SEMINAR ON THE APPLICATION OF SPS MEASURES I N S I D E T H I S I S S U E :

Trade Remedial Laws of Pakistan: An Implication of the WTO

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WTO Meetings 3 Diploma in Inter-national Trade Law By the Uni-versity of the Punjab

Diploma in Inter-national Trade Law By the Uni-versity of the Punjab

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US Clears Paki- 4

News & Views Pakistan Joins Cairns Group

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Ministry of Com-merce clarifies misleading news regarding SAFTA

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US gives aid on food, animal & plant health standards

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W T O C E L L

P L A N N I N G & D E V E L O P M E N T D E P T T

G O V E R N M E N T O F T H E P U N J A B THE WTO CELL NEWSLETTER M A R C H 2 0 0 6 V O L U M E 1 , I S S U E 4

N E W S I N B R I E F :

• Mr. Sohail Ahmed

assumed charge as the Secretary, Plan-ning & Development Department, Govern-ment of the Punjab. Prior to taking the present assignment he has been serving as Secretary Health.

A seminar was arranged by WTO Cell, Planning & Develop-ment Department, Government of the Punjab on February 16, 2006 at Agriculture House in collaboration with Agriculture department and University of Veterinary & Animal Sciences. The purpose of the same was to disseminate information to the stakeholders and other govern-ment officials. The Minister for Agriculture Marketing Mr. Rana Qasim Noon was the Chief Guest of the seminar. There were two sessions; the first session was chaired by Mr. Inaamul Haque, Advisor on WTO, P&D Department and the second session by Ms. Shaher Bano Walajahi, Chief WTO Cell, P&D Department. . The seminar commenced at 10:00 a.m. with the inaugural speech of Mr. Inaamul Haque, Advisor WTO. He said that the question is not that why we signed WTO agree-ments, the fact is that we have signed it and we are left with no other way but to face it. We should plan and emphasize more on our next strategy. He explained with examples about the misunderstandings regard-ing developed countries swal-lowing up the economies of de-veloping countries. He empha-sised on the importance of re-freshing and up gradation of knowledge and said that we need to relate, apply and spread that knowledge to our masses. He further said that the purpose of the seminar was to understand the implication of SPS Measures to Pakistan, identify the problems and com-pliance available to the Govern-ment for enhancing our capac-ity to use SPS Measures with regard to increase in our ex-

ports. There was one presenta-tion in the first session by Mr. Majid Ali Wajid on “The WTO Agreement on Sanitary and

Phytosanitary Measures”. He explained what SPS Measures are, how to apply them and who are the beneficiaries of SPS Measures. There were three presentations in the second session that started after tea. The first pres-entation was by Dr. Noor Mu-hammad, Chief WTO, Agricul-ture Department, on “Sanitary & Phytosanitary Measures:

Pakistan’s experience”. He shared his information regard-ing measures adopted by the Government of the Punjab, regulations made, labelling re-quirements and different Acts like Pakistan Plant Quarantine

Act 1976, Federal Seed Cer-tification Act 1976, etc. dif-ferent associations and com-mittees working on these Measures. His presentation was followed by a number of questions and comments. Mr. Ameen, Assistant professor, Government College Univer-sity made his comments on the current hygienic situation in the country. He said that the waste product of facto-ries is being discharged into the rivers without getting processed by treatment plants. He further remarked that we are endeavouring for free health hazard in exports and imports of products/goods only and do not heed to the internal situation of the edible products due to which Tuberculosis is widely spreading in the country and environmental problems are generating. He suggested the chair that documentation of the factories should be done and they should be forced to have treatment plants. Mr. Hamid Mahli, President of Basmati Growers Association made comments on the pres-entation of Dr. Noor Muham-mad. He said that the de-partment is doing its best to disseminate information through seminars but there is dire need to take practical steps so that farmers at the grass root level may know the steps they should take to make their produce more cost effective and competi-tive in the international mar-ket. A student from Govt. College University remarked that the government should formulate new laws in accor-dance with the requirements

Mr. Inaamul Haque, Advisor on WTO, P&D De-partment giving his inaugural address while Mrs. Shaher Bano Walajahi, Chief (WTO) and Dr. Noor Muhammad, Chief (WTO) Agriculture Department, are also sitting.

