1. National Tariff Commission Pakistan “Current Situation and Prospect of Pakistan’s Application of Trade Remedy Instruments” Beijing, June 25-26, 2007

2. o Current Situation o Current Situation in relation to China o Prospects Outline of Presentation

3. o Pakistan founding Member of GATT in 1947 o Pakistan signatory to the Final Act (Uruguay Round Agreements on Trade in Goods, Trade in Services, TRIPS etc, 1994) o WTO Trade Defence Agreements implemented 2000 onwards Pakistan and WTO

4. The Commission is responsible for administration of, inter alia, the following statutes: o Anti-Dumping Duties Ordinance, 2000 o Countervailing Duties Ordinance, 2001 o Safeguards Measures Ordinance, 2002 Functions of the Commission

5. Pakistan’s Trade Defense Laws strive for strict conformity with respective WTO Agreements, i.e., o Agreement on Implementation of Article VI o Agreement on Subsidies and Countervailing Measures o Agreement on Safeguards Compliance with WTO Agreements

6. 6 o The Commission initiated twenty-four AD investigations and one safeguard investigation since 2002 o Imposed measures in nineteen cases o Five AD investigations and the safeguards investigation were terminated without any measure Implementation of Trade Defence Agreements: Actions by Pakistan

7. Implementation of Trade Defense Laws Actions Taken by Pakistan ProductExporters from Polyester Staple Fibre Thailand Korea, Indonesia TilesChina TinplateUK, USA, Italy, Germany and France Formic AcidFinland and Germany Pthalic AnhydrideIndia Polyester Filament Yarn Indonesia, Korea, Malaysia, and Thailand 7

8. Implementation of Trade Defense Laws Actions Taken by Pakistan, continued ProductExporters from UFMCChina PVC Resin Iran Korea Acrylic TowUzbekistan Glacial Acetic AcidTaiwan Sorbitol 70% Solution France Indonesia TinplateSouth Africa

9. CategoryAD InitiationsAD Measures Steel61 Chemical99 Others99 Total2419 Pakistan’s AD activity follows the worldwide trend of steel and chemical products being targeted relatively frequently Pakistan Anti-Dumping Activity

10. Category AD Initiations AD Measures Percentage Steel84459370.26 Chemical57838165.92 Others1,51690159.43 Total2,9381,87563.82 Source: WTO Website (Period - January 2005 to June 2006) Worldwide Anti-Dumping Activity

11. o Comments on Application and Initiation o Right to present information, including orally o Comments on Preliminary Determination o Hearing upon request o Comments on Statement of Essential Facts o Meetings with interested parties with adverse interests o Access to public file Investigation: Opportunities provided to Interested Parties

12. o Reply to the Exporter’s Questionnaire o Request for Individual Dumping Margin o Price undertaking o Disclosure Meetings upon request Additional Opportunities for Exporters

13. Determinations may be made on the basis of facts available only when an interested party : o refuses access to or does not provide information within a reasonable period, or o significantly impedes the investigation Provisions of Annex II of AD Agreement are observed while making a determination on the basis of “Facts Available”. Determination on basis of “Facts Available”

14. o The Commission conducts “On the Spot investigations” for: o Domestic Industry (before initiation of investigation) o Exporters/Foreign Producers o Purpose of visit is to verify information provided in application/questionnaire response o Sufficient advance notice is given o Report on verification takes into consideration the comments received thereon by the subject party, and o Non-confidential version of report placed on public file On the Spot Investigation

15. Throughout the investigation, the Commission keeps all interested parties informed of the developments in an investigation through: o Notices and Reports o Public File established and maintained in each investigation Transparency

16. Notices published in national newspapers, official Gazette and also sent directly to all known interested parties. These Notices include: o Notice of Initiation o Notice of Preliminary Determination o Notice of acceptance of Price Undertakings o Notice of Final Determination o Notice of Termination of Investigation Transparency

17. o The Public File contains all documents (non- confidential) including application, notices, reports, comments and correspondence with interested parties and other related documents. o The public file is open for inspection to all interested parties. o All notices and reports of determinations are voluntarily posted on the Commission’s website: www.ntc.gov.pk Transparency

18. o Appellate Tribunal (Pakistan) o Any interested party can file an appeal against a final determination made by the Commission o Dispute Settlement Body (Geneva) o The government of exporting country may approach the DSB to challenge the inconsistencies of a measure with the WTO Agreements Appeal against Determination

19. Outline of Presentation o Current Overall Situation o Current Situation in relation to China o Prospects

20. o The Commission has so far received five anti-dumping complaints relating to PRC exporters o Three complaints did not warrant formal applications o Anti-dumping measures were imposed in two cases after following due process Applications received in relation to PRC exporters

21. Anti-Dumping Cases Relating to PRC Exporters ProductYear Procedure Followed Result Urea Formaldehyde Moulding Compound 2005 Due process under the domestic legislation followed Anti-Dumping measure imposed Ceramic Tiles2006 Due process under the domestic legislation followed Anti-Dumping measure imposed

22. The Commission defended the following in domestic Courts in anti-dumping investigation relating to dumped imports of Tiles. o Sixty-Six writ petitions in the High Court o Two appeals in the Supreme Court o A complaint filed before the Federal Tax Ombudsman Due process followed by the Commission upheld. 22 Trade Defense Laws Litigation in Domestic Courts

23. Outline of Presentation o Current Overall Situation o Current Situation in relation to China o Prospects

24. o Existing and emerging tariff regime o Growth in imports o Growth in domestic and export demand o The Antidumping Agreement Prospects

