Uzair bin Farid

The National Assembly’s Standing Committee on Commerce has unanimously approved two bills, namely Trade Dispute Resolution Bill, 2022 and Trade Organization (Amendment) Bill, 2022. The meeting was told that a lack of proper mechanism for the resolution of trade disputes is hurting Pakistan in the rankings of Ease of Doing Business Index (EODB) of the World Bank.  Secretary Commerce, Muhammad Sualeh Ahmed said that these bills will allow Pakistani exporters to file complaints against their foreign partners here in the country.

The meeting was chaired by Khursheed Ahmed Junejo while Minister for Commerce, Syed Naveed Qamar; MNAs Usman Ibrahim, Shaza Fatima Khawaja, Muhammad Aslam Bhootani, Dr Ramesh Kumar, and Shaista Pervaiz were in attendance. The meeting was informed about the increase in the number of trade disputes because of Pakistan’s trade liberalization under the World Trade Organization (WTO). Therefore, it was emphasized that a proper mechanism should be introduced to keep the Pakistani exporters on a safe side through having a dispute resolution mechanism in the country.

The secretary said that there is no mechanism in Pakistan to solve disputes of Pakistani exporters with their foreign partners. The