Chief Guest Mr. Rana Qasim Noon, Minister for Agriculture Marketing addressing the participants.

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at international level. The next presentation was given by Prof. Dr. Khushi Muhammad on “Role of Labs in Quality Control of Food of Animal Origin” in which he brief the participants about the cost of the project, its objectives, food testing procedures etc. The last presentation was by Dr. Riaz Sayal. He threw light on setting up a labo-ratory of pesticide residual element in edible goods at Kala Shah Kakoo. After last presentation the chair

briefed the participants regarding ac-tivities of the WTO Cell in the Planning & Development Department and gave a view of the Sanitary & Phytosanitary Agreement and its impact on Pakistan. Then the chair invited the Minister to express his views. In the end of seminar the chair paid her heartiest thanks to all the partici-pants for attending the seminar.

TRADE REMEDIAL LAWS OF PAKISTAN: AN IMPLICATION OF THE WTO REGIME Since the establishment of the WTO (World Trade Organization) in 1995, many of its member countries have been active in complying with the multilateral trade agreements ad-ministered by the Organization. It is this factor of compliance that has also led Pakistan to undergo legisla-tions to bring into effect the rules and regulations provided for in the WTO Agreements. Pakistan was one of the founding members of GATT (General Agree-ment on Tariffs and Trade) in 1947 that provided for international rules regarding trade in goods. This GATT 1947 was later annexed to Mar-rakesh Agreement establishing the World Trade Organization as GATT 1994. GATT practice has always been to require that the cuts in tar-iffs agreed in multilateral trade ne-gotiations should be implemented in stages over an agreed number of years. The reason for it was to give industries time to adjust gradually to the increased competition resulting from reductions in tariffs and from the removal of other barriers to trade. Even with this phased imple-mentation of tariff reductions, cer-tain industrial or agricultural sectors, at times, face problems in adjusting to increased import competition. These problems flow chiefly from their failure to rationalize production structures or to adopt the techno-logical innovations necessary to raise productivity. Yet, another menace of increased imports is attributable to unfair trade practices like dumping and subsidies by foreign suppliers. Pakistan's domestic industry faces similar problems of increased im-

ports and unfair practices under the global trade regime. WTO Agreements have an in-built mechanism providing for remedial measures to counteract the effect of these problems. Accord-ingly, Pakistan through national legis-lation has given effect to trade reme-dial measures provided for under the international trade laws. Pakistan came up with Anti-Dumping and Coun-tervailing Duties Ordinances of 2000 against unfair trade practices and the Safeguard Measures Ordinance of 2002 against surge of imports in order to protect its domestic industry. Safeguard Measures Ordi-nance of 2002 Safeguard measures are one of three types of contingent trade protection measures, along with anti-dumping and countervailing measures, available to WTO Members. Safeguard measures are defined as "emergency" actions with respect to increased imports of particular prod-ucts, where such imports have caused or threaten to cause serious injury to the importing Member's domestic in-dustry. Such measures, which in broad terms take the form of suspension of concessions or obligations, can consist of quantitative import restrictions or of duty increases to higher than bound rates. As an example, United States, at one time, had applied safeguard meas-ures to protect its local steel industry by increasing tariffs on steel imports. However, those measures were later found to be unjustified by WTO and were removed by US. The Agreement on Safeguards ("SG Agreement") sets forth the rules for

