ISLAMABAD (January 06 2004): Pakistan Sugar Mills Association (Punjab Zone) Chairman Javed Kayani commenting on Safta said on Monday that Pakistan needed a sound safeguard to protect its sugar industry from possible dumping of the commodity in the free trade regime.

Kayani, in his statement, strongly welcomed opening up of the trade between the Saarc countries, but expressed serious apprehensions about the likely glut of the Indian sugar with the revision of tariff to the extent of 5 percent over the years.

He said the small growers in Pakistan were apprehensive about the new regimes of WTO and Safta.

Referring to WTO regime, Javed Kayani said our competition in the international market is with subsidised sugar, while the European Union, Australia, and other sugar producing countries give heavy subsidy to export their surplus produce to protect the interests of their farmers, adding once the WTO regulations are implemented the sugar industry shall not be faced with allegations that Pakistan is not competitive in the world market.

He said: "Once the European Union and others bring a halt to subsidies, we can compete in the international market as well".

He said the import duty on sugar in India is 60 percent along with a counter-vailing duty of Rs 850, and they have joined Brazil in a complaint against the European Union subsidies, and their petition is lying with dispute WTO settlement body.

Javed Kayani proposed that Pakistan should join India to strike regional harmony as for as the trade of sugar is concerned between the two countries, saying Pakistan should carefully look at the positive and negative list to safeguard the interests of the stakeholders in the country, and protect its own indigenous industry.

Courtesy Business Recorder