National Tariff Commission

1
National Tariff Commission Pakistan Current
Situation and Prospect of Pakistans Application
of Trade Remedy Instruments Beijing, June
25-26, 2007
2
Outline of Presentation

• Current Situation
• Current Situation in relation to China
• Prospects

3
Pakistan and WTO

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

4
Functions of the Commission

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

5
Compliance with WTO Agreements

• Pakistans Trade Defense Laws strive for strict
  conformity with respective WTO Agreements, i.e.,
• Agreement on Implementation of Article VI
• Agreement on Subsidies and Countervailing
  Measures
• Agreement on Safeguards

6
Implementation of Trade Defence Agreements
Actions by Pakistan

• The Commission initiated twenty-four AD
  investigations and one safeguard investigation
  since 2002
• Imposed measures in nineteen cases
• Five AD investigations and the safeguards
  investigation were terminated without any measure

6
7
Implementation of Trade Defense Laws Actions
Taken by Pakistan
7
8
Implementation of Trade Defense Laws Actions
Taken by Pakistan, continued
9
Pakistan Anti-Dumping Activity
Pakistans AD activity follows the worldwide
trend of steel and chemical products being
targeted relatively frequently
10
Worldwide Anti-Dumping Activity
Source WTO Website (Period - January 2005 to
June 2006)
11
Investigation Opportunities provided to
Interested Parties

• Comments on Application and Initiation
• Right to present information, including orally
• Comments on Preliminary Determination
• Hearing upon request
• Comments on Statement of Essential Facts
• Meetings with interested parties with adverse
  interests
• Access to public file

12
Additional Opportunities for Exporters

• Reply to the Exporters Questionnaire
• Request for Individual Dumping Margin
• Price undertaking
• Disclosure Meetings upon request

13
Determination on basis of Facts Available

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

14
On the Spot Investigation

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

15
Transparency

• Throughout the investigation, the Commission
  keeps all interested parties informed of the
  developments in an investigation through
• Notices and Reports
• Public File established and maintained in each
  investigation

16
Transparency

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

17
Transparency

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

18
Appeal against Determination

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

19
Outline of Presentation

• Current Overall Situation
• Current Situation in relation to China
• Prospects

20
Applications received in relation to PRC
exporters

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

21
Anti-Dumping Cases Relating to PRC Exporters
22
Trade Defense Laws Litigation in Domestic Courts

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

22
23
Outline of Presentation

• Current Overall Situation
• Current Situation in relation to China
• Prospects

24
Prospects

• Existing and emerging tariff regime
• Growth in imports
• Growth in domestic and export demand
• The Antidumping Agreement

25
Pakistans 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 Pakistans Bound
Rates
28
Swiss Formula Implications for Pakistans 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
Pakistans Imports
(Million of USD)
Source IMF - Direction of Trade Statistics
31
Major Imports of Pakistan
Source Economic Survey of Pakistan 2006-07
32
Pakistan Direction of Imports
Millions of USD
Source Direction of Trade Statistics, IMF
33
Growth in domestic and export demand

• Pakistan current year GDP growth projected at 7
  per cent
• Major export markets, the IMFs Advanced
  Economies, are expected to grow at 2.5 and 2.7
  per cent in 2007 and 2008
• IMF projects the important export market of
  Developing Asia to grow at 8.8 and 8.4 per cent
  in 2007 and 2008

34
Exports from Pakistan
Millions of USD
Source Direction of Trade Statistics, IMF
35
THANK YOU
36
Implementation of Trade Defense Laws
Anti-Dumping Actions Taken by Pakistan
37
Implementation of Trade Defense Laws
Anti-Dumping Actions Taken by Pakistan
38
Imports From PRC
Source IMF Direction of Trade Statistics
39
Composition of Imports from PRC(July-December
2006)