application of safeguard measures according to Article XIX of GATT 1994. This Article provides that where, as a result of tariff reduc-tions, a Member country finds that a product is being imported in such increased quantities and un-der such conditions as to cause or threaten serious injury to domestic producers, it can impose safe-guard measures to restrict such imports for temporary periods. Pakistan through Safeguard Meas-ures Ordinance, 2002 has given effect to the provisions of Article XIX of the General Agreement on Tariffs and Trade, 1994, and to the WTO Agreement on Safe-guards for the imposition of safe-guard measures. This has been done by providing a framework for investigation and determination of serious injury or threat of serious injury caused by products im-ported into Pakistan. Pakistan may apply a safeguard measure on an imported product if, it is determined by an investi-gation conducted by one of its Au-thorities (National Tariff Commis-sion) in accordance with the provi-sions of the Ordinance that as a result of unforeseen developments and of the effect of WTO obliga-tions assumed by Pakistan, the product was being imported in such increased quantities, abso-lute or relative to domestic pro-duction, and under such conditions as to cause serious injury or threat of serious injury to domestic in-dustry producing like or directly competitive products. The investigations for the

Participants of the seminar on Sanitary & Phytosanitary Measures

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imposition of such meas-ures can be initiated either by the National Tariff Com-mission itself or on the ba-sis of a petition from the affected industry. In prac-tice, the investigations are generally initiated on the basis of petitions from the affected industry. However, petitions can be submitted only when it is possible to establish that there is a causal link between in-creased imports and the alleged serious injury to the industry. The Safeguard Measures Ordinance, 2002 also lays down the criteria, which the investigating authori-ties must consider in deter-mining whether increased imports are causing serious injury to the domestic in-dustry. It even sets out basic procedural require-ments for the conduct of investigations. One aim of the procedural require-ments is to provide foreign suppliers and governments whose interests may be adversely affected by the proposed safeguard actions with an adequate opportu-nity to give evidence and to defend their interests. The overall primary objec-tive of providing such tem-porary increased protection is to give the affected in-dustry time to prepare it-self for the growing compe-tition that it will have to face after the safeguard measures are removed. Anti-Dumping Du-ties Ordinance, 2000 GATT acknowledges that the rise in imports may also be due to the adop-tion of unfair trade prac-tices by foreign suppliers. Its rules therefore lay down the basis on which governments may levy

compensatory duties on im-ports of products benefiting from such unfair practices. The GATT rules deal with two types of "unfair trade" prac-tices, which distort conditions of competition. First, the conditions of competition may be distorted if the ex-ported goods are dumped in foreign markets. Second, the competition may become unfair if the exported goods benefit from specific subsi-dies. A product is considered dumped if the export price is less than the price charged for the like product in the exporting country. Dumping is, in general, a situation of international price discrimi-nation, where the price of a product when sold in the im-porting country is less than the price of that product in the market of the exporting country. Thus, in the sim-plest of cases, one identifies dumping simply by compar-ing prices in two markets. However, the situation is rarely, if ever, that simple, and in most cases it is neces-sary to undertake a series of complex analytical steps in order to determine the ap-propriate price in the market of the exporting country (known as the "normal value") and the appropriate price in the market of the importing country (known as the "export price") so as to be able to undertake an ap-propriate comparison. The Agreement on the Imple-mentation of Art. VI of GATT 1994, administered by WTO, elaborates the basic GATT rules on dumping and au-thorizes countries to levy anti-dumping duties on dumped products. Pakistan through Anti-dumping Ordi-nance, 2000 has repealed the Import of Goods (Anti-Dumping and Countervailing Duties) Ordinance, 1983 and has given effect to WTO pro-visions relating to imposition

of anti-dumping duties in or-der to offset dumping. This Ordinance has also provided a framework for investigation and determination of dump-ing and injury in respect of goods imported into Pakistan. The National Tariff Commis-sion in Pakistan may impose anti-dumping measures on products imported into Paki-stan, in case it determines, after an investigation initiated and conducted in accordance with the provisions of the Or-dinance, that: – 1. An investigated product is

dumped in Pakistan, and 2. Injury is being caused to

domestic industry of Pakistan.

