreign investment, Pakistan may be successful in attracting more foreign investment.

24 Agreement on trade-related intellectual property rights With implementations of this, increases demand for royalty payments and restrictions on the transfer of technology. Dynamic gains is that increase in the supply in the foreign knowledge and technology under the TRIPs environment should stimulate the domestic R & D activities and ultimately promote the technological-led development in the country.

25 POLICY CHALLENGES Textiles and clothing Agriculture Services Agreement on trade- related investment measure Agreement on trade-related intellectual property rights Dumping issues Eco-and social-dumping issues

26 A strategic direction


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