MGT601 SME MANAGEMENT

WTO Conclusions and Recommendations Lesson 44 WTO Conclusions and Recommendations

Chapter Learning Objectives This chapter deals with Conclusion and Recommendations of WTO

WTO WTO is a reality, which has come to stay. We have to face the emerging challenges and grasp the opportunities. As the Governor, SBP stated that we need to develop strategy to get maximum benefit from globalization.

Foremost areas of concerns 1. The textile sector, which contributes 67% of our total exports, would in 2005 face severest competition from other major suppliers like china, Hong Kong, Thailand and Bangladesh. We have made some progress in facing post quota era under Textile Vision 2005 to take the production of textile good, upwards in the value chain. it is apprehended that the MFA phase out will start another era of non-tariff barriers. With the phasing out of quotas, textile manufacturers in industrialized and some quota free countries may decide to relocate. Government should provide incentive to ensure that they relocate in Pakistan.

Continued…. 2. The country urgently needs to build a strong network of anti-dumping and countervailing duties to protect the local industry against the onslaught of unfair foreign competition. It is heartening to note that Trade policy 2003-04 envisages enhancement of capabilities of NTC and it is recommended that NTC should be restructured and converted into an autonomous body employing private sector professionals.

Continued…. 3. The developing countries face problems in hiring law firms to advice on WTO related issues, which is a constraining factor in seeking relief from Dispute Settlement Body. There is a need to train local lawyers with WTO expertise.

Continued…. 4. Our survival lies in enhancing credibility through adoption of international quality standards, but Pakistan has a long way to go in obtaining certifications of ISO9000, ISO14000 and other standards. We need to set up PNAC accreditation testing laboratories for conformity assessment.

Continued…. GoP must collect data in respect of standards of manufacturing, food and other agricultural produce in the countries where we are targeting out exports. GoP may amend the policies for manufacturing of engineering goods so that it offsets the effects on their performance due to termination of grace period of TRIMs.

Continued…. Pakistan has done well by undertaking liberalization measures relating to communication and financial sectors well over and beyond its commitments under GATS. But the measures have not been translated into internationally binding commitments.

Continued…. According to recent study, the major flaw in Pakistan’s approach that while it paid a great deal of attention to inward flow of foreign investment and technology it did not view gats as a means of export of its services. This needs to be rectified but the Developing countries are still in a low level of economic equilibrium.

Continued…. In this era of globalization, regionalism has assumed great importance. It is high time that we make SAARC and ECO more proactive to spur up intra-regional trade to ward off the risk of being marginalized. The core WTO related issues are discussed and debated in the technical committees, where our participation is not effective, as it is not backed by background research for submission of technical papers.

Continued…. This underscores the need for meaningful coordination of efforts at government level and industry level under the aegis of SAARC to ensure effective participation in the meetings. We still do not posses the institutional and technical capabilities to develop, advocate and formulate the standards and legislations to meet the WTO requirements.

Policy Formulation Government for policy formulation and for their on going negotiations with WTO under Doha round. Due to the enlargement of European Union from 15 to 20 countries. Due to bilateral agreements in which countries of our interest are also GoP should take up studies to ascertain the impact on trade of Pakistan involved. accession of china to WTO.

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