WORLD TRADE G/TMB/N/296
23September 1997
ORGANIZATION(97-3857)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Communication from Pakistan
TheTextilesMonitoringBodyhasreceivedacommunicationfromPakistaninreplytoitsrequest
foradditional information1inthecontext ofthepreparation oftheBody'sComprehensive Report on
theimplementation oftheATC during itsfirststage, inaccordance withparagraph 11ofArticle 8.
TheTMB iscirculating thiscommunication toWTO Members fortheirinformation.
1SeeG/TMB/11, issued on14February 1997.G/TMB/N/296
Page2
Permanent Mission ofPakistan
Geneva
27May1997
H.E. Mr.András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Geneva
Dear Mr.Ambassador,
Ihavebeeninstructed bymyauthorities tosendherewith thefollowing comments inrespect
oftheinformation sought bytheTextiles Monitoring Body inconnection withthemajor review of
theATC:
Article 1.2
ATChasnotbeenimplemented inafashion which provides anypreferential treatment
tosmall suppliers. Evenwhere quotas notified totheTMB on1January 1995wereverysmall,
theimporting countries havenotmade anyspecial dispensation forsuchsuppliers either at
thetimeofthecommencement oftheATC provisions orthrough thesubsequent integration
schedules notified totheTMB. Thedefinition ofsmall suppliers should cover countries which
havemarginal access tothemarkets oftheimporting countries inspecific categories.
Article 1.4
Pakistan being acotton producing country hasaspecial interest inexport ofvalue added
textiles. Themajor importing countries havenotallowed anyspecial concessions tocotton
producing andexporting countries likePakistan which would havebeeninconformity with
theletter andspirit oftheATC. Onthecontrary, certain non-cotton producing countries have
beenprovided freemarket access incountries liketheEuropean Union forcategories inwhich
theycompete withPakistan. Theresult isthattheyhavealarger access totheimporting
countries thanthecountries which arefacing quantitative restrictions. Whereas thejustification
forsuchtreatment isonthebasis ofthese countries being LDCs, thewhole justification of
maintaining stringent quantitative restrictions onthecompetition needs tobereassessed.
Article 3.3
Pakistan would comply withthisprovision asandwhen theneedarises.G/TMB/N/296
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Article 3.4
Pakistan willmake thenecessary notifications asandwhen required.
Article 4
Thechanges intheRules ofOrigin notified andimplemented bytheUnited States
in1995havetradedistortive implications. Theexporting countries contrary totheprovisions
ofArticle 4havebeenplaced inasituation ofdisadvantage. Incertain cases, theUnited States
hasevenoffered compensation forpartial acceptance oftheRules ofOrigin (case ofPakistan
forbedsheets). Theoptions available totheexporting countries areeither tolosethetrade
inaparticular category duetotheadministrative changes orseekcompensation through bilateral
consultations. Inviewofthese reasons, there isagrowing perception among theexporting
countries thattheTMB should takeaserious viewofthismatter.
Article 7.1
Thefirstandsecond stage integration schedules announced bythemajor importing
countries fallfarbelow theexpectations oftextiles exporting countries likePakistan. There
isagrowing feeling amongst thetextiles exporting countries thattheintegration schedules so
farannounced havenotresulted inanyenhanced market access forthem. There isagrowing
concern inthesecountries thatthebackloading ofintegrated process isgoing tocause problems
inthefinalstages ofthephase-out. TheTMB should review thismatter tofindwaysandmeans
foramore meaningful integration oftextiles andclothing intoGATT.
Delay inproviding theabove information isregretted.
Regards.
Yours sincerely
(signed) (M.Mumtaz Malik)