The Fate of Doha Development Agenda

Pakistan and Doha Round
    
Pakistan is actively participating in the Negotiations, individually as well as in association with other developing countries. Its objective is to get greater market access for its goods and services, promote and protect its agricultural and manufacturing sectors and ensure a rule-based trading system. It is deeply concerned with issues relating to agriculture, non-agriculture market access and services trade.

Agriculture
    
Pakistan, being a predominantly agricultural economy, has substantial potential for export in agriculture. Access to international market is currently restricted owing to tariff and non-tariff barriers, export subsidies and domestic support measures, in particular in the USA, European Union and other developed countries. Pakistan is therefore collaborating with other agriculture exporting countries in various groups like ‘Cains Group’ and ‘Group of 33” in seeking greater market access, elimination of export subsidies and reduction of domestic support measures in USA, EU and other highly protected markets. It has also collaborated with other developing countries in devising common strategy on such matters as indicators for selection of Special Products (i.e. products exempted from duty reduction) and Special Safeguard Mechanism for developing countries. Pakistan would benefit from successful conclusion of Talks.
 
Pakistan had bound its import tariff on agricultural products at100 percent as against the existing tariff of 25 percent under the Uruguay Round. It may have to further improve it and desist from taking actions which are not compatible with WTO commitments (like trade distorting subsidies) in return for the vast openings for its products in other markets.        

Non-Agriculture Market Access

Pakistan has bound about 25 percent of its tariff lines at rates ranging from 100 to 20 percent under the Uruguay Round; as the prevailing rate are higher than the bound rate Pakistan has some elbow-room for negotiation. Pakistan’s commitment should take into account the position of domestic industry, implications of Swiss Formula and the coefficient to be agreed for reduction of tariffs by developing countries, and the market access that other trading partners will offer to it. Its interest is in elimination of tariff peaks, tariff escalation and non-tariff barriers on products of export interest (like textiles, clothing, leather goods, cotton, rice and fruits) in other markets.

Services Trade

Pakistan has assumed MFN general obligation with some exemptions in finance and telecommunication sectors and made specific commitments in six services sectors under the Uruguay Round. Under the Doha Round, it had made ‘Initial Offer’ based on the ‘Requests’ received from trading partners. It had also submitted ‘Requests’ to other members prepared in consultation with domestic stakeholders. In addition, plurilateral ’Requests’ had been submitted in association with other countries that had similar export interest.

Pakistan’s main interest is in obtaining liberalized commitments in mode 4 (movement of Natural Persons) as it has potential for export of manpower.