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MFN Status: Automobile industry assured of protection in liberal regime
By Farhan Zaheer
Published: November 13, 2011
KARACHI:
The government has assured auto parts manufacturers that the domestic industry will be protected and a negative list will be maintained in trade with India despite recent moves to further open up commerce between the two countries, a stakeholder in the auto industry said.
The automobile industry is satisfied with the assurance given by Secretary Commerce Zafar Mahmood, said Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Syed Nabeel Hashmi.
Speaking to The Express Tribune over phone on Saturday, Hashmi said Paapam and the secretary commerce had held a series of meetings in which a committee was formed to finalise a negative list for the auto industry.
The negative list contains items on which the government imposes import duties to protect the local industry.
We have to shield our industry and develop it in the long run. This is why we prefer to adopt a go-slow policy as far as trade liberalisation with India is concerned, Hashmi said. Later, when we develop our industry, we will open it up to India to compete freely.
The auto parts makers have asked the government to restrict the import of finished auto products from India to enable them to develop the industry with joint ventures and technical collaboration with Indian companies.
Only then, we can compete with Indian auto manufacturers who have big economies of scale that help them reduce cost of production, he said.
Hashmi cited costly raw material and low economies of scale for Pakistani manufacturers, which made their products expensive and rendered them uncompetitive.
The auto industry has welcomed trade liberalisation with India but it has some reservations about import of certain finished products which are also produced in Pakistan. They say if Pakistan imports the finished products, the growth of local industry will come to a halt.
However, they support the import of machinery and raw material and collaboration with the Indians in technical assistance.
Published in The Express Tribune, November 13th, 2011.
By Farhan Zaheer
Published: November 13, 2011
KARACHI:
The government has assured auto parts manufacturers that the domestic industry will be protected and a negative list will be maintained in trade with India despite recent moves to further open up commerce between the two countries, a stakeholder in the auto industry said.
The automobile industry is satisfied with the assurance given by Secretary Commerce Zafar Mahmood, said Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Syed Nabeel Hashmi.
Speaking to The Express Tribune over phone on Saturday, Hashmi said Paapam and the secretary commerce had held a series of meetings in which a committee was formed to finalise a negative list for the auto industry.
The negative list contains items on which the government imposes import duties to protect the local industry.
We have to shield our industry and develop it in the long run. This is why we prefer to adopt a go-slow policy as far as trade liberalisation with India is concerned, Hashmi said. Later, when we develop our industry, we will open it up to India to compete freely.
The auto parts makers have asked the government to restrict the import of finished auto products from India to enable them to develop the industry with joint ventures and technical collaboration with Indian companies.
Only then, we can compete with Indian auto manufacturers who have big economies of scale that help them reduce cost of production, he said.
Hashmi cited costly raw material and low economies of scale for Pakistani manufacturers, which made their products expensive and rendered them uncompetitive.
The auto industry has welcomed trade liberalisation with India but it has some reservations about import of certain finished products which are also produced in Pakistan. They say if Pakistan imports the finished products, the growth of local industry will come to a halt.
However, they support the import of machinery and raw material and collaboration with the Indians in technical assistance.
Published in The Express Tribune, November 13th, 2011.
