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Before the Uruguay Round accord the discrimination in textiles, clothing andagriculture was severe because tariffs and non-tariff barriers (NTBs) wereemployed in such a way that the overall effect of protection accumulated

The new accord offers a variety of new opportunities for Pakistan to expand itsexport base and diversify its export markets

With the implementation of the agreement Pakistan's major exports would receivesignificant tariff reduction from the DCs and the LDCs. Tariffs facing basic

manufactures in the LDCs such as textiles and clothing will decline by 8.9 percent,agricultural products by 5.1 percent, minerals and fuels by 13.3 percent andmiscellaneous manufactures by 7.5 percent

DCs, tariffs on basic manufactures are expected to reduce by 2.2 percent makingthe export weighted average post-Round tariff as 6.5 percent. Thus, the averagepost-Round tariffs for these products are likely to be 3.4 percent and 10.8percent, respectively. As a result, Pakistan's total merchandise exports to the DCsand LDCs will benefit from a weighted average tariff reduction of 2.4 percent and

6.9 percent, respectively. Consequently, Pakistani exports will face a weightedaverage post-Round tariff of 6.9 percent in DCs' markets and 9.1 percent in LDCs'markets

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The MFA is clearly discriminatory and thereby openly violates thebasic principle of the WTO. Pakistan's textile and clothing exportsare largely directed towards quota countries, particularly the highvalue added products whose quota utilisation rates are very high.This suggests that the MFA is a binding constraint on Pakistan'shigh value added textiles

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Participation in the GATS provides Pakistan an opportunity toincrease the economic efficiency of its services sector,

greater access to lower cost/higher quality service inputs, andincreased market access for its own competitive service exports,such as construction services and professional services

vast majority of low wage skilled labour, service is an area that

provides vast potential growth to Pakistan. Pakistan is likely to benefit from Article IV on LDCs' participation,

which is aimed at promoting their interest by specific commitmentsmade by the members, referring explicitly to the provision oftechnology

Pakistan participated in the GATS negotiations, but did not

undertake extensive commitments. Out of a possible 620commitments, Pakistan made 108 commitments, with 27.8 percentof commitment with no market access limitation and 35.2 percentcommitments with no national treatment limitation.

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The TRIMs provisions disallow conditions countries impose oninvestment especially on foreign investment, to mould investment inaccordance with the national priorities. These include: local contentrequirements (like Pakistans deletion program); trade and foreignexchange balancing requirements; and domestic sales (or export)requirements.

Under the deletion policy, an industrial enterprise is offered anoption for the deletion defined in terms of increase in the use ofdomestically produced components and parts. The policy is open toforeign as well as domestic enterprises. There is no compulsion foran enterprise to accept the deletion program.

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The TRIPS agreement provides for increased surveillance of nationalproperty protection laws. Implementation of the laws increasesdemand for royalty payments and restrictions on the transfer oftechnology.

There are dynamic gains that Pakistan can make, provided owners ofintellectual property receive effective protection of their property inthe country

With the implementation of the TRIPs agreement, it is expected thatprotected firms, especially in pharmaceutical products (medicine)and chemicals will choose to exercise their stronger rights in anti-competitive ways,

extent agricultural chemicals are subsidised, government will haveto bear the additional burden of rising costs of these products

Pakistan will have to make more payments for royalty and technicalfees, which will have balance of payment implications

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The provisions on "dispute settlement" is a welcome addition to thetrade policy instruments, as it would strengthen non-discriminationamong trading partners, make world trade more predictable andtransparent, and reduce the scope for unilateral action by the DCs.

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