Wto Training Worskhop by reWize

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International Trade and theInternational Trade and theWTOWTO

WTO An IntroductionWTO An IntroductionGATT:GATT: Negotiations on Agriculture in theNegotiations on Agriculture in theWTOWTO

NAMA Negotiations in the WTONAMA Negotiations in the WTO

GATSGATS

TRIPS TRIPSRegulatory Framework in Pakistan &Regulatory Framework in Pakistan &NTCNTC

RegionalismRegionalism


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ByByAbdul Aleem KhanAbdul Aleem Khan

Economist, Advisory Unit,Economist, Advisory Unit,WTO Cell, TDAPWTO Cell, TDAP

WTO An IntroductionWTO An Introduction


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WTO WTO An Introduction An Introduction (cont. 3)

(cont. 3)

GATT came into force in1948 with 23GATT came into force in1948 with 23

founding members.founding members.

It was intended to promoteIt was intended to promote

nondiscrimination in trade amongnondiscrimination in trade amongcountries, with the view that open tradecountries, with the view that open tradewas crucial for economic stability andwas crucial for economic stability andpeace.peace.

Different trade rounds were held so asDifferent trade rounds were held so asto liberalize the trade.to liberalize the trade.


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GATT and WTO Trade RoundsGATT and WTO Trade Rounds11 stst Round -Round - Geneva in 1947Geneva in 1947

23 Countries participated 23 Countries participated Decided to cut 45,000 trade tariffsDecided to cut 45,000 trade tariffs

22 ndnd Round -Round - France in 1949France in 194913 Countries participated 13 Countries participated Proposed further reductions in 5,000 tariffsProposed further reductions in 5,000 tariffs

33 rdrd Round -Round - Britain in 1950-51Britain in 1950-5138 Countries participated 38 Countries participated Proposed further reductions in 8,700 tariffsProposed further reductions in 8,700 tariffs

44 thth Round -Round - Geneva in 1955-56Geneva in 1955-5626 Countries participated 26 Countries participated Proposed to Cut Custom Tariffs with a total value of US$2.5 bnProposed to Cut Custom Tariffs with a total value of US$2.5 bn

55 thth Round -Round - (Dillion Round) in Geneva in 1960-62(Dillion Round) in Geneva in 1960-6226 Countries participated 26 Countries participated Proposed to cut 4,400 tariffs covering US$.9 bn worth of tradeProposed to cut 4,400 tariffs covering US$.9 bn worth of trade

66 thth Round -Round - (Kennedy Round) in Geneva in 1964-67(Kennedy Round) in Geneva in 1964-6762 Countries participated 62 Countries participated Decided on substantial tariffs reductions on all industrial productsDecided on substantial tariffs reductions on all industrial products

covering US$40bn of trade.covering US$40bn of trade.


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GATT and WTO GATT and WTO Trade Rounds Cont 2 Trade Rounds Cont 2

77 thth RoundRound -- (Tokyo Round) in Geneva in 1973-79(Tokyo Round) in Geneva in 1973-79102 countries participated 102 countries participated

-Customs cuts averaging 20% to 30% covering US$300 bn-Customs cuts averaging 20% to 30% covering US$300 bn- Improved framework for subsidies, customs rates and - Improved framework for subsidies, customs rates and

technical obstacles to trade.technical obstacles to trade.

88 thth Round -Round - (Uruguay Round) started in Uruguay ended in Morroco 1986-94(Uruguay Round) started in Uruguay ended in Morroco 1986-94123 countries participated 123 countries participated The round led to the creation of WTO, and extended the range of The round led to the creation of WTO, and extended the range of

tradetrade negotiations, leading to major reductions in tariffs (about negotiations, leading to major reductions in tariffs (about 40%) and 40%) and agricultural subsidies, an agreement to allow fullagricultural subsidies, an agreement to allow fullaccess for textiles and access for textiles and clothing from developing countries, and anclothing from developing countries, and anextension of intellectual property extension of intellectual property rights.rights.

99 thth Round -Round - (Doha Round) started - in Doha in 2001 ( at forth Ministerial(Doha Round) started - in Doha in 2001 ( at forth MinisterialConference)Conference)

- in Cancun in 2003 (at fifth Ministerial Conference)- in Cancun in 2003 (at fifth Ministerial Conference)- in Hong Kong in 2005 (at sixth Ministerial- in Hong Kong in 2005 (at sixth Ministerial

Conference)Conference)- in Geneva in July 2006 (at seventh Ministerial- in Geneva in July 2006 (at seventh Ministerial

ConferenceConference Not yet concluded.Not yet concluded.

141 countries participated,141 countries participated,

Subject covered are tariffs, non-tariffs measures, agriculture, labour Subject covered are tariffs, non-tariffs measures, agriculture, labour standards,standards, environment, competition, investment, transparency,environment, competition, investment, transparency, patents etc. patents etc.


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WTO AgreementsWTO A greementsAgreement on AgricultureAgreement on Agriculture

Agreement on Textiles & Clothing (ATC)Agreement on Textiles & Clothing (ATC)

Agreement on Subsidies and Countervailing MeasuresAgreement on Subsidies and Countervailing Measures

Agreement on Anti-DumpingAgreement on Anti-Dumping

Agreement on SafeguardsAgreement on Safeguards

Agreement on Trade Related Investment Measures (TRIMs)Agreement on Trade Related Investment Measures (TRIMs)

Agreement on Custom ValuationAgreement on Custom Valuation

Agreement on Technical Barriers to Trade (TBT) and on Sanitary and PhytosanitaryAgreement on Technical Barriers to Trade (TBT) and on Sanitary and PhytosanitaryMeasures (SPS)Measures (SPS)

Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)

General Agreement on Trade in Services (GATS)General Agreement on Trade in Services (GATS)

Understanding on Dispute Settlement (DSU)Understanding on Dispute Settlement (DSU)

Special & Differential Treatment ( S& D )Special & Differential Treatment ( S& D )


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GATTGATTNegotiations onNegotiations on

Agriculture in the WTOAgriculture in the WTOPresentation by:Presentation by:

Mujeeb Ahmed KhanMujeeb Ahmed KhanHead WTO CellHead WTO Cell

Trade Development Authority of Trade Development Authority of PakistanPakistan


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Special and Differential treatment for Special and Differential treatment for developing countriesdeveloping countries

S & D is an integral element of the negotiations,S & D is an integral element of the negotiations,and taking into account the possible negativeand taking into account the possible negativeeffect of the implementation of the reformeffect of the implementation of the reformprogramme on least-developed and net food-programme on least-developed and net food-importing developing countries.importing developing countries.While implementing their commitments theWhile implementing their commitments thedeveloped countries to take fully into account thedeveloped countries to take fully into account theparticular needs and conditions of developingparticular needs and conditions of developingcountries.countries.Greater market access for agriculture products of Greater market access for agriculture products of particular interest to developing countries.particular interest to developing countries.Fullest liberalization of trade in tropical productsFullest liberalization of trade in tropical productsand products of importance to the diversificationand products of importance to the diversificationof production from the growing of illicit narcoticof production from the growing of illicit narcoticcrops.crops.


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Reduction commitments in the UruguayReduction commitments in the UruguayRoundRound

Developed DevelopingDeveloped Developing

(1995-2000)(1995-2004)(1995-2000)(1995-2004)

Market AccessMarket AccessAverage tariff cuts for all ag.products -36% -24%Average tariff cuts for all ag.products -36% -24%Minimum tariff cuts per product -15% -10%Minimum tariff cuts per product -15% -10%

Domestic SupportDomestic SupportTotal cuts in aggregate measurement of Total cuts in aggregate measurement of support -20% -13%support -20% -13%

Export SubsidiesExport SubsidiesValue cut -36% -24%Value cut -36% -24%Volume Cut -21% -14%Volume Cut -21% -14%


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Domestic Support (contd)Domestic Support (contd)

De minimis support;De minimis support;

Allowed WTO Members to exempt from theAllowed WTO Members to exempt from the

calculation of the AMS, below a certain thresholdcalculation of the AMS, below a certain thresholdlevel;level;- Developed countries: 5% of the value of - Developed countries: 5% of the value of agricultural production of the productagricultural production of the productconcerned and 5% of total value of agriculturalconcerned and 5% of total value of agriculturalproduction.production.

- Developing countries: 10% of the value..- Developing countries: 10% of the value..


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The Doha Mandate for negotiationsThe Doha Mandate for negotiations

We commit ourselves to comprehensiveWe commit ourselves to comprehensivenegotiations aimed at:negotiations aimed at:

Substantial improvement in MARKET ACCESS;Substantial improvement in MARKET ACCESS;

Reductions of, with a view to phasing out, allReductions of, with a view to phasing out, allforms of EXPORT SUBSIDIES;forms of EXPORT SUBSIDIES;

Substantial reductions in trade distortingSubstantial reductions in trade distortingDOMESTIC SUPPORT.DOMESTIC SUPPORT.


