. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/199
4 April 2000
(00-1371)
Council for Trade in Goods Original:  English
QUESTIONS FROM THE EUROPEAN COMMUNITIES REGARDING
THE PAKISTAN REQUEST PURSUANT TO ARTICLE 5.3
ON THE AGREEMENT ON TRIMS
The following communication, dated 4 April 2000, has been received from the Permanent
Mission of the European Commission.
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EC Questions
1. Please describe in detail the measure for which the GoP is requesting an extension (local
content percentages, sectors and type of investment, type of producers to which it applies, product
coverage etc.).
2. We understand that fulfilment of TRIMs is a condition to obtain certain advantages, in the
form of “concessionary rates of import tariffs”.
a) What is the level of the “concessionary rates” as compared to normal rates?
b) What is the basis for calculation of the concessionary rates?
3.  Please quantify the total value of these benefits (foregone customs duties) on a yearly basis
for the period 1987-1999 and describe how they accrue to beneficiaries.
4. The sectors mentioned in your request for extension (G/C/W/173) are: general engineering,
electrical goods, agriculture equipment and automobile industry:
a) Are there other sectors to which the TRIMs have applied in the past? If so, please
describe how the TRIMs applied thereto and when and how they were phased out.
b) Were all sectors mentioned in your request for extension originally covered by the
legislation establishing TRIMs, or has any been included after the coming into force
of the legislation?
c) Please describe the evolution (if any) of the present legislation as compared to the
original 1987 legislation;
d) Please describe the main features of the Pakistani industry in the sectors at stake
(including parts and components).
d) Please describe the facilities in question (investors, level of investment, location, and
type of production, markets etc.)
5.  What has been, according to the GoP, the effect of the legislation establishing TRIMs on
Foreign Direct Investment  (FDI) in the relevant sector?  Do you consider that the existing TRIMs
have attracted or rather discouraged inflows of FDI?G/C/W/199
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a) Please provide a breakdown of FDI by country of origin in each of the relevant sector
for the period 1980-1987 and for the period 1987-1999
6. Why do you consider that the TRIMs have been effective in developing Pakistan’s industry in
the sectors concerned:
a) Please provide annual data for the period 1991-99 as regards:
  - Value and volume of production
  - Main export markets.
7.  What measures has the GoP undertaken, in the periods 1995-1999, to prepare for the
elimination of the TRIMs in question? Please explain in detail (legislative process, industrial policyelements, consultations with industry etc.)
a) When did the GoP realise that it would be unable to meet the deadline of 31
December 1999 to phase out the TRIMs?
8. Why did the GoP wait until 28 December 1999 to notify its requests for extension?
9. Please describe in detail why maintaining the TRIMs is essential for Pakistan’s development,
financial and trade needs.
10. Please provide an evaluation of the direct impact of the TRIMs on employment, existing
investment, Foreign Direct Investment flows in the relevant sectors and describe the methodology
used to arrive at your assessment.
11.  Why did the GoP request an extension for 7 years, until 31 December 2006?
How did the GoP arrive at the conclusion that this period of extension was needed? Please explain in
detail.
12. What further measures does GoP plan to enforce during the period of requested extension, toprepare for elimination of the TRIMs?
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