Countervailing Duties Ordinances, 2000 The issue of grant of trade distorting subsidies by certain WTO members to their agri-cultural and non-agricultural sectors is one of the signifi-cant issues in the ongoing ministerial trade negotiations. The definition of subsidy con-tains three basic elements: 1. A financial contribution 2. By a government or any

public body within terri-tory of a WTO Member

3. Which confers a benefit to a specific industry/sector

All three of these elements must be satisfied in order for a subsidy to exist. The basic provisions of GATT on the use of subsidies have been elaborated by the Agreement on Subsidies and Countervailing Measures (SCM). The basic aim of these provisions is either to prohibit or to restrain the use of sub-sidies by a WTO Member that affects the interests of other Members. However, where the use of permitted subsidies results in material injury to a domestic industry in an im-porting country, the rules

T H E W T O C E L L N E W S L E T T E R

WTO MEETINGS • 1 March Trade Policy Review Body - Djibouti

• 2 March Sub-Committee on Cotton

• 3 March Committee on Trade and Develop-ment

• 3 March Working Party on the Accession of the Republic of Lebanon

• 8 March WTO Introduction Day

• 10 March Council for Trade in Goods

• 13-17 March Rules Week

• 14-15 March Council for Trade-Related Aspects of Intellectual Property Rights

• 15 March Committee on Technical Barriers to Trade

• 16 March Sub-Committee on Least-Developed Countries

• 16-17 March Council for Trade-Related Aspects of Intellectual Property Rights - Spe-cial Session

• 16-17 March Workshop on Technical Barriers to Trade

• 20-24 March NAMA Week

• 20-24 March Agriculture Week

• 17 March Committee on Technical Barriers to Trade

• 17 March Dispute Settlement Body

• 21-22 March Dispute Settlement Body - Special Session

• 22 March Trade Policy Review Body - United States of America

• 24 March Trade Policy Review Body - United States of America

• 27 Mar-7Apr Services Weeks

• 27-31 March Committee on Government Procure-ment

• 27-28 March Committee on Regional Trade Agreements

• 27 March Sub-Committee on Cotton

• 29-30 March Committee on Sanitary and Phyto-sanitary Measures

• 29 March Committee on Trade-Related In-vestment Measures

• 30 March Working Party on the Accession of Azerbaijan

• 31 March Workshop on Sanitary and Phyto-sanitary Measures

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permit the importing country to take remedial measures, which could take the form of countervail-ing duties on subsidized imports. Pakistan through Countervailing Duties Ordinance, 2000 has given effect to WTO provisions relating to imposition of countervailing duties to offset such subsidies. This has been done by providing a frame-work for investigation and determi-nation of such subsidies and injury in respect of goods imported into Pakistan. Where the National Tariff Commis-sion in Pakistan determines in ac-cordance with the provisions of the Ordinance that any exporting coun-try pays or bestows, directly or in-directly, any subsidy upon the manufacture or production or the exportation of any investigated product including any subsidy on transportation of such product and such subsidy causes injury then, upon the importation of any such product into Pakistan, it is in a posi-tion to impose a countervailing duty

thereon. Standard of injury Similar principles apply when govern-ments take safeguard measures to restrict imports in order to assist a domestic industry that is being injured by a sudden and sharp increase in imports. The standard of `injury' to the industry that must be established to justify safeguard actions is, how-ever, much higher than that required for the levy of anti-dumping or coun-tervailing duties. In the case of safe-guard actions, injury to the industry must be `serious' whereas in the case of countervailing and anti-dumping duties, a lower standard of proof of material injury is adequate. The difference in standards is attribut-able to the fact that in taking safe-guard measures, the industry's prob-lems do not arise from unfair competi-tion, while taking anti-dumping or countervailing measures, these are due to the unfair trade practices of foreign producers.