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Negotiating priorities for PakistanNegotiating priorities for Pakistan

Highest possible tariff reductions. (even U.SHighest possible tariff reductions. (even U.Sproposal for 55%-90% for developed and slightlyproposal for 55%-90% for developed and slightlyless for developing)less for developing)

Maximum tariff caps.(75% for developed andMaximum tariff caps.(75% for developed and100% for developing)100% for developing)

Expansion of tariff rate quotas. (from the currentExpansion of tariff rate quotas. (from the current5% to 20% of domestic consumption, with and5% to 20% of domestic consumption, with andend-date agreed for their eventual elimination)end-date agreed for their eventual elimination)


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Negotiating priorities for Pakistan (contd)Negotiating priorities for Pakistan (contd)

The TRQ in-quota tariffs should be eliminated The TRQ in-quota tariffs should be eliminatedwhere substantial under fill exists.where substantial under fill exists.

Sensitive products must be limited to maximumSensitive products must be limited to maximumof 1% -2% of all tariff lines.of 1% -2% of all tariff lines.

Special products must be limited to 2% - 3% of allSpecial products must be limited to 2% - 3% of alltariff lines.tariff lines.

A Special Safeguard Mechanism, with strict andA Special Safeguard Mechanism, with strict andtransparent guidelines.transparent guidelines.


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Negotiating priorities for Pakistan (contd)Negotiating priorities for Pakistan (contd)

Capping of the Blue box at 2.5% of the value of Capping of the Blue box at 2.5% of the value of production.production.

Commitment to review the Green and Blue boxCommitment to review the Green and Blue boxcriteria to ensure that these programs are trulycriteria to ensure that these programs are trulynon-trade distorting and production limiting.non-trade distorting and production limiting.

Possibility of a cap on Green Box expenditures.Possibility of a cap on Green Box expenditures.

Elimination of all forms of export subsidies,Elimination of all forms of export subsidies,including subsidy elements of export credits,including subsidy elements of export credits,state trading and food aid.state trading and food aid.


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ByBy

Tippu Sultan Tippu Sultan

Head Advisory Unit, WTO CellHead Advisory Unit, WTO Cell TDAP TDAP

NAMA NegotiationsNAMA Negotiationsin the WTOin the WTO


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WTO NAMA Negotiations :WTO NAMA Negotiations : (Non Agriculture Market Access)(Non Agriculture Market Access)

Challenges and opportunities for PakistanChallenges and opportunities for Pakistan

The Doha Ministerial Declaration requires that The Doha Ministerial Declaration requires thatnegotiations should aim by modalities to be agreednegotiations should aim by modalities to be agreedupon toupon to

c)c) Reduce or eliminate tariffsReduce or eliminate tariffs

e)e) Reduce or eliminate tariff peaksReduce or eliminate tariff peaks

g)g) Reduce or eliminate non tariff barriersReduce or eliminate non tariff barriers

i)i) Not exclude any productsNot exclude any products

k)k) Allow less than full reciprocity to developingAllow less than full reciprocity to developingcountries in making reduction commitments.countries in making reduction commitments.


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NAMA Tariff Cut formulasNAMA Tariff Cut formulas The United States (US) has proposed to use simple Swiss The United States (US) has proposed to use simple Swissformula with a negotiated coefficient.formula with a negotiated coefficient.

The US elaborated that there could be two coefficients, one The US elaborated that there could be two coefficients, oneseparately applied by developing countries and another appliedseparately applied by developing countries and another appliedby developed countries.by developed countries.

The Simple Swiss formula is expressed as follows: The Simple Swiss formula is expressed as follows:

Final tariff =Final tariff = Coefficient (a) x Initial tariff Coefficient (a) x Initial tariff Coefficient (a) + Initial tariff Coefficient (a) + Initial tariff

Where the:Where the:

Initial tariff Initial tariff is the bond rate, as listed in national schedules, andis the bond rate, as listed in national schedules, and

Coefficient Coefficient is a figure to be negotiatedis a figure to be negotiated


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Different Proposals . ContDifferent Pro posals . Cont

Coefficient proposed by Pakistan:Coefficient proposed by Pakistan:At the mini-ministerial meeting held in China,At the mini-ministerial meeting held in China,Pakistan put forward a proposal to bridge thePakistan put forward a proposal to bridge thedifference between the supporters of thedifference between the supporters of theSimple Swiss formula and the supporters of Simple Swiss formula and the supporters of the ABI formula.the ABI formula.

The coefficients proposed by Pakistan would The coefficients proposed by Pakistan wouldbe aroundbe around a = 6a = 6 for developed countries andfor developed countries andaroundaround a = 30a = 30 for developing countriesfor developing countries


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Pakistans position after NAMAPakistans position after NAMANegotiationsNegotiations

Pakistan is fairly comfortably place in thisPakistan is fairly comfortably place in thisnegotiation, because:negotiation, because:

d)d) Our tariff rates are relatively lowOur tariff rates are relatively low

f)f) We are hardly giving any subsidy We are hardly giving any subsidy

h)h) Our reliance on custom revenue hasOur reliance on custom revenue hasreduced drastically and constitutes only reduced drastically and constitutes only 15% of our total revenue.15% of our total revenue.


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ConclusionsConclusions

In order to get greater market access, we would In order to get greater market access, we would like to see:like to see:

c)c) Tariff reductions by other developing countriesTariff reductions by other developing countries

e)e) Reduction / elimination of peak tariffs inReduction / elimination of peak tariffs indeveloped countries in products of our export developed countries in products of our export interest; most of their tariffs are otherwise very interest; most of their tariffs are otherwise very

low.low.

g)g) Reduction / elimination of non tariff barriers inReduction / elimination of non tariff barriers inall countriesall countries


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GATSGATS

Presentation by:Presentation by:Mujeeb Ahmed KhanMujeeb Ahmed KhanHead WTO CellHead WTO Cell



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General Agreement on Trade inGeneral Agreement on Trade inServices (GATS)Services (GATS)

The Service Agreement rests on three pillars.The Service Agreement rests on three pillars.

The first is the framework Agreements The first is the framework Agreementscontaining the basic obligations which apply tocontaining the basic obligations which apply toall members.all members.

The second concerns national schedules of The second concerns national schedules of

commitments.commitments.

The third is a number of measures addressing The third is a number of measures addressingthe special situations of individual servicesthe special situations of individual services

sectors.sectors.


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WTO classification of Services SectorsWTO classification of Services Sectors

The four modes:The four modes:Mode IMode I : cross-border -- when a Pakistani firm: cross-border -- when a Pakistani firm

delivers to an overseas customer without leavingdelivers to an overseas customer without leavinghome. Some examples of this mode are internet,home. Some examples of this mode are internet,telecom, financial services etc.telecom, financial services etc.

Mode IIMode II : consumption abroad -- when a foreign: consumption abroad -- when a foreign

consumer is in the Pakistani market and receivesconsumer is in the Pakistani market and receivesor uses a service. Examples of this mode includeor uses a service. Examples of this mode includetourism, education, machinery sent for repairstourism, education, machinery sent for repairsetc.etc.


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WTO Classification (contd)WTO Classification (contd)

Mode III:Mode III: Commercial presence -- when theCommercial presence -- when thePakistani firm establishes an office abroad;Pakistani firm establishes an office abroad;Illustrations of Mode-III are branches set up byIllustrations of Mode-III are branches set up bybanks and Hotel chains etc.banks and Hotel chains etc.

Mode IV:Mode IV: movement of natural persons -- whenmovement of natural persons -- whenPakistani service employees travel to anotherPakistani service employees travel to anothercountry to provide a service. Examples of thiscountry to provide a service. Examples of thismode are Doctors, engineers, skilled or semimode are Doctors, engineers, skilled or semiskilled laborers etc.skilled laborers etc.


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Commitments on services in the WTOCommitments on services in the WTO

Each member will submit schedules of commitmentsEach member will submit schedules of commitments

pertaining to different services sectors on each of thepertaining to different services sectors on each of the

four modes.four modes.

These schedules will then be negotiated in a request These schedules will then be negotiated in a request

and offer format resulting in submission of revisedand offer format resulting in submission of revised

schedules.schedules.

11 sectors were approved by the ECC for the proposal11 sectors were approved by the ECC for the proposal

Pakistan has submitted its initial offer on 9 servicesPakistan has submitted its initial offer on 9 services

sectors including 68 sub-sectors (on 24sectors including 68 sub-sectors (on 24 thth May 2005).May 2005).


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ECC approved Sectors:ECC approved Sectors:(Marked Red were not in the initial offer)(Marked Red were not in the initial offer)

n

Business ServicesBusiness Servicesn Communication ServicesCommunication Servicesn Construction and related engineeringConstruction and related engineering

ServicesServices

n Distribution servicesDistribution servicesn Educational servicesEducational servicesn Environmental servicesEnvironmental servicesn Financial servicesFinancial servicesn Health and related social servicesHealth and related social servicesn Tourism and travel related services Tourism and travel related servicesn Recreational, cultural and sporting servicesRecreational, cultural and sporting servicesn

Transport services Transport services


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SALIENT FEATURES OF ECC APPROVEDSALIENT FEATURES OF ECC APPROVEDOFFER:OFFER:

iii.iii. Commercial presence' - subject toCommercial presence' - subject toincorporation in Pakistan with maximumincorporation in Pakistan with maximumforeignforeign equity participation of equity participation of 70%70% isisinscribed against a particular sector orinscribed against a particular sector orsubsector.subsector.

v.v. Establishments to be located in ExportEstablishments to be located in Exportprocessing zones may negotiate higher thanprocessing zones may negotiate higher than

70 percent limits on foreign investment70 percent limits on foreign investment ..

vii.vii. Profits of foreign-invested companies will beProfits of foreign-invested companies will befully repatriable except as provided in specificfully repatriable except as provided in specificsector commitments.sector commitments.


