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Indian ban on cotton import

Pak plan to move WTO, an exercise in futulity

JAVED MEHMOOD

ISLAMABAD: Pakistan's decision to approach the World Trade Organisation (WTO) against ban on import of local cotton by India, is being seen an exercise in futility.

Senior officials in the Ministry of Commerce told Business Recorder that the WTO normally takes more than one year to decide a trade dispute between the two countries and by that time the next crop would be ready for export.

"If we submit a written request to the Dispute Settlement Board of the WTO against, Indian decision within this week the WTO will take three months period to notify a committee to take up this case", said sources.

Similarly, the committee would also consume many months to hear this case, getting views from both the sides and in finalising its verdict.

"We will certainly take this case to the WTO against illogical banning of import of our raw cotton by India, but will get nothing from this case", added the sources.

The officials, however, hoped this decision of India might be a blessing in disguise for Pakistan. Because, they said, India would have to import raw cotton from the international market to meet its requirement as a result the prices of the cotton would surge and Pakistan can take advantage by exporting its surplus cotton to different countries.

In the coming few days the export of raw cotton may become slower due to ban by India, but within a couple of months the situation would be quite different and there would be a demand for cotton in the international market at better prices, said sources.

Sources said that the Indian textile manufacturers would also be the victim of the decision of their government as they were importing cotton from Pakistan at the rate of Rs 1200 per bale against their domestic price of Rs 1900 per bale.

It was learnt on Monday that the Ministry of Food & Agriculture and Commerce remained busy gathering facts to challenge the Indian allegation of contamination and diseases in the local raw cotton.

In the next few days the Ministry of Commerce is expected to file a written complaint to the WTO against India.

Sources said that in 1999-2000 the Ministry of Commerce has worked out export of 0.9 million bales of raw cotton from the country, 0.4 million by the private sector and 0.5 million by the Trading Corporation of Pakistan.

Now the TCP and private sector would have to divert cotton to other markets than India.