Conclusion As a result of increased trade under the multilateral trade regime of WTO and the emergence of different countries as exporters of their prod-ucts to Pakistan, the threats arising from enhanced imports are becom-ing imminent for the local industry. These days, one often comes across sporadic complaints in Pakistan that certain products are being dumped by foreign producers or are being subsidized to such an extent that it amounts to serious distortion of the market price to the detriment of lo-cal producers. In view of this situa-tion, it can be anticipated that Paki-stani industries would be availing the trade remedies, more aggres-sively, by making use of Safeguards, Anti-dumping and Countervailing Ordinances, in order to protect themselves against foreign suppli-ers. Courtesy: Mr. Majid Ali Wajid WTO Consultant, Planning & Devel-opment Department

DIPLOMA IN INTERNATIONAL TRADE LAW BY UNIVERSITY OF THE PUNJAB The regulation of international trade, under the World Trade Organization (WTO), has become exceedingly im-portant for countries like Pakistan in an age of Globalization. WTO re-gime, becoming progressively per-vasive, offers on the one hand, enormous opportunities and, on the other, entails unprecedented haz-ards, preparations to make the best use of opportunities and minimize the threats have indeed become im-perative for the economic growth

and alleviation of poverty in develop-ing countries. To make adequate and timely re-sponse to challenges emanating from the WTO, there is an urgent need, among other things, to build the ca-pacity of various stakeholders includ-ing legislators, government function-aries, business entrepreneurs, execu-tives and members of professions such as; law, finance and accounting. The diploma in International Trade (WTO) Law has been designed to

equip such stakeholders with knowl-edge and skills for survival in the pre-sent era of a fast integrating world. Chairman Planning & Development Board, Government of the Punjab inaugurated the diploma on 23rd February, 2006. Member-1, Dr. Shu-jaat, Member Engineering, Dr. Abid Bodla and Additional Secretary (Admin), Mr. Nadir Aqeel have regis-tered themselves for diploma from Planning & Development Department.

US CLEARS PAKISTAN OF COPYRIGHT ABUSE The US government has cleared Pakistan from the threat of having its trade preferences withdrawn af-ter the country took action to clamp down on copyright theft. The petition, filed in 2001 by the US-based International Intellectual Property Alliance, called for Pakistan to be stripped from the US duty-free Generalized System of Preferences (GSP). Pakistani authorities launched a con-certed effort in April last year to de-stroy or confiscate pirated disks,

close counterfeiting plants and arrest those responsible. In recognition of these positive devel-opments, the United States has closed the review of the GSP petition concerning intellectual property rights protection and enforcement in Paki-stan. Under its GSP system, the United States grants duty-free treatment for thousands of products from develop-ing countries. In 2004, Pakistani ex-ports worth $94 million benefited from the scheme.

Pakistan is very conscious of the fact that without an effective, transparent regime to manage, control and disci-pline the use of intellectual property rights, we cannot be serious players in information-technology or any business for that matter because pat-ents have to be respected. Pakistan had set up an intellectual property organization with members drawn from across government and industry to enforce copyrights.

T H E W T O C E L L N E W S L E T T E R

future increases in imported products, business players have said. With lower import duties on the products, more competitive goods from abroad would affect automobile industry, said a sen-ior official. The automotive industry where current import duties on vehicles ranged between 35 to 70%, would see an increase in imports that might hurt local producing units. Like Indonesia, all developing countries must prepare themselves for facing the influx of cheaper imported goods and compete with them. While some devel-oping countries like Malaysia, India, Vietnam etc are gaining from opening of markets, many others have not as yet put their mark on the world com-mercial scenario. 3. Instances of Indian export con-signments facing non-tariff barriers in the US market are on the rise, as tex-tile exports to USA is growing in vol-ume. The restrictions are mainly in the form of shipments being subjected to

rigorous labeling and marketing re-quirement, security parameters and document verification at US ports and issues relating to compliance with labor and environmental norms. It is not for the Indian textile goods alone, but all developing countries complain of similar treatment by US authorities meted out to the exporters from developing countries. Apart from above mentioned barriers, refusal to grant visas to exporters and conditions of prior US registrations of exporters of food items are some of the other barri-ers. The Pakistani exporters must under-stand that it is not they alone who are being discriminated against. Indian exporters too are the victim of similar treatment. But unfortunately, that is the system in which they have to work and survive. The responsibility lies with the federal government to ensure that its exports/ exporters do not face ille-gal barrier not only in USA but in other developed countries also. Chambers of Commerce and trade associations should also take notice of such barriers and try to consolidate all such in-stances with documentary evidence and publish by way of an annual report as is done by US government. The