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SALIENT FEATURES OF ECC APPROVEDSALIENT FEATURES OF ECC APPROVEDOFFER (contd)OFFER (contd)

i.i. No legal restriction on acquisition of realNo legal restriction on acquisition of realestate by foreign-invested judicial entities orestate by foreign-invested judicial entities ornatural persons.natural persons.

iii.iii. Subsidies, if any, will be granted to domesticSubsidies, if any, will be granted to domesticcompanies only.companies only.

v.v. Movement of natural persons - Unbound,Movement of natural persons - Unbound,

except for measures concerning the entry orexcept for measures concerning the entry ortemporary stay of natural persons falling intemporary stay of natural persons falling inspecified categories. E.g.Intracorporatespecified categories. E.g.Intracorporatetransferees, Business visitors, Independenttransferees, Business visitors, IndependentProfessionals etc...Professionals etc...


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SALIENT FEATURES OF ECC APPROVED OFFERSALIENT FEATURES OF ECC APPROVED OFFER(contd)(contd)

vii.vii. The commitments relating to Professional The commitments relating to Professionalservices apply only to countries that provideservices apply only to countries that providesimilar commitments to Pakistan except naturalsimilar commitments to Pakistan except naturalpersons qualified in the United Kingdom and thepersons qualified in the United Kingdom and theUSA.USA.

viii. In specific sectors; Access granted both toviii. In specific sectors; Access granted both tonatural persons and companies based onnatural persons and companies based oneconomic needs test. Criteria include rate of economic needs test. Criteria include rate of growth of the services sector recorded by thegrowth of the services sector recorded by thenational accounts in the previous 5 years.national accounts in the previous 5 years.


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Pakistans offer Pakistans offer

SALIENT FEATURES OF INITIAL OFFERSSALIENT FEATURES OF INITIAL OFFERS ::

n Commercial presence' - subject toCommercial presence' - subject toincorporation in Pakistan with maximum foreignincorporation in Pakistan with maximum foreignequity participation of equity participation of 60%60% is inscribedis inscribedagainst a particular sector or subsector. Inagainst a particular sector or subsector. Incertain sub sectors e.g. Engineering services itcertain sub sectors e.g. Engineering services itisis 51%51% ..

n In specific sectors; Access granted both toIn specific sectors; Access granted both tonatural persons and companies based onnatural persons and companies based oneconomic needs test.economic needs test.


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Pakistans offer Pakistans offer

SALIENT FEATURES OF PROPOSED REVISED OFFER:SALIENT FEATURES OF PROPOSED REVISED OFFER:

n As per the ECC mandate all 11 sectors and 86As per the ECC mandate all 11 sectors and 86sub-sectors covered.sub-sectors covered.

n Commercial presence' - subject to incorporationCommercial presence' - subject to incorporationin Pakistan with maximum foreignin Pakistan with maximum foreign equityequityparticipation of participation of 70%70% is inscribed against ais inscribed against aparticular sector or sub sector. (ECC mandate)particular sector or sub sector. (ECC mandate)


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SALIENT FEATURES OF PROPOSED REVISEDSALIENT FEATURES OF PROPOSED REVISEDOFFER (contd)OFFER (contd)

iii. No limitations on Market Access or Nationaliii. No limitations on Market Access or Nationaltreatment in Cross border supply (mode I) andtreatment in Cross border supply (mode I) andConsumption abroad (mode II) except forConsumption abroad (mode II) except forFinancial Sector and its sub sectors.Financial Sector and its sub sectors.

iii.iii. Movement of natural persons - Unbound,Movement of natural persons - Unbound,except for measures concerning the entry orexcept for measures concerning the entry ortemporary stay of natural persons falling intemporary stay of natural persons falling inspecified categories. E.g.Intracorporatespecified categories. E.g.Intracorporatetransferees, Business visitors, Independenttransferees, Business visitors, IndependentProfessionals etc...Professionals etc...


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SALIENT FEATURES OF PROPOSEDSALIENT FEATURES OF PROPOSEDREVISED OFFER (contd)REVISED OFFER (contd)

v. No commitments contingent upon reciprocityv. No commitments contingent upon reciprocityby other countries. (ECC plus)by other countries. (ECC plus)

vi. No requirement of Economic Need Test forvi. No requirement of Economic Need Test forgranting Market Access or National Treatment.granting Market Access or National Treatment.(ECC plus)(ECC plus)

vii.Presence of natural persons in certain subvii.Presence of natural persons in certain subsectors there are conditions that qualificationssectors there are conditions that qualificationsfor foreign service suppliers will be set by thefor foreign service suppliers will be set by theconcerned Pakistani Association/Council andconcerned Pakistani Association/Council andany other relevant law in force.any other relevant law in force.(Initial offer)(Initial offer)


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Pakistans View in Service Sector Pakistans View in Service Sector

Pakistan believes that the liberalization inPakistan believes that the liberalization inServices sector is in our own interest, as it Services sector is in our own interest, as it will enhance the efficiency of local servicewill enhance the efficiency of local servicesuppliers through competition and suppliers through competition and

introduction of new techniques apart fromintroduction of new techniques apart fromimproving the quality of manufactured improving the quality of manufactured goods, since the service are also inputs for goods, since the service are also inputs for manufacturing.manufacturing.

Pakistan is presently consulting variousPakistan is presently consulting variousDomestic stakeholders before a final offer isDomestic stakeholders before a final offer ismade.made.


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Trade Related Intellectual Property RightTrade Related Intellectual Property Right

TRIPSTRIPSPresentation by:Presentation by:

Mujeeb Ahmed KhanMujeeb Ahmed KhanHead WTO CellHead WTO Cell



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TRIPSTRIPS

TRIPs included in the single undertaking of TRIPs included in the single undertaking of the URthe URIt establishes minimum standards for all typesIt establishes minimum standards for all typesof IPRs (but utility models and breedersof IPRs (but utility models and breeders rights)rights)It is based on and supplements, withIt is based on and supplements, withadditional obligations, the Paris, Berne, Romeadditional obligations, the Paris, Berne, Romeand Washington Conventionsand Washington Conventions

It extends to IPRs the principles governingIt extends to IPRs the principles governinginternational trade: MFN, NTinternational trade: MFN, NTIt contains provisions relating to enforcementIt contains provisions relating to enforcementof IPRs, amendment and reservationof IPRs, amendment and reservation


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TRIPS (cont2)TRIPS (cont2) TRIPS requires member states to provide TRIPS requires member states to provide

strong protection for intellectual propertystrong protection for intellectual propertyrights. For example, under TRIPS:rights. For example, under TRIPS:Copyright terms must extend to 50 yearsCopyright terms must extend to 50 yearsafter the death of the author, althoughafter the death of the author, althoughfilms and photographs are only required tofilms and photographs are only required tohave fixed 50 and to be at least 25 yearhave fixed 50 and to be at least 25 yearterms, respectively.(Art. 7(2),(4)).terms, respectively.(Art. 7(2),(4)).

Copyright must be granted automatically,Copyright must be granted automatically,and not based upon any "formality", suchand not based upon any "formality", suchas registrations or systems of renewal.as registrations or systems of renewal.


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TRIPS (cont4)TRIPS (cont4)

Exceptions to the exclusive rights must beExceptions to the exclusive rights must belimited, provided that a normal exploitation of thelimited, provided that a normal exploitation of thework (Art. 13) and normal exploitation of thework (Art. 13) and normal exploitation of thepatent (Art 30) is not in conflict.patent (Art 30) is not in conflict.No unreasonably prejudice to the legitimateNo unreasonably prejudice to the legitimateinterests of the right holders of computerinterests of the right holders of computerprograms and patents is allowed.programs and patents is allowed.Legitimate interests of third parties have to beLegitimate interests of third parties have to betaken into account by patent rights (Art 30).taken into account by patent rights (Art 30).In each state, intellectual property laws may notIn each state, intellectual property laws may notoffer any benefits to local citizens which are notoffer any benefits to local citizens which are notavailable to citizens of other TRIPs signatories byavailable to citizens of other TRIPs signatories bythe principles of national treatment (with certainthe principles of national treatment (with certainlimited exceptions, Art. 3 and 5 [2]). TRIPS alsolimited exceptions, Art. 3 and 5 [2]). TRIPS alsohas a most favored nation clause.has a most favored nation clause.


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TRIPS (cont5)TRIPS (cont5)

Many of the TRIPS provisions on copyright wereMany of the TRIPS provisions on copyright wereimported from the Berne Convention for theimported from the Berne Convention for theProtection of Literary and Artistic Works andProtection of Literary and Artistic Works andmany of its trademark and patent provisions weremany of its trademark and patent provisions were

imported from the Paris Convention for theimported from the Paris Convention for theProtection of Industrial Property.Protection of Industrial Property.


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IPRs addressed under TRIPsIPRs addressed under TRIPs

Copyrights.Copyrights.Patents.Patents.

