One-sided FTA signed with China in 2006: NTC chief

 Says similar agreements being inked with Turkey and Thailand

FAISALABAD: The National Tariff Commission (NTC) is undertaking a record 18 to 19 investigations after the promulgation of new ordinance issued in March 2015, said NTC Chairman Muhammad Abbas Raza.

Addressing an awareness session about recent changes in NTC laws at the Faisalabad Chamber of Commerce and Industry, he said the ultimate objective of the NTC is to provide a level playing field to the local industry in the wake of globalization. He also spelled out the structural changes made in the NTC ordinance and said that earlier it had only two members along with one chairman while now the number of its members had been increased to four. “It is also for the first time that the professional competence of the chairman and its members have been defined”, he added.

He said the NTC has two kinds of roles; one is mandatory which includes anti-dumping, countervailing and safeguard measures. The NTC has authority to fix tariffs, etc, while the other part of its duty is to make recommendations to government on competitiveness of the local industry. He said that commission has also fixed a timeline to resolve the issues within 60 days while in case of recommendations the government and the commerce ministry is also bound to follow the time line of 15 days.

He said regarding the anti dumping law, a clause of lesser duty rate has also been introduced. However, it would not be applicable in case of imports under Duty and Tax Remission (DTRE) scheme.

Responding to a question, he clarified that regarding competitiveness, the tariff of gas and electricity did not fall within its preview. He said the commission has also prepared a checklist in connection with anti-dumping duty which will bring much needed transparency in the complicated anti-dumping laws.

The chairman said Pakistan has signed a one-sided Free Trade Agreement (FTA) in 2006 with China which had negative repercussions on Pakistani industry. Now we are again going to ink similar agreements with Turkey and Thailand, which must be made reciprocal for the benefit of our industry.

Raza said Afghanistan has also become a member of WTO and under this agreement we are bound to give this land locked country access to the international markets. Similarly, the China-Pakistan Economic Corridor (CPEC) project is also in the pipeline and we must remain cautious and take necessary measures to protect our domestic industry.

About the regulatory duty on imports, the chairman said basically it is the prerogative of finance ministry and the FBR. However, now the International Monetary Fund (IMF) has raised objections on it and in near future it will become difficult for the finance ministry to clamp such duty without proper studies and analysis which falls within the domain of the NTC.