1. The Director General of WTO, Pascal Lamy said that both Russia and Ukraine, in a gas dispute, should pay for their energy at the market price. One of the stakes of this price dispute is the waste of energy in Russia and Ukraine of today. These countries should pay their energy at the price of today's energy to improve the efficiency of their economies, he added. These views expressed by DG WTO in a dispute between the two coun-tries on the pricing of gas highlight the importance of free market mechanism. Irrespective of the fi-nal outcome of the dispute and the manner in which it is settled, it is quite clear that the principles of market economy hold sway for the settlement of trade disputes. Such principles also help the producers to be competitive and frustrate the inefficient industry to flourish on account of subsidies and at the cost of consumers. Supply of utilities at reduced rates is tantamount to subsidies, which are not permissible under WTO. The member countries are, there-fore, engaged in negotiations for a gradual phase out of such indirect assistance. After a prolonged strug-gle by third world countries and the failure of two WTO ministerials, the developed world has finally come round to withdrawing subsidizes at present offered to some of their industries but more so to farm pro-ducers, which go to the disadvan-tage of poorer nations. The developing countries like Paki-stan are well advised to continue with their restructuring programme at a time when they are not facing as much international pressure. Surely, if Russia can be pressurized to maintain market price, and prima facie it has no option, surely weaker countries cannot resist the pressure. It is, therefore, important to put our house in order, and inte-grate domestic policies in compli-ance with internationally accepted regulations determined by WTO. 2. With the WTO negotiations on free trade in non-agricultural prod-ucts to be finalized in April, Indone-sian industries must immediately make preparations to compete with

mere publication of such reports by all the developing countries will cer-tainly create a moral pressure on countries creating such barriers. However, it must be ensured that the report includes only those barri-ers, which are WTO inconsistent and does not include the steps taken under WTO agreements par-ticularly the Agreement on Sanitary and Phytosanitary Measures. ( C o u t e s y : www.worldtradereview.com)

NEWS & VIEWS

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PAKISTAN JOINS CAIRNS GROUP Pakistan joined the Cairns Group representing agriculture exporting countries belonging to developed and developing nations in the 28th minis-terial meeting of the group and be-came 18th Cairns’ member. The Cairns Group of Agricultural Fair Traders committed to achieve a fair and market-oriented agricultural trading system as sought by the Agreement on Agriculture. The Cairns Group is united in its resolve to ensure that the WTO agriculture negotiations achieve fundamental reform which will put trade in agri-cultural goods on the same basis as trade in other goods. The group brings together developed and developing countries from Latin America, Africa and Pacific Asia re-gion. It has an influential voice in the agricultural reform debate since its formation in 1986, and has contin-ued to play a key role in pressing the WTO members to meet the far-reaching mandate set in Doha. Pakistan is an important producer, importer and exporter of agricultural products, and the sector is the main source of national employment and thus along with other Cairns mem-bers, Pakistan can play a vital role. Other members of the group include: Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Paraguay, Philippines, South Africa, Thailand, and Uruguay.

WTO Cell Planning & Development Department

Civil Secretariat, Lahore.