Trade Marks. Trade Marks.

Industrial Designs.Industrial Designs.Layout designs of Integrated circuits.Layout designs of Integrated circuits.Geographical Indications.Geographical Indications.

Traditional Knowledge and Folklore Traditional Knowledge and Folklore


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Tippu Sultan Tippu Sultan

Head Advisory Unit, WTO CellHead Advisory Unit, WTO Cell TDAP TDAP

Regulatory FrameworkRegulatory Framework

in Pakistan and NTCin Pakistan and NTC

l kR l F k i


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Regulatory Framework inRegulatory Framework inPakistanPakistan

Ministry of Commerce is responsibleMinistry of Commerce is responsiblefor negotiating and representingfor negotiating and representingPakistan at multilateral negotiations.Pakistan at multilateral negotiations.

MOC takes its position afterMOC takes its position afterconsultation with all ministries,consultation with all ministries,divisions, associations and chambers.divisions, associations and chambers.


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National Tariff CommissionNational Tariff Commission

Established in 1990 under the National Tariff Commission Act, 1990

FunctionFunction

Implementation of Trade Defense LawsImplementation of Trade Defense Laws


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Functions of the Commission

The Commission is the implementing body for two WTO

agreements, namely, Agreement on Subsidies & CVDs, and

Agreement on Safeguards.

Pakistans Trade Defence Laws:

Anti-Dumping Duties Ordinance, 2000

Countervailing Duties Ordinance, 2001Safeguards Measures Ordinance, 2002


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Anti-Dumping Duties Ordinance, 2000Anti-Dumping Duties Ordinance, 2000

MandateMandateImposition of anti-dumping measures after due processImposition of anti-dumping measures after due process

ProcedureProcedureApplication processing, preliminary investigation,Application processing, preliminary investigation,

preliminary determination, final investigation, final preliminary determination, final investigation, final

determination, imposition of anti-dumping measures.determination, imposition of anti-dumping measures.The anti-dumping duty is imposed for a period of 5 years.The anti-dumping duty is imposed for a period of 5 years.

Time frameTime frame : 365 days: 365 days


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TRANSPARENCYTRANSPARENCY

Commission maintains a Public File in each investigation, whichCommission maintains a Public File in each investigation, whichcontains all documents (non-confidential) including application,contains all documents (non-confidential) including application,notices, reports, comments and correspondence with interested partiesnotices, reports, comments and correspondence with interested partiesand other related documents.and other related documents.

The public file is open for inspection and copying to all interestedThe public file is open for inspection and copying to all interested parties. parties.

The public file is usually inspected by domestic industry, foreignThe public file is usually inspected by domestic industry, foreignmissions, foreign exporters and producers, lawyers etc.missions, foreign exporters and producers, lawyers etc.


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TRANSPARENCYTRANSPARENCY

Throughout the investigation, the Commission keeps all interestedThroughout the investigation, the Commission keeps all interested parties including the governments of exporting countries informed of the parties including the governments of exporting countries informed of thedevelopments in an investigation.developments in an investigation.

In addition, the following documents are available on the CommissionsIn addition, the following documents are available on the Commissionswebsite and are, therefore, in the public domain:website and are, therefore, in the public domain:

Notice of Initiation Notice of Initiation

Notice of Preliminary Determination Notice of Preliminary Determination

Report on Preliminary DeterminationReport on Preliminary Determination Notice of Final Determination Notice of Final Determination

Report on Final DeterminationReport on Final Determination

Commissions website: www.ntc.gov.pk Commissions website: www.ntc.gov.pk

Implementation of Trade Defense Laws


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pAnti-Dumping Actions Taken by Pakistan

Product Exporters fromInitiation

DatePreliminary

DeterminationFinal Determination

Anti-Dumping Duties

Polyester StapleFibre

ThailandKorea, Indonesia

09.08.20060% to 8.33%

09.02.2007

0% to 10.26%07.06.2007

Tiles China 27.03.20060% to 21.02%

30.11.200614.85% to 23.65%

30-03-2007

TinplateUK, USA, Italy,Germany andFrance

06.12.2005Terminated

03.06.2006

Formic AcidFinland andGermany

08.09.200516.49% and 6.16%

09.03.200613.63% and 6.25 %

07-07-2006

Pthalic Anhydride India 11.08.200510.94%

13.02.2006

10.94%

26-05-2006

*Polyester FilamentYarn

Indonesia, Korea,Malaysia, andThailand

12.05.20050% to 36.56%

12.11.20050% to 29.68%

17-03-2006

Anti-dumping duties imposed after final determination remain in force for a period of five years.

*15 Price undertakings have been accepted from the exporters and are being monitored



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Implementation of Trade Defense LawsAnti-Dumping Actions Taken by Pakistan

Product Exporters from InitiationDate

PreliminaryDetermination

Final Determination

UFMC China 12-01-20054.31% to 14.89%

18-07-20053.43% to 11.58%

19-11-2005

PVC ResinIran

Korea25-6-2004

31.06%40.18%

26-10-2004

31.06%40.18%

24-02-2005

Acrylic Tow Uzbekistan 16-3-200412.71%

13-08-200412.71%

10-12-2004

Glacial Acetic Acid Taiwan 1-9-200313.77%

25-2-200413.77%

18-6-2004

Sorbitol 70%Solution

FranceIndonesia

6-3-200396.50% & 91.12%

19-7-200396.50% & 22.26%

19-11-2003

Tinplate South Africa 26-2-200223.91%

22-7-200227.33%

26-11-2002


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Implementation of Trade Defense LawsReviews of Anti-dumping Measures

Product Exporters fromInitiation

DateStatus

Sorbitol 70% Solution Indonesia

25-07-2007

(ChangedCircumstances)

Terminated on

02-02-2008

Tinplate South Africa07-07-2007

(Sunset)Under Process

Tiles ChinaRequest Received

(Newcomer) Under Process


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Implementation of Trade Defense LawsImplementation of Trade Defense LawsAPPEAL AGAINST THE COMMISSIONS DECISIONAPPEAL AGAINST THE COMMISSIONS DECISION

Appellate Tribunal (Pakistan)Appellate Tribunal (Pakistan)Any interested party can file an appeal against aAny interested party can file an appeal against afinal determination made by the Commissionfinal determination made by the Commission

Dispute Settlement Body (Geneva)Dispute Settlement Body (Geneva) The government of exporting country may The government of exporting country mayapproach the DSB to challenge the inconsistenciesapproach the DSB to challenge the inconsistenciesof a measure with the WTO Agreementsof a measure with the WTO Agreements


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Countervailing Duties Ordinance, 2001Countervailing Duties Ordinance, 2001

MandateMandateImposition of countervailing measures after due processImposition of countervailing measures after due process

ProcedureProcedure

Application processing, preliminary investigation, preliminaryApplication processing, preliminary investigation, preliminary

determination final investigation, final determination, imposition of determination final investigation, final determination, imposition of Countervailing measures.Countervailing measures.

The countervailing duty is imposed for a period of 5 years.The countervailing duty is imposed for a period of 5 years.

Time frameTime frame : 365 days.: 365 days.

I l t ti f T d D f L


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Safeguard Measures Ordinance, 2002Safeguard Measures Ordinance, 2002

MandateMandateSafeguard Measures against surge of imports.Safeguard Measures against surge of imports.

ProcedureProcedureApplication processing, investigation, determination and makingApplication processing, investigation, determination and makingrecommendations to the Government.recommendations to the Government.

RecommendationsRecommendations NTC sends recommendations on safeguard measures to the Federal NTC sends recommendations on safeguard measures to the Federal

Govt. for consideration.Govt. for consideration.Safeguard Measures are imposed for a period of 4 years.Safeguard Measures are imposed for a period of 4 years.Time FrameTime Frame : 120 days.: 120 days.


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Implementation of Trade Defense LawsSafeguard Investigation by Pakistan

Product Date of Initiation Determination

Footwear 17-06-2005InvestigationTerminated


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Assisting Exporters Facing Trade Defense ActionsAssisting Exporters Facing Trade Defense Actions

Assisting Pakistani exporters facing foreignAssisting Pakistani exporters facing foreign

actions under WTO Trade Defenseactions under WTO Trade DefenseAgreements.Agreements.

NTC assisted Pakistani exporters of Ethyl NTC assisted Pakistani exporters of Ethyl Alcohol, Pet Resin and Match Boxes. Alcohol, Pet Resin and Match Boxes.

d f


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Assisting Exporters Facing Trade DefenseAssisting Exporters Facing Trade DefenseActionsActions

The Commission has been assisting the exporters from PakistanThe Commission has been assisting the exporters from Pakistanfacing anti-dumping actions by other WTO Member countries,facing anti-dumping actions by other WTO Member countries,mainly in the following:mainly in the following:

Response to the questionnairesResponse to the questionnaires Accounting detailsAccounting details Procedural complianceProcedural compliance DSB proceedingsDSB proceedings


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REGIONALISM REGIONALISM

ByByAamir Hussain SiddiquiAamir Hussain Siddiqui

Economist, Research & Information Unit,Economist, Research & Information Unit,

WTO Cell, TDAPWTO Cell, TDAP


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WTO Provisions for WTO Provisions for

RegionalismRegionalismArticle XXIV of GATT 1994:Article XXIV of GATT 1994:Para 4 of the Doha Declaration: WePara 4 of the Doha Declaration: We

stress our commitment to the WTO asstress our commitment to the WTO asthe unique forum for global trade rule-the unique forum for global trade rule-making and liberalization, while alsomaking and liberalization, while alsorecognizing that regional traderecognizing that regional trade

agreements can play an important roleagreements can play an important rolein promoting the liberalization andin promoting the liberalization andexpansion of trade and in fosteringexpansion of trade and in fosteringdevelopment.development.