25. Applied Tariff Rates 5 10 15 20 25 Pakistan’s existing import tariff regime

26. NAMA negotiations and the shape of the emerging import tariff regime NAMA negotiations are seeking reductions in tariffs and increase in bindings These negotiations are finding a focus around the “Swiss Formula”, viz: Issues under discussion include the formula coefficient and the speed of adjustment

27. Application of Swiss Formula to Pakistan’s Bound Rates Bound Ratesa = 15a = 20a = 25a = 30 53.754.04.174.29 106.06.677.147.5 157.58.579.3810.0 208.5710.011.112.0 259.3811.112.513.6 3010.012.013.615.0 4010.913.315.417.1 5011.514.316.718.8 5511.814.717.219.4 6012.015.017.620.0 7012.415.618.421.0 7512.515.818.821.4 10013.016.720.023.1

28. Swiss Formula: Implications for Pakistan’s Bound Rates Pakistan average bound tariff 54.6% Pakistan average bound tariff 14.60%

29. Any reduction in import tariffs would likely increase imports Increase in imports would cause industry to seek remedies

30. YearImportsAnnual change % 2002-0311,23310.22 2003-0413,03716.06 2004-0517,94937.68 2005-0625,35741.27 2006-07(Jul-Dec)14,93017.76 (Million of USD) Source: IMF - Direction of Trade Statistics Pakistan’s Imports

31. Major Imports of Pakistan March-July 2006-07 Share in per cent Chemicals, incl Fertilizers187.9113.82 Machinery, incl Elect, Transpt414.2630.48 Food80.025.89 Paper,board and stationery13.530.99 Art Silk Yarn10.490.77 Iron, steel and manufactures thereof 67.524.97 Non-ferrous metals20.011.47 Petroleum & petroleum products306.1522.53 Other259.1319.06 1,359.03100.00 Source: Economic Survey of Pakistan 2006-07

32. 1996-972005-06 (%age of total) United States1,2911,5326.04 EU2,5894,16616.43 China5762,3499.26 Japan 1,2391,6336.44 Indonesia1146842.69 Malaysia6527322.89 Korea3256552.58 Saudi Arabia7072,81911.12 U.A.E6152,62010.33 Kuwait9001,2644.98 Others3,1236,90327.22 Total12,13125,357100 Millions of USD Source: Direction of Trade Statistics, IMF Pakistan: Direction of Imports

33. o Pakistan current year GDP growth projected at 7 per cent o Major export markets, the IMF’s Advanced Economies, are expected to grow at 2.5 and 2.7 per cent in 2007 and 2008 o IMF projects the important export market of Developing Asia to grow at 8.8 and 8.4 per cent in 2007 and 2008 Growth in domestic and export demand

34. Exports from Pakistan 1996-972005-062005-06 percent share United States1,5513,97924.80 EU2,7784,15625.89 China1194362.72 Japan6081430.89 Indonesia142680.42 Malaysia38670.42 Korea2792001.25 Saudi Arabia2453552.21 U.A.E4341,2567.82 Kuwait32770.48 Hong Kong8745993.73 Others2,2214,71529.37 Total9,32116,051100 Millions of USD Source: Direction of Trade Statistics, IMF

35. THANK YOU

36. Implementation of Trade Defense Laws Anti-Dumping Actions Taken by Pakistan ProductExporters from Initiation Date Preliminary Determination Final Determination Anti-Dumping Duties Polyester Staple Fibre Thailand Korea, Indonesia 09.08.2006 0% to 8.33% 09.02.2007 0% to 10.26% 07-06-2007 TilesChina27.03.2006 0% to 21.02% 30.11.2006 14.85% to 23.65% 30-03-2007 Tinplate UK, USA, Italy, Germany and France 06.12.2005 Terminated 03.06.2006 Formic Acid Finland and Germany 08.09.2005 16.49% and 6.16% 09.03.2006 13.63% and 6.25 % 07-07-2006 Pthalic AnhydrideIndia11.08.2005 10.94% 13.02.2006 10.94% 26-05-2006 Polyester Filament Yarn Indonesia, Korea, Malaysia, and Thailand 12.05.2005 0% to 36.56% 12.11.2005 0% to 29.68% 17-03-2006

37. Implementation of Trade Defense Laws Anti-Dumping Actions Taken by Pakistan ProductExporters from Initiation Date Preliminary Determination Final Determination UFMCChina12-01-2005 4.31% to 14.89% 18-07-2005 3.43% to 11.58% 19-11-2005 PVC Resin Iran Korea 25-6-2004 31.06% 40.18% 26-10-2004 31.06% 40.18% 24-02-2005 Acrylic TowUzbekistan16-3-2004 12.71% 13-08-2004 12.71% 10-12-2004 Glacial Acetic AcidTaiwan1-9-2003 13.77% 25-2-2004 13.77% 18-6-2004 Sorbitol 70% Solution France Indonesia 6-3-2003 96.50% & 91.12% 19-7-2003 96.50% & 22.26% 19-11-2003 TinplateSouth Africa26-2-2002 23.91% 22-7-2002 27.33% 26-11-2002

38. Imports From PRC YearImports (mlln $)Annual change (%) 1996-9757625.76 1999-00451(21.70) 2001-024857.54 2003-0495897.53 2005-062349145.20 2006-07 (Jul-Mar) 329887.20 Source: IMF Direction of Trade Statistics

39. Composition of Imports from PRC (July-December 2006) Commodities Value (000 US$) Percentage Machinery 654,37642.49 Iron and steel 90,0505.85 Chemicals 162,44610.55 Coal, coke and briquettes 55,6563.61 Yarn & thread of synthetic fibers 90,7525.89 Construction materials 40,8402.65 Manufactures of non-ferrous metals 33,3722.17 Tyres and tubes of rubber 39,2842.55 Others 373,22324.24 Total 1,539,999100.00