Phone: +92-42-9210078 e-mail: wtopunjab@hotmail.com Website: www.wtopunjab.gov.pk

Pakistan has played a proactive role to resolve differences among SAARC countries during the process of negotia-tions at the technical level. It was due to these endeavors; that the technical level meeting of all SAARC countries agreed to finalize the agreement in the 29 November 2005 meetings at Kathmandu [ Nepal]. There has been cer-tain news coming into newspapers regarding ratification of SAFTA to which the Ministry of Commerce has taken no-tice of it and has clarified as follows: 1. The SAARC Agreement has four annexes i.e. the list of sensitive items; Rules of Origin; Technical Assistance to

least developed countries of SAARC and Revenue Compensation Mechanism for these countries. It was decided with consensus that the first tariff reduction would be undertaken by all member countries on 1st of July, 2006. Nepal however will do so in August, 2006. Besides, the Revenue Compensation Mechanism would be available to the LDCs of SAARC not before 1st July, 2007. Accordingly, before July, 2006 only the annex relating to Technical Assistance to LDCs can become operational.

2. The SAFTA Agreement clearly provides that SAARC Secretariat shall notify the coming into effect of the Agree-ment once the Instrument of Ratification is deposited by all countries of SAARC. Sri Lanka is not able to ratify the Agreement immediately. Even if Pakistan had deposited this Instrument on 31st December, 2005, the Agree-ment would not have become effective. In any case Trade under SAFTA on Preferential Tariff would not begin before 1st July, 2006.

3. Ratification of the Agreement is in process in accordance with the constitutional and procedural requirements of Pakistan. This process will be completed in a few days and the Government of Pakistan shall then Ratify the Agreement. The Instrument of Ratification would subsequently be deposited with SAARC Secretariat.

4. The news items under reference have also given an impression that India has announced Tariff Reduction of 5%, effective 1st January, 2006. Even if this is factually a correct report; the SAFTA Agreement does not provide for such reductions. As stated earlier, the 1st Tariff Reductions under SAFTA Agreement would take place on 1st July, 2006.

5. The position taken by the Reporters that Pakistan – India trade relations have a direct bearing on our Ratification of the SAFTA Agreement, is baseless. SAFTA is a Regional Agreement and does not address bilateral issues be-tween any SAARC countries. The operation of the Sensitive List has also been misconstrued. The factual position is that the Sensitive List is that List of products where there shall be no reductions in tariff. It has nothing to do with the importability of any product. Besides, as decided with consensus by SAARC countries, this list will under go further changes before it is put into operation with effect from 1st July, 2006.

6. SAFTA Agreement and its annexes have been negotiated by Pakistan with the active consultations of all our stakeholders. The Government has taken all possible precautions to protect the interests of our domestic indus-try and trade. The national laws of Pakistan will hold ground unless these are amended in the legislative proc-ess.

7. Pakistan is committed to the SAARC process which includes Regional growth and alleviation of poverty, and has always honoured its international commitments.

(Source: www.commerce.gov.pk)

MINISTRY OF COMMERCE CLARIFIES MISLEADING NEWS REGARDING SAFTA

The United Sates has committed to donate US$ 100,000 (approximately 127,800 Swiss francs) to help developing countries analyse and imple-ment international standards on food safety and animal and plant health — so-called sanitary and phytosanitary (SPS) standards. This contribution builds on the US commitment to help developing na-tions adopt science-based animal and plant health and food safety stan-dards that are so critical to trade. The donation is for the Standards and Trade Development Facility (STDF), a programme set up for the purpose jointly by the World Trade Organization, the World Health Organization, the World Bank, the World Organization for Animal Health, and the Food and Agriculture Organiza-tion. With this contribution, the United States has become the 9th WTO mem-ber to give funds to the Standards and Trade Development Facility. Since its inception in 2002, the STDF has received over 6 million Swiss Francs in donations (over $4.7 million). With these funds, these STDF has built a portfolio of 15 projects and is financing a further 16 project-preparation grants. Project-preparation grants aim to turn good ideas into projects and are a key way of ensuring the target is met for 40% of STDF re-sources to be spent on least-developed countries.

US GIVES AID ON FOOD, ANIMAL & PLANT HEALTH STANDARDS