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Global tendency of RTAsGlobal tendency of RTAs

Some 380 RTAs have been notifiedSome 380 RTAs have been notifiedto the GATT/WTO up to July 2007.to the GATT/WTO up to July 2007.

Of these, 300 RTAs were notifiedOf these, 300 RTAs were notifiedunder Article XXIV of the GATTunder Article XXIV of the GATT1947 or GATT 1994; 22 under the1947 or GATT 1994; 22 under the

Enabling Clause; and 58 underEnabling Clause; and 58 underArticle V of the GATS. At that sameArticle V of the GATS. At that samedate, 205 agreements were indate, 205 agreements were inforce.force.


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If we take into account RTAs which areIf we take into account RTAs which arein force but have not been notified,in force but have not been notified,those signed but not yet in force, thosethose signed but not yet in force, thosecurrently being negotiated, and those incurrently being negotiated, and those in

the proposal stage, we arrive at a figurethe proposal stage, we arrive at a figureof close to 400 RTAs which areof close to 400 RTAs which arescheduled to be implemented by 2010.scheduled to be implemented by 2010.Of these RTAs, free trade agreementsOf these RTAs, free trade agreements(FTAs) and partial scope agreements(FTAs) and partial scope agreementsaccount for over 90%, while customsaccount for over 90%, while customsunions account for less than 10 %.unions account for less than 10 %.


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World major RTAsWorld major RTAs

European Union (EU) European Union (EU) Custom UnionCustom Union

North America Free Trade Area (NAFTA)North America Free Trade Area (NAFTA)ASEAN Free Trade Area (AFTA)ASEAN Free Trade Area (AFTA)Gulf Cooperation Council (GCC) Gulf Cooperation Council (GCC) CustomCustom

UnionUnion

MERCOSUR (MERCOSUR ( South American Common MarketSouth American Common Market ) ) Custom UnionCustom Union


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Pakistans positionPakistans position

Pakistan has signed following TradePakistan has signed following TradeAgreementsAgreements

a.a.

SAFTA (RTA)SAFTA (RTA)

b.b. FTAs withFTAs with (1)(1) Sri LankaSri Lanka(2)(2) ChinaChina(3)(3) MalaysiaMalaysia

c.c. PTAs withPTAs with (1)(1) MauritiusMauritius(2)(2) IranIran


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South Asian Association for RegionalSouth Asian Association for RegionalCooperationCooperation The South Asian Association for Regional The South Asian Association for RegionalCooperation (SAARC) was established when itsCooperation (SAARC) was established when itsCharter was formally adopted on December 8,Charter was formally adopted on December 8,1985 by the Heads of State or Government of 1985 by the Heads of State or Government of Bangladesh, Bhutan, India, Maldives, Nepal,Bangladesh, Bhutan, India, Maldives, Nepal,Pakistan and Sri Lanka.Pakistan and Sri Lanka.SAARC provides a platform for the peoples of SAARC provides a platform for the peoples of South Asia to work together in a spirit of South Asia to work together in a spirit of friendship, trust and understanding. It aims tofriendship, trust and understanding. It aims to

accelerate the process of economic and socialaccelerate the process of economic and socialdevelopment in Member States.development in Member States.SAFTA is an economic agreement for free tradeSAFTA is an economic agreement for free tradeamong member states.among member states.

h dS h A i F T d A


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Article-7 of the Agreement contains modalities of tariff reductionunder TLP, which are as follows:-No tariff reduction on items in the Sensitive List.Non-LDCs (Pakistan, India, Sri Lanka) shall reduce tariff to 0-5% forLDCs (Bangladesh, Bhutan, Nepal, Maldives) within three years (2009)

Tariff Reduction by Non-LDCs for Non-LDCsReduction in two phases:Phase-I (2006-2008)

Existing tariff rates above 20% to be reduced to 20% withintwo years

Tariff below 20% to be reduced on margin of preference basisof 10% per year.

Phase-II (2008-2013)

Tariff to be reduced to 0-5% within 5 years. Tariff Reduction by LDCs for all SAARC MembersReduction in two phases:

Phase-I (2006-2008) Existing tariff rates above 30% to be reduced to 30% withintwo years

Tariff below 30% to be reduced on margin of preference basisof 5% per year. Phase-II (2008-2016)

South Asian Free Trade AreaSouth Asian Free Trade Area(SAFTA)(SAFTA)


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Sensitive ListSensitive List

Countries No. of tariff lines % of total lines

Bangladesh 1254 24

Bhutan 157 3India 884 16.9Maldives 671 12.8

Nepal 1310 25.5Pakistan 1183 22.6Sri Lanka 1065 20.3


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SAFTA Rules of OriginSAFTA Rules of Ori ginAnnex IV deals with the rules of originAnnex IV deals with the rules of originunder the SAFTA required to qualifyunder the SAFTA required to qualifyproducts for preferential duty benefits.products for preferential duty benefits.Rules of Origin to be operative onRules of Origin to be operative on

01.07.2006. Basic Criteria is as under:01.07.2006. Basic Criteria is as under:For non-LDCsFor non-LDCs40% value addition + change in tariff 40% value addition + change in tariff heading at 4 digits (CTH).heading at 4 digits (CTH). For LDCsFor LDCs30% value addition + CTH.30% value addition + CTH.


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Pak-Sri Lanka Free Trade AgreementPak-Sri Lanka Free Trade Agreement

Salient FeaturesSalient Features Came into force from June 2005.Came into force from June 2005. Establishment of a Free Trade Area throughEstablishment of a Free Trade Area throughcomplete or phased elimination of tariffs.complete or phased elimination of tariffs. The FTA does not remove all tariffs on all goods The FTA does not remove all tariffs on all goodsat once.at once. Negative Lists to protect national interests of Negative Lists to protect national interests of both countries.both countries.

The Rules of Origin (ROO) criteria to ensure a The Rules of Origin (ROO) criteria to ensure a

minimum local content.minimum local content. Adequate safety clauses to protect domesticAdequate safety clauses to protect domesticand national interests of both countries.and national interests of both countries. Review and consultation mechanisms to ensureReview and consultation mechanisms to ensure

the smooth operation of the Agreement.the smooth operation of the Agreement.


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Pakistan CommitmentsPakistan Commitments

From the date of entry into force Pakistan has grantedFrom the date of entry into force Pakistan has granted100% immediate tariff concessions on 206 items. In100% immediate tariff concessions on 206 items. Inaddition Sri Lanka can export up to 10,000 MT of tea peraddition Sri Lanka can export up to 10,000 MT of tea perfinancial year free of duty.financial year free of duty.

Pakistan has also granted 35% of margin of preference onPakistan has also granted 35% of margin of preference on

applied (MFN1) tariff rate to exports of beetle leaves fromapplied (MFN1) tariff rate to exports of beetle leaves fromSri Lanka. Apparel exports from Sri Lanka (21 categories)Sri Lanka. Apparel exports from Sri Lanka (21 categories)are also granted 35% margin of preference on appliedare also granted 35% margin of preference on applied(MFN) tariff rate up to 3 million pieces. Ceramic exports(MFN) tariff rate up to 3 million pieces. Ceramic exportsfrom Sri Lanka to Pakistan are given a margin of from Sri Lanka to Pakistan are given a margin of preference of 20% on applied (MFN) tariff rate.preference of 20% on applied (MFN) tariff rate.

There is no limit on the quantity of exports. About 10% of There is no limit on the quantity of exports. About 10% of tariff lines at 6-digit level (i.e. 540 items) are included intariff lines at 6-digit level (i.e. 540 items) are included inthe negative list of Pakistan. These consist of verythe negative list of Pakistan. These consist of verysensitive items where Pakistan is not in a position to offersensitive items where Pakistan is not in a position to offerany preferential treatment to Sri Lanka.any preferential treatment to Sri Lanka.

All other items that are not included in the negative listAll other items that are not included in the negative listand immediate concession list are subject to a tariff and immediate concession list are subject to a tariff


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Sri Lanka CommitmentsSri Lanka CommitmentsFrom the date of entry into force Sri Lanka hasFrom the date of entry into force Sri Lanka hasgranted immediate duty free access togranted immediate duty free access toPakistan for 102 products. In addition, SriPakistan for 102 products. In addition, SriLanka has allowed Pakistan to export LongLanka has allowed Pakistan to export LongGrained Pakistan Rice (Basmathi) up to 6000Grained Pakistan Rice (Basmathi) up to 6000MT per year and potatoes up to 1000 MMT per year and potatoes up to 1000 MT

during the off season (i.e. June-July & Oct-Nov)during the off season (i.e. June-July & Oct-Nov)free of duty.free of duty.

