RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/186
22 February 2000
(00-0650)
Council for Trade in Goods Original:  English
QUESTIONS FROM THE GOVERNMENT OF THE UNITED STATES
REGARDING THE TRIMS EXTENSION REQUEST MADE
BY THE GOVERNMENT OF PAKISTAN
Measures
1. Please describe in detail the measures that are included in the Government of Pakistan’s
(“GOP”) request.  Could the GOP please elaborate beyond the description provided in
previous submissions.  For example:
(a) What domestic and foreign producers are entitled to take advantage of the program?
(b) In what sectors do the producers affected by these measures operate?  When was each
of these sectors added to the program?
(c) What percentage of local content is currently required for each of the producers
affected by these measures?
(d) What kinds of local goods qualify to meet the local content amounts (anything?  some
parts but not others? etc.)?
2. How have the measures changed over time?
(a) Have there been any changes to the measures covered by your extension request since
1 January 1995?  If so, what are they?  For example, have these measures increased
the amount or percentage of local content required since 1 January 1995?  Please
provide copies of any laws, regulations, notices or other documents implementing or
announcing any such changes.
(b) Your notification (G/TRIMS /N/1/PAK/1) states that “the programme encompasses
the engineering, electrical goods and automobile industries” while your extension
request seems to describe a broader program which “includes such sectors as general
engineering, electrical goods, agricultural equipment and automobile industry, etc.”
Has the program been expanded to cover more sectors since your initial notification?
(c) Your TRIMs notification states that there is an advantage given to participants in this
program in the form of “concessionary rates of tariff for the import of specified
components and parts.”  Is this still accurate?  If so, please list the concessionary
tariff rates provided for each participant in the program.
(d) What methodologies are used to decide what the rates will be and which products will
be eligible for the reduced rates?
(e) What is the total value of these reduced tariffs over the entire economy?
3. The implementing agency, as listed in the GOP’s TRIMs notification and extension request is
the Ministry of Industries and Production.
(a) What responsibilities does this organization have generally?G/C/W/186
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(b) What is its responsibilities with respect to both the TRIMs measures and more
generally the sectors covered by the TRIMs program?
(c) Are there any other GOP agencies or other entities or persons with responsibility for
implementing or otherwise supervising the measures identified in question 1?
Basis for the Extension Request
4. The GOP extension request provided to the Council for Trade in Goods provides several
reasons why an extension is necessary.  Please elaborate on the basis for your request, for
example:
(a) How was the seven-year period determined?
(b) What was the empirical evidence examined to gauge that at least seven years would
be required?
(c) Describe the “forward and backward linkages” that would be “adversely affected” if
the TRIMs are removed.
(d) Please describe the “negative impact on investments” mentioned in your request.
What research has been undertaken to show  that investment would decrease if the
measures were removed?
(e) What would be the specific effect on the balance of payments situation in Pakistan if
the TRIMs were removed?  Provide any statistical or other information that
demonstrates any such effect and the linkage of this effect to the removal of TRIMs.
(f) Describe the technology transfer that would be impeded if the TRIMs were removed.
What studies have been done to verify this statement?
(g) Article 5.3 of the TRIMs Agreement requires the Council for Trade in Goods to
conclude that an applicant for an extension has demonstrated “particular difficulties.”
How does the GOP consider that the difficulties it has described fit this requirement?
(h) What makes these difficulties different from other Members’ situations?
5. Another key factor to focus on is employment:
(a) What is the basis for the statement that removal of the TRIMs would cause
“displacement of labour and unemployment?”
(b) What was the total employment in the firm s that participate in the program covered
by the request before the TRIMs policy was implemented?
(c) What is the current total employment in the firms that participate in the program
covered by the request?
(d) Is there any basis for an assumption that jobs will be created by the continuation of
the TRIMs-related policy after 1 January  2000?
(e) Which entity, agency or persons analyzed your employment estimates?
6.  With respect to “development, financial, and trade needs” referenced in Article 5.3:
(a) How is the maintenance of these TRIMs part of the development plans and needs of
Pakistan?
(b) How long have such TRIMs been part of the development plans and needs?
(c) How can it be determined that these same development policies will not still be used
and needed after a seven year period?  Why should one expect that this policy will be
different 1, 2, 5, or 10  years from now especially given that Pakistan is requesting a“minimum” of seven years?
(d) Were the GOP’s development policies part of the development needs and plans of the
GOP prior to the Uruguay Round?
(e) What are the financial needs of the GOP related to the maintenance of the TRIMs?G/C/W/186
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(f) What analysis has been conducted to determine whether the elimination of the TRIMs
would actually increase, decrease, or be neutral concerning the financial needs of
Pakistan?
7. Regarding other particular issues that the GOP believes should be taken into account, please
describe and discuss how the policy serves to:
(a) optimally exploit domestic resources
(b) promote transfer of technology
(c) enhance linkages between large, medium and small-scale industries
(d) safeguard the external financial position of the economy
(e) contribute to a steady growth in per capita income in real terms thus raising the living
standards of the people
8. Please describe the industries covered by your extension request in detail.  What efforts have
they taken to modernize or be more competitive internationally over the last five years?
9. Prior to making the decision to request an extension, what measures had the relevant
industries and the GOP undertaken to begin the transition to a system that did not rely
on TRIMs? 
(a) What types of liberalization adjustments were or were not completed?
(b) At what point did the GOP make the decision to stop this process of becoming
TRIMs consistent (or does the process continue)?
(c) What would the process be for changing the local content requirements – ( i.e.,
administrative changes, legislative changes)?
(d)  How quickly could such changes be conducted?
10. What types of efforts were undertaken to prepare the relevant industries for the removal of
TRIMs on 1 January 2000?  Specifically:
(a) Did the GOP conduct discussions with the private sector and with labour
organizations at that time and even well before the completion of the Uruguay Round
to inform them that these policies would be eliminated in 2000?
(b) What kind of domestic consultation process concerning TRIMs has been conducted
over the past five years?
(c) What administrative or legislative steps have which offices and officials explored
with which industry and labour groups?
(d) Are there legislative or administrative drafts that have been submitted for
consideration over the past 5 years?
(e) What plans exist for adjusting to the elimin ation of such TRIMs if there is no grant of
an extension from the Council?
11. Has the GOP considered other non-TRIMs options that would protect the domestic industries
but would allow for the elimination of your TRIMs regime as it currently exists?  For
example:
(a) Why is it necessary to retain the local content requirements in all sectors?
(b) Please describe the analysis/research that the GOP undertook to ensure that all
measures need to be retained.G/C/W/186
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Statistics
12. What is the GOP’s estimation of future foreign investment in its domestic market by
manufacturers that participate in the TRIMs program covered by the extension request?
13. What is the history of investment inflows due  to the Pakistan TRIMs program?  Specifically:
(a) Has investment in the sectors covered by the TRIMs program increased since the
policy was introduced?  If so, detail the increase.
(b) From which WTO members have the investments originated?
14. What are the destinations for exports from Pakistan for 1998 (i.e., what countries) for the
firms covered by the measures under discussion and what are the values and the quantities of
the exports to each market?
15. What are the figures for production and sales of the items manufactured by the firms covered
by the measures under discussion for 1996, 1997, 1998, and, if available, 1999?  In addition,what is the forecast for these firms for the year 2000?
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