Although the aim of the WTO/GATT is to promote trade amongst the member countries, but still people have quite a few apprehensions about the new trade order.
More and more business circles view the WTO/GATT as a tool used by the West or the capitalists to capture the rich and vast markets of the Third World countries, leading to the elimination of the already troubled local industries of these countries.
More commonly, this so-called new trade order is labelled as a conspiracy of large multinational companies and corporate giants to systematically eliminate competition and capture the global market with their huge resources and impeccable production facilities, with the top of the state of the art technology, using the cheap labour of these areas. Ultimately and eventually controlling the economies of these states.
It is also being presumed that institutions like the IMF, World Bank and even the United Nations have lost their effectiveness and credibility, specially when viewed in the recent sequel of events and have become just another power tool of the United States to manipulate the poor countries and to enforce its undue and unjust policies.
Since many of US and other countries have come to know the reality of these institutions and the tactics used by them, these old magicians have come up with old wine in new and more attractive bottles, apparently chanting, the song of fair and free trade, along-with many other similar catchy slogans.
But have we ever though about what is being offered and who is offering it. The WTO is making rules for this world trade order, the so-called new international standards, made by the West, for the Westerners to which we are being forced, seem a remote possibility for people who are merely striving to earn their bread and butter.
The irony is that most of these standards are linked to the new technology available only on the developed countries. It literally means the opening up local markets for foreign companies who not only have the technological edge over the locals but also have ample resources to market their products on competitive prices, even if it means to bear the losses initially, but it would eventually eliminate the local industry.
This seems so obvious that even a lay man can derive this conclusion. This whole new system, however, promises better prospects to the consumer in the shape of quality products at reasonable prices and in an abundant variety as well as, backed by a massive advertising campaigns.
With lots of glamour, sugar coated in beautiful catchy slogans, displayed by ultra-mod chicks exposing their bodies more than the product itself, so on and so forth, haven't we seen all this before?
The question, however, is that why are we so obsessed with the West. We already know where this will lead to, don't we?
The answer lies perhaps within the deep-rooted tradition of slavery, still being practised by to top notches and trend-setters.
Why can't we just be what we are? It is that simple but is unfortunately ignored by most of us.
We are living in a free country but we are not only proud of imported products but of such cultures, too. Bravo! What a nation and what a culture, we now can well imagine what will happen if the borders of free trade are opened.
The WTO/GATT fundamentally aims and strives for implementing the following four basic rules.
1. The first rule, while recognising that it is important for member countries to follow open and liberal trade policies, permits them to protect domestic production from foreign competition, provided that such protection is extended through tariffs and is kept at a low level.
To this end, it prohibits countries from using quantitative restrictions, except in specified cases. The rule against the use of quantitative restrictions has been strengthened recently.
2. The second rule provides for the reduction and elimination of tariffs and other barriers to trade through multilateral negotiations. The tariffs, so-reduced, are listed on a tariff line basis in each country's schedule of concessions.
The rates given in these schedule are known as bound rates. Countries are under an obligation not to increase tariffs above the bound rates shown in their schedules.
3. The third rule requires countries to conduct their trade without discriminating among countries from which goods are imported or to which the goods are exported.
This rule is embodied in the most-favoured-nation principle. An important exception to this rule is permitted in the case of regional preferential arrangements.
4. The fourth rule is known as the national treatment rule. It requires countries not to impose on an imported product, after it has entered their domestic markets, on paying customs duty at the border, and internal taxes such as the sales or value-added tax at rates higher than those levied on a similar domestic product.
The above stated rules are encircled with lengthy and dubious nitty gritty details which are not only difficult to comprehend but also even harder to implement.
Only experts of business and commerce could point out the implications of the proposed system by WTO/GATT.
Hence it is requested that the same may be reviewed by a Pakistani panel of experts, recommending necessary measures thereupon to the govt and public. It is also requested that the implications of the WTO trade order be widely published and debated in order to create awareness and to reap the benefits, if any. Similarly adverse effects also need to be highlighted adequately.