The negative list of Sri Lanka has about 13% o The negative list of Sri Lanka has about 13% of tariff lines at 6-digit level (697 items) wheretariff lines at 6-digit level (697 items) where

the country would not give any preferentialthe country would not give any preferentialconcessions to Pakistan.concessions to Pakistan.

All other items, which are not included in theAll other items, which are not included in theimmediate 100% concession list and theimmediate 100% concession list and the

negative list, are subject to a duty phase ounegative list, are subject to a duty phase outand would be made dut free b 2010.and would be made dut free b 2010.


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Pak-China FTAPak-China FTA

Pak China Free Trade Agreement was concluded onPak China Free Trade Agreement was concluded on July 1, 2007. The FTA covers overall 14353 products July 1, 2007. The FTA covers overall 14353 productsat 8-digit level of H.S. Code including 7550 underat 8-digit level of H.S. Code including 7550 undertariff reduction modality provided by China andtariff reduction modality provided by China and6803 under Tariff reduction modality of Pakistan.6803 under Tariff reduction modality of Pakistan.

Pak- China FTA comprises two phases, providingPak- China FTA comprises two phases, providingelimination and reduction of tariffs within the timeelimination and reduction of tariffs within the timeframe as provided under the agreement.frame as provided under the agreement. The base The baseyear for tariff reduction/elimination is 2006 for Chinayear for tariff reduction/elimination is 2006 for Chinawhile the base year for tariff reduction/ eliminationwhile the base year for tariff reduction/ eliminationis the fiscal year of 2006-2007 for Pakistan. It isis the fiscal year of 2006-2007 for Pakistan. It isworth mentioning here that theworth mentioning here that the elimination of tarif elimination of tariff on the products covered in the Early Harveston the products covered in the Early HarvestProgram (EHP) shall continue in accordance with theProgram (EHP) shall continue in accordance with theearlier agreed modality of tariff elimination for EHP.earlier agreed modality of tariff elimination for EHP.


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Tariff Reduction Modality of ChinaTariff Reduction Modality of China(Phase-I)(Phase-I)

CategoryNo.

Track No. of Tariff Lines

% of Tariff lines at 8 digit

I Elimination of tariff (Three years) 2681 35.5%

II 0-5% ( five years ) 2604 34.5%

III Reduction on Margin of Preferenceof 50%( five years )

604 8%

IV Reduction on Margin of Preferencefrom 20%( five years)

529 7%

V No Concession 1132 15%

Total 7550


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Tariff Reduction Modality of PakistanTariff Reduction Modality of Pakistan(Phase-I)(Phase-I)

CategoryNo.

Track No. of Tariff Lines

% of Tariff lines at 8 digit

I Elimination of tariff (Three years) 2423 35.6

II 0-5% ( five years ) 1338 19.9

III Reduction on Margin of Preference of 50%( five years )

157 2.0

IV Reduction on Margin of Preference from20%( five years)

1768 26.1

V No Concession 1025 15.0

VI Exclusion 92 1.4

TOTAL 9803


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Phase II: Both Parties shall endeavor to eliminate thetariffs of no less than 90% of products, both in terms of tariff lines and trade volume within a reasonable period

of time on the basis of friendly consultation andaccommodation of the concerns of both Parties .


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Malaysia-Pakistan Closer EconomicMalaysia-Pakistan Closer EconomicPartnership Agreement (MPCEPA)Partnership Agreement (MPCEPA) This Agreement is the 1st bilateral FTA between two Muslim This Agreement is the 1st bilateral FTA between two MuslimCountries - members of OIC. This Agreement is Pakistans firstCountries - members of OIC. This Agreement is Pakistans firstcomprehensive FTA incorporating trade in goods, trade in services,comprehensive FTA incorporating trade in goods, trade in services,investment and Economic Co-operation and Malaysias firstinvestment and Economic Co-operation and Malaysias firstbilateral FTA with any south Asian country.bilateral FTA with any south Asian country.

For trade in Goods Pakistan will eliminate tariff on 43.2% of theFor trade in Goods Pakistan will eliminate tariff on 43.2% of thecurrent imports from Malaysia by 2012. On the other handcurrent imports from Malaysia by 2012. On the other handMalaysia will eliminate tariff on 78% of imports from Pakistan.Malaysia will eliminate tariff on 78% of imports from Pakistan.

In trade in services, both countries have provided WTO plus marketIn trade in services, both countries have provided WTO plus marketaccesses to each other. In the field of computer and I.T relatedaccesses to each other. In the field of computer and I.T relatedservices, Islamic Banking, Islamic Insurance (Takaful) Pakistan hasservices, Islamic Banking, Islamic Insurance (Takaful) Pakistan hassecured 100% equity in Malaysia. Market access in servicessecured 100% equity in Malaysia. Market access in servicesprovided by both countries will impact positively on investmentprovided by both countries will impact positively on investmentand trade in goods. Mutual recognition arrangements are alsoand trade in goods. Mutual recognition arrangements are alsoapart of the FTA.apart of the FTA.

The Agreement also contains a chapter on investment to facilitate The Agreement also contains a chapter on investment to facilitateentrepreneurs of both countries. The incentives available to bothentrepreneurs of both countries. The incentives available to bothcountries will not be available to investors from other countriescountries will not be available to investors from other countries


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Tariff Reduction Modality by PakistanTariff Reduction Modality by Pakistan

Category No. of Items Duty Dates for duties

Fast Track 1703 0% 1-1-2009

Normal Track 1206 0% 1-1-2012

Sensitive Track-1 796 5% 1-1-2011Sensitive Track-2 593 10% 1-1-2014

Sensitive Track-3 1423 20% 1-1-2011

765 items are in Highly Sensitive List, where no concession isgiven

129 items are in Margin of Preference -1, on which 5%, 10%,15% and 20% MOP would given in 2008, 2009, 2010 and 2011,respectively

9 items related to Palm nut and oil, are in Margin of Preference

-2, where MOP would be given 10% in 2008 and 2009 and 15% in2010.

k


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Pak Iran PTAPak Iran PTA

Pakistan signed Preferential TradePakistan signed Preferential TradeAgreement with Islamic Republic of Agreement with Islamic Republic of Iran on 4th March 2004. The CabinetIran on 4th March 2004. The Cabinetratified the agreement on 25th Mayratified the agreement on 25th May2005. As mutually agreed the2005. As mutually agreed theagreement has become operationalagreement has become operational

from 1st September 2006.from 1st September 2006.Preferences granted by bothPreferences granted by bothcountries to each other covercountries to each other cover

approximately 18% of MFN tariff ofapproximately 18% of MFN tariff of

P f i b IP f i b I


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Preferences given by Iran toPreferences given by Iran toPakistanPakistan

Total 309 Items Total 309 ItemsMain items are Textile and Clothing (125Main items are Textile and Clothing (125

items), Chemicals, Marble & Granite, Fish,items), Chemicals, Marble & Granite, Fish,

Bananas, Mangoes and Citrus fruits,Bananas, Mangoes and Citrus fruits,Pharmaceutical, Plastics, Rubber &Pharmaceutical, Plastics, Rubber &Articles, Footwear, Cutleries, Refrigerators,Articles, Footwear, Cutleries, Refrigerators,Electric Motors, Brushes, Pens, Pencils &Electric Motors, Brushes, Pens, Pencils &Markers, etc.Markers, etc.

Margin of Preference is between 10 to 30Margin of Preference is between 10 to 30percent, except Rice, which is given TRQpercent, except Rice, which is given TRQstatus, but Commercial benefit is aboutstatus, but Commercial benefit is about96%.96%.

Preference given by Pakistan toPreference given by Pakistan to


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Preference given by Pakistan toPreference given by Pakistan toIranIran

Total 475 items Total 475 items

Major items, are animal products, vegetables,Major items, are animal products, vegetables,fruits, tea & spices, oilseeds, animal of vegetablefruits, tea & spices, oilseeds, animal of vegetable

oils, confectionary, salts and minerals, fuelsoils, confectionary, salts and minerals, fuelsPetroleum and LPG etc. Organic & InorganicPetroleum and LPG etc. Organic & InorganicChemicals, Pharmaceuticals, Fertilizers,Chemicals, Pharmaceuticals, Fertilizers,Chemicals, Textile & Clothing materials, ArticlesChemicals, Textile & Clothing materials, ArticlesStones, Glass & Glassware, Pig iron and FerrousStones, Glass & Glassware, Pig iron and Ferrousalloy, Copper and Industrial Machines etc.alloy, Copper and Industrial Machines etc.

Margin of Preference is between 10 to 30 percent,Margin of Preference is between 10 to 30 percent,Organic and Inorganic, Ores and other are givenOrganic and Inorganic, Ores and other are givenhighest MOP of 30%highest MOP of 30%

kP k M i i PTA


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Pak Mauritius PTAPak Mauritius PTA

Pakistan signed Preferential TradePakistan signed Preferential TradeAgreement with Republic of MauritiusAgreement with Republic of Mauritiuson 30th July 2007. As mutuallyon 30th July 2007. As mutuallyagreed the agreement has becomeagreed the agreement has becomeoperational from 1st December 2007.operational from 1st December 2007.


