./.  WORLD TRADE  
ORGANIZATION  G/C/W/480 
30 January 2004 
 (04-0250) 
Council for Trade in Goods Original:   English 
  
 
QUESTIONS FROM THE UNITED STATES ON PAKISTAN'S REQUEST (G/C/W/478) 
FOR EXTENSION OF THE TRANSITION PERIOD UNDER THE AGREEMENT 
ON TRADE-RELATED INVESTMENT MEASURES 
  
 The following communication, dated 28 January 2 004, is being circulated at the request of the 
delegation of the United States. 
 
_______________ 
  
1. Pakistan's request appears to suggest that measures inconsistent with the TRIMs Agreement 
have been eliminated in all but 16 areas or programmes in the automobile sector. 
 
• Is this reading of the request correct? 
 2. We would like to understand better the character  and effect of the measures covered by this 
request: 
 
• What are the programmes to which the request refe rs:  Are they specific measures, or are they 
specific measures or sets of measures that apply to a particular industrial component, facility, 
or sector? 
• How do these programmes work, and in what respects are they not consistent with the TRIMs 
Agreement? 
• Which domestic and foreign producers are aff ected by these measures, and in what ways? 
• What percentage of local content is currently required for each of the producers or industries 
or product categories affected by these measures? 
• What kinds of local goods qualify to meet the local content requirements? 
• Have any firms or businesspeople in the relevant  sectors or importing products into Pakistan 
chosen not to participate in the TRIMs program? 
 3. Have the measures covered by this extensi on request changed since they were notified in 
1995?  If so, please describe the changes.  
4. Article 5.3 of the TRIMs Agreement gives th e CTG authority to extend the TRIMs transition 
period for a Member that has "demonstrated partic ular difficulties in implementing" the Agreement's 
provisions.  In 2001, Pakistan identified several di fficulties it had encountered in implementing the 
TRIMs Agreement.  These included international sanc tions, reduced foreign investment inflows, and a 
general economic slowdown.  Since that time, the sa nctions have been removed, foreign investment 
inflows have increased, Pakistan's economy has recorded excellent growth, and, according to 
Pakistan's request, the auto sector has gr own 49.8 percent during the 2002-2003 period. 
 
• Please describe the "particular difficulties" that currently prevent the government of Pakistan 
from eliminating the remaining TRIMs measures. 
 G/C/W/480 
Page 2  
 
5. Will the phase-out of the remaining TRIMs re quire any legislative action or extraordinary 
administrative steps?  If so, please describe th e relevant procedures and their difficulty. 
 6. If its request for an extension were granted, would the government of Pakistan plan to take 
any intermediate steps to phase-out the remaining measures over the course of the three-year period, 
or would the government plan to eliminate all of th e measures near the end of 2006?  Please describe 
any phase-out plan or intermediate steps that are being considered. 
 7. Is the government taking any steps to prepare the relevant industries and firms for the removal 
of the TRIMs at the end of the proposed trans ition period?  If so, please describe these steps. 
 
8. Prior to submitting this request, had the rele vant industries or the government of Pakistan 
taken any steps to begin the transition to a system that did not rely on TRIMs?  Please describe any such steps.  
9. Has the government of Pakistan considered options other than the maintenance of TRIMs 
measures to support the relevant industries and firms?  For example, why is it necessary to retain local 
content requirements in these sectors?  10. Pakistan's April 1995 TRIMs notification (G/T RIMS/N/I/PAK/1) stated that participants in 
the indigenization/deletion program benefited from "concessionary rates of tariff for the import of 
specified components and parts." 
 
• Is this still accurate? If so, please provide a lis ting of the concessionary tariff rates provided 
for each participant in the program. 
• Please also provide a description of the me thodologies that are used to decide what 
concessionary tariff rates will be offered and which products will be eligible for them. 
 
11. Please provide estimates of the changes in em ployment, tax revenues, and export values that 
would result from immediate complia nce with the TRIMs Agreement.  What is the methodology used 
for arriving at these estimates?  12. For the two years for which the most recent data is available, please provide the country 
destinations, quantities, and values of the exports manufactured by the firms covered by the measures 
under discussion.  13. Pakistan's original TRIMs notification repor ted that the indigenization/deletion programme's 
implementing agency was the Ministry of Industries and Production.  
• Is the Ministry of Industries and Production s till the lead agency, or has supervision of the 
program changed since 2000? 
• Are any other government entities or persons res ponsible for implementing or supervising the 
measures? 
 
__________