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WTO Trade Policy Review of Pakistan

Statement of Mr. LI   Enheng, Minister and Deputy Representative,

Permanent Mission of China to the WTO

 (16 January, 2008)

Mr. Chairman:

I would like to join the previous speakers in welcoming the delegation of Pakistan headed by H.E. Mr. Shazada Alam Monnoo, Federal Minister of Commerce, and Ambassador Manzoor, and in thanking him for his comprehensive statement. I take this opportunity to thank the Secretariat and the Pakistani government for their tremendous efforts for the review. Our thanks also go to the discussant, H. E. Ambassador Karen Tan, for her insightful observation on the trade policy of Pakistan.

Mr. Chairman, as a close and friendly neighbor of Pakistan, China is pleased to note that Pakistan has made impressive economic progress since its previous review, with an average annual GDP growth rate of 6% and remarkable poverty reduction. It is commendable that during the period under review, Pakistan has continued to undertake systematic efforts to increase the pace of its economic reform, guided by the Government’s Poverty Reduction Strategy Paper (PRSP). We are also pleased to learn that Pakistani economy has become more outward-oriented, with trade in goods and services rising from 30.5% of GDP to 36.1% during the period under review, and inward FDI rising tenfold during 2003-07 to record levels. We encourage Pakistan to continue its macroeconomic reform so as to improve its domestic savings along with productivity and international competitiveness.

Mr. Chairman, bilateral trade between China and Pakistan has been increasing rapidly in recent years. In 2006, it reached US$5.3 billion, an increase of 23% over the previous year. During the first 11 months of 2007, trade between our two countries reached US$6.3 billion, an increase of 35% over the same period of the previous year. The various bilateral initiatives developed in recent years set detailed goals for future economic cooperation. We would expect that our bilateral trade would reach US$15 billion by the year 2010.

Furthermore, to deepen and broaden our economic engagement and interaction, China-Pakistan FTA on goods came into force on July 1, 2007. Negotiations on trade in services for a similar goal commenced in April 2007 and are expected for conclusion before long. Last April, China and Pakistan signed The Projects Implementation Regulation for the 5 year Development Program on Economic Cooperation which constituted another major step to promote wider, deeper and higher level China-Pakistan trade and economic cooperation with a view to achieving mutual benefits and common development. As the third largest FDI sources of Pakistan, China set up with Pakistan a Joint Investment Company in July, 2007 to facilitate cooperation between the financial institutions and make effective use of the capital markets of the two countries.

With respect to Pakistan’s trade policy, China has submitted a few written questions. We appreciate the work done by the delegation of Pakistan for providing us with the responses this morning.

Mr. Chairman, Pakistan is an important player in the multilateral trading system. As a member of the G20, G33 and “Cairns Group”, Pakistan plays a unique role in pursuing development-dimension of the Doha Round negotiations, We particularly commend the personal contribution made by Ambassador Manzoor as Chair of the TRIPs Council Special Session for the DDA negotiations around the well-known issues of GI and the relationship between TRIPs and CBD. China will, as always, continue to work closely with Pakistan and other Members to bring this Round to a successful conclusion.

Finally, we wish the trade policy review of Pakistan a success. We also wish smooth, stable and further social and economic development of Pakistan.

Thank you, Mr. Chairman.