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P f d b P kiP f d b P ki


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Preference granted by PakistanPreference granted by Pakistan

Total 66 items Total 66 itemsAll are related to Garments (ChapterAll are related to Garments (Chapter

61: Knitted garments and Chapter61: Knitted garments and Chapter62: Woven Garments)62: Woven Garments)

Margin of Preference is between 30 toMargin of Preference is between 30 to50%50%

Most of the items are subject TRQs.Most of the items are subject TRQs.

ECO T d AECO T d A


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ECO Trade AgreementECO Trade Agreement

Economic Cooperation Organization (ECO), is anEconomic Cooperation Organization (ECO), is anintergovernmental regional organization established inintergovernmental regional organization established in1985 by Iran, Pakistan and Turkey for the purpose of 1985 by Iran, Pakistan and Turkey for the purpose of promoting economic, technical and cultural cooperationpromoting economic, technical and cultural cooperationamong the Member States. In 1992, the Organization wasamong the Member States. In 1992, the Organization wasexpanded to include seven new members, namely:expanded to include seven new members, namely:Afghanistan, Azerbaijan, Kazakhstan, Kyrgyz Republic,Afghanistan, Azerbaijan, Kazakhstan, Kyrgyz Republic,

Tajikistan, Turkmenistan and Uzbekistan. Tajikistan, Turkmenistan and Uzbekistan.

The Organization has a permanent Secretariat in Tehran Iran The Organization has a permanent Secretariat in Tehran Iranheaded by a Secretary General. Mr. Khursheed Anwar, fromheaded by a Secretary General. Mr. Khursheed Anwar, fromPakistan is the current Secretary General of ECOPakistan is the current Secretary General of ECOSecretariat.Secretariat.

ECO Trade Agreement was approved in 2005 in Turkey andECO Trade Agreement was approved in 2005 in Turkey andneed ratification by member governments after which it willneed ratification by member governments after which it willbecome operational.become operational.

Di t S ttl tDi t S ttl t


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Dispute SettlementDispute Settlement

Mechanism (DSM) of theMechanism (DSM) of theWTOWTO

ByByAbdul Aleem khanAbdul Aleem khan

Economist, Advisory Unit,Economist, Advisory Unit,WTO Cell, TDAPWTO Cell, TDAP

I d i h DSUI t d ti t th DSU


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Introduction to the DSUIntroduction to the DSU

What is WTOs DSS & DSUWhat is WTOs DSS & DSU

Need for a DSUNeed for a DSU

Principles: equitable, fast, effective,Principles: equitable, fast, effective,

mutually acceptablemutually acceptable

How are disputes settled?How are disputes settled? The case has been decided: what next? The case has been decided: what next?

Wh i WTO DSUWh t i WTO DSU


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What is WTOs DSUWhat is WTOs DSU

WTOs DSU is the Central Pillar of WTOs DSU is the Central Pillar of

MTSMTS

Evolved through years of Evolved through years of

negotiationsnegotiations

Important achievement of URImportant achievement of UR

N d f DSUN d f DSU


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Need for a DSUNeed for a DSU

System without DSU is fragileSystem without DSU is fragileEnhances the Practical Value of theEnhances the Practical Value of theCommitmentsCommitmentsSettles disputes in a timely &Settles disputes in a timely &structured mannerstructured mannerMitigates the imbalances betweenMitigates the imbalances betweenstronger and weaker playersstronger and weaker playersMembers Trust it!Members Trust it!

Improvements over GATT 1947Improvements over GATT 1947


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pp- a set of Principles- a set of Principles

The system is designed to be: The system is designed to be:Equitable, Fast, Effective, MutuallyEquitable, Fast, Effective, MutuallyAcceptableAcceptable

Following agreed procedures instead of Following agreed procedures instead of taking unilateral actiontaking unilateral actionClearly defined stagesClearly defined stages

Flexible-but not so flexible deadlinesFlexible-but not so flexible deadlinesA case shall normally take 12-15A case shall normally take 12-15monthsmonths

Blocking the ruling is difficultBlocking the ruling is difficult

H Di t S ttl d?H Di t S ttl d?


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How are Disputes Settled?How are Disputes Settled?

Settling disputes is the responsibilitySettling disputes is the responsibilityof DSB.of DSB.Consultation (1st stage up to 60Consultation (1st stage up to 60days)days)

The Panel (2 The Panel (2 ndnd stage 45 days + 6stage 45 days + 6months)months)

How the Panel works?How the Panel works?

H th P l W k ?Ho the Panel Works?


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How the Panel Works?How the Panel Works?

Before the First HearingBefore the First HearingFirst HearingFirst HearingRebuttalsRebuttals

ExpertsExpertsFirst DraftFirst DraftInterim ReportInterim Report

ReviewReviewFinal ReportFinal Report

The Report becomes a ruling The Report becomes a ruling

A lAppeal


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AppealAppeal

Either side can appeal a panelsEither side can appeal a panelsruling. (Sometimes both sides do so)ruling. (Sometimes both sides do so)Each appeal is heard by 3 membersEach appeal is heard by 3 membersof a permanent 7-member Appellateof a permanent 7-member AppellateBodyBody

The appeal can uphold, modify or The appeal can uphold, modify or

reverse the panels legal findings andreverse the panels legal findings andconclusions.conclusions.DSB has to accept or reject theDSB has to accept or reject the

appeals report within 30 daysappeals report within 30 days

The case has been decidedThe case has been decided


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what next?what next?Bring Policy in line with the RulingBring Policy in line with the RulingInform the DSBInform the DSBAdjustment PeriodAdjustment PeriodMutually Acceptable CompensationMutually Acceptable CompensationLimited Trade SanctionsLimited Trade Sanctions

How to impose sanctions?How to impose sanctions?DSB watchesDSB watches

Pakistans E periencePakistans Experience


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Pakistans ExperiencePakistans Experience

As complainant as respondent as third party 3 cases: 2 cases: 9 cases:

1 DS58 US DS36 EC DS32 US

2 DS192 US DS107 US DS33 US

3 DS327 Egypt DS58 US4

DS190 Argentina

5 DS243 US

6 DS246 EC

7 DS267 US

8 DS334 Turkey

9 DS367

Australia

Major CasesMajor CasesDisput


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Dispute

Number

Description Request forConsultations

PAKISTAN AS COMPLAINANT

DS58DS58United States Import Prohibition of Certain Shrimp and Shrimp Products (Complainants: India; Malaysia; Pakistan; Thailand)

8 October 1996

DS19DS1922

United States Transitional Safeguard Measure on Combed Cotton Yarn fromPakistan (Complainant: Pakistan)

3 April 2000

DS32DS3277

Egypt Anti-Dumping Duties on Matches from Pakistan (Complainant:Pakistan)

21 February 2005PAKISTAN AS RESPONDENT

DS36DS36 Pakistan Patent Protection for Pharmaceutical and Agricultural ChemicalProducts (Complainant: United States)

30 April 1996

PAKISTAN AS THIRD PARTY DS24DS24

33United States Rules of Origin for Textiles and Apparel Products (Complainant:India)

11 January 2002

DS24DS2466

European Communities Conditions for the Granting of Tariff Preferences toDeveloping Countries (Complainant: India)

5 March 2002

DS26DS2677

United States Subsidies on Upland Cotton (Complainant: Brazil) 27 September 2002

OTHER CASES DS31DS31

66European Communities Measures Affecting Trade in Large Civil Aircraft (Complainant: United States)

6 October 2004

DS31DS3177

United States Measures Affecting Trade in Large Civil Aircraft (Complainant:European Communities)

6 October 2004

DS34DS3477

European Communities Measures Affecting Trade in Large Civil Aircraft(Second Complaint) (Complainant: United States)

31 January 2006

DS35DS3533

United States Measures Affecting Trade in Large Civil Aircraft SecondComplaint (Complainant: European Communities)

27 June 2005

DS 58: Import Prohibition of CertainDS 58: Import Prohibition of Certain


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ppShrimp and Shrimp ProductsShrimp and Shrimp Products

Complainant: Pakistan, Malaysia, India, ThailandComplainant: Pakistan, Malaysia, India, ThailandRespondent: USARespondent: USA

Third Parties: Third Parties: Australia; Colombia; Costa Rica;Australia; Colombia; Costa Rica;

European Communities; Ecuador; El Salvador;European Communities; Ecuador; El Salvador;Guatemala; Hong Kong, China; Japan; Mexico; Nigeria;Guatemala; Hong Kong, China; Japan; Mexico; Nigeria;Pakistan; Philippines; Senegal; Singapore; Sri Lanka;Pakistan; Philippines; Senegal; Singapore; Sri Lanka;VenezuelaVenezuela8 October 1996: Complainants requested for8 October 1996: Complainants requested for

consultation concerning a ban on Importation of consultation concerning a ban on Importation of Shrimp & Shrimp Products from the complainants,Shrimp & Shrimp Products from the complainants,imposed by US under section 609 of US Public Lawimposed by US under section 609 of US Public Law101-162. Violations of Articles I, XI and XIII of GATT101-162. Violations of Articles I, XI and XIII of GATT1994, as well nullification and impairment of benefits,1994, as well nullification and impairment of benefits,were alle ed.were alleged.

