Impact of WTO negotiations on agriculture in Pakistan and implications for policy
2001
Chaudhry, M.G. (Pakistan Inst. of Development Economics, Islamabad (Pakistan))
Multilateral trade arrangements finalized under the World Trade Organization (WTO) have brightened the prospects for Pakistan in the export of most major agricultural commodities. Pakistan has considerable potential in export of leather and leather made-ups, spices, flowers, plants and tropical nuts and fruits where developed countries have promised to reduce tariffs by some 40-50 per cent. However, being a net importer of staple foods, Pakistan is likely to face rising food import prices as a result of reduction in agricultural support and export subsidies. The benefits would accrue only if (a) WTO negotiations are fully implemented by all the countries in letter and spirit; (b) sanitary and phytosanitary measures, antidumping and labour laws, environmental protection and quality standards are not misused to restrict trade; and (c) benefits from technological breakthroughs are not restricted to the developed world. For extracting benefits from the arrangements, the developing countries need to lobby for their collective cause, stress the implementation of the Act and to strengthen regional trade associations, such as SAARC and ECO. Moreover, to achieve rapid growth in agricultural output and to augment exportable surpluses, it seems necessary to raise commodity prices to their long term world levels. The emphasis needs to be shifted to improving efficiency of input delivery systems, investing in market infrastructure for exports, and to undertaking steps to ensure quality exports in terms of purity of product, environmental considerations and labour standards.
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