DS 58 (cont )DS 58 (cont )


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DS 58 (cont.)DS 58 (cont.)9 January 1997: Malaysia and Thailand requested the9 January 1997: Malaysia and Thailand requested the

establishment of a panel.establishment of a panel.22 Jan 1997: the DSB deferred the establishment of a22 Jan 1997: the DSB deferred the establishment of apanel.panel.30 January 1997: Pakistan also requested the establishment30 January 1997: Pakistan also requested the establishmentof a panel.of a panel.25 February 1997: DSB established a panel25 February 1997: DSB established a panel25 February 1997: India also requested the establishment25 February 1997: India also requested the establishmentof a panel on the same matter.of a panel on the same matter.20 March 1997: DSB deferred the establishment of a panel.20 March 1997: DSB deferred the establishment of a panel.

10 April 1997: Further to a second request to establish a10 April 1997: Further to a second request to establish apanel by India, the DSB agreed to establish a panel. It waspanel by India, the DSB agreed to establish a panel. It wasalso agreed to incorporate this panel with that alreadyalso agreed to incorporate this panel with that alreadyestablished in respect of the other complainants.established in respect of the other complainants.On 15 April 1997, the Panel was composed.On 15 April 1997, the Panel was composed.



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DS 58 (cont.)DS 58 (cont.)

15 May 1998: Report of the Panel was circulated to15 May 1998: Report of the Panel was circulated toMembers.Members.

The Panel found that the import ban in shrimp and shrimp The Panel found that the import ban in shrimp and shrimpproducts as applied by the United States is inconsistentproducts as applied by the United States is inconsistentwith Article XI:1 of GATT 1994, and cannot be justifiedwith Article XI:1 of GATT 1994, and cannot be justified

under Article XX of GATT 1994.under Article XX of GATT 1994.13 July 1998: the US notified its intention to appeal certain13 July 1998: the US notified its intention to appeal certainissues of law and legal interpretations developed by theissues of law and legal interpretations developed by thePanel.Panel.12 October 1998: Appellate Bodys Report was circulated to12 October 1998: Appellate Bodys Report was circulated toMembers.Members.

The Appellate Body reversed the Panels finding that the US The Appellate Body reversed the Panels finding that the USmeasure at issue is not within the scope of measuresmeasure at issue is not within the scope of measurespermitted under the chapeau of Article XX of GATT 1994,permitted under the chapeau of Article XX of GATT 1994,but concluded that the US measure, while qualifying forbut concluded that the US measure, while qualifying for

provisional justification under Article XX(g), fails to meetprovisional justification under Article XX(g), fails to meet



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6 November 1998: The DSB adopted the Appellate Body6 November 1998: The DSB adopted the Appellate BodyReport and the Panel Report, as modified by the AppellateReport and the Panel Report, as modified by the AppellateBody Report.Body Report.

On 25 November 1998, the US informed the DSB that it wasOn 25 November 1998, the US informed the DSB that it wascommitted to implementing the recommendations of thecommitted to implementing the recommendations of theDSB and was looking forward to discussing with theDSB and was looking forward to discussing with thecomplainants the question of implementation. The partiescomplainants the question of implementation. The partiesto the dispute announced that they had agreed on anto the dispute announced that they had agreed on animplementation period of 13 months from the date of implementation period of 13 months from the date of

adoption of the Appellate Body and Panel Reports, i.e. itadoption of the Appellate Body and Panel Reports, i.e. itexpired on 6 December 1999.expired on 6 December 1999.

On 22 December 1999, Malaysia and the United StatesOn 22 December 1999, Malaysia and the United Statesinformed the DSB that they had reached an understandinginformed the DSB that they had reached an understanding

regarding possible proceedings under Articles 21 and 22 of regarding possible proceedings under Articles 21 and 22 of



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27 January 2000: US stated that it had implemented27 January 2000: US stated that it had implementedthe DSBs rulings and recommendations.the DSBs rulings and recommendations.12 October 2000: Malaysia requested that the matter12 October 2000: Malaysia requested that the matterbe referred to the original panel pursuant to Articlebe referred to the original panel pursuant to Article21.5 of the DSU, considering that by not lifting the21.5 of the DSU, considering that by not lifting the

import prohibition and not taking the necessaryimport prohibition and not taking the necessarymeasures to allow the importation of certain shrimpmeasures to allow the importation of certain shrimpand shrimp products in an unrestrictive manner, theand shrimp products in an unrestrictive manner, theUS had failed to comply with the recommendationsUS had failed to comply with the recommendationsand rulings of the DSB.and rulings of the DSB.23 October 2000: DSB referred the matter to the23 October 2000: DSB referred the matter to theoriginal panel pursuant to Article 21.5 DSU.original panel pursuant to Article 21.5 DSU.15 June 2001: The Panel circulated its report.15 June 2001: The Panel circulated its report.



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The Panel concluded that: The Panel concluded that:the measure adopted by the US in order to comply with thethe measure adopted by the US in order to comply with therecommendations and rulings of the DSB violated Article XI.1 of recommendations and rulings of the DSB violated Article XI.1 of the GATT 1994;the GATT 1994; in light of the recommendations and rulings of the DSB, Sectionin light of the recommendations and rulings of the DSB, Section609 of Public Law 101-162, as implemented by the Revised609 of Public Law 101-162, as implemented by the RevisedGuidelines of 8 July 1999 and as applied so far by the USGuidelines of 8 July 1999 and as applied so far by the USauthorities, was justified under Article XX of the GATT 1994 asauthorities, was justified under Article XX of the GATT 1994 aslong as the conditions stated in the findings of this Report, inlong as the conditions stated in the findings of this Report, inparticular the ongoing serious good faith efforts to reach aparticular the ongoing serious good faith efforts to reach a

multilateral agreement, remain satisfied.multilateral agreement, remain satisfied. should any one of the conditions referred above cease to be metshould any one of the conditions referred above cease to be metin the future, the recommendations of the DSB may no longer bein the future, the recommendations of the DSB may no longer becomplied with. In such a case, any complaining party in thecomplied with. In such a case, any complaining party in theoriginal case may be entitled to have further recourse to Articleoriginal case may be entitled to have further recourse to Article

21.5 of the DSU.21.5 of the DSU.



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23 July 2001: Malaysia notified the DSB its intention to23 July 2001: Malaysia notified the DSB its intention toappeal the above report. Malaysia, in particular, soughtappeal the above report. Malaysia, in particular, soughtreview by the Appellate Body of the Panels findingreview by the Appellate Body of the Panels findingmentioned in point 2 in previous slide.mentioned in point 2 in previous slide.19 September 2001: the Appellate Body informed the DSB19 September 2001: the Appellate Body informed the DSB

of a delay in the circulation of its Report in this appeal.of a delay in the circulation of its Report in this appeal.22 October 2001: Report was circulated to the Members.22 October 2001: Report was circulated to the Members.

The Appellate Body upheld the contested findings of the The Appellate Body upheld the contested findings of thePanel: Since it had upheld the Panels findings that the USPanel: Since it had upheld the Panels findings that the USmeasure was now applied in a manner that met themeasure was now applied in a manner that met the

requirements of Article XX of the GATT 1994, the Appellaterequirements of Article XX of the GATT 1994, the AppellateBody refrained from making any recommendations.Body refrained from making any recommendations.21 November 2001: DSB adopted the Appellate Body21 November 2001: DSB adopted the Appellate BodyReport and the Panel Report, as upheld by the AppellateReport and the Panel Report, as upheld by the AppellateBody Report.Body Report.

DS 192:DS 192: Transitional SafeguardTransitional Safeguardb d fM C b d C Y f


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Measure on Combed Cotton Yarn fromMeasure on Combed Cotton Yarn from

PakistanPakistanComplainant: PakistanComplainant: PakistanRespondent: USARespondent: USA3 April 2000: Pakistan requested consultations with the US3 April 2000: Pakistan requested consultations with the USin respect of a transitional safeguard measure applied byin respect of a transitional safeguard measure applied bythe US, as of 17 March 1999, on combed cotton yarn fromthe US, as of 17 March 1999, on combed cotton yarn fromPakistan.Pakistan.

Pakistan claimed as follows:Pakistan claimed as follows:the transitional safeguards applied by the United States arethe transitional safeguards applied by the United States areinconsistent with the United States obligations underinconsistent with the United States obligations underArticles 2.4 of the ATC and not justified by Article 6 of theArticles 2.4 of the ATC and not justified by Article 6 of theATC;ATC; the US restraint does not meet the requirements forthe US restraint does not meet the requirements fortransitional safeguards set out in paragraphs 2, 3, 4 and 7transitional safeguards set out in paragraphs 2, 3, 4 and 7of Article 6 of the ATC.of Article 6 of the ATC.


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The Panel recommended that the DSB request that the US The Panel recommended that the DSB request that the USbring the measure at issue into conformity with itsbring the measure at issue into conformity with itsobligations under the ATC, and suggested that this can bestobligations under the ATC, and suggested that this can bestbe achieved by prompt removal of the import restriction.be achieved by prompt removal of the import restriction.On 9 July 2001, the US notified its decision to appeal to theOn 9 July 2001, the US notified its decision to appeal to the

Appellate Body certain issues of law covered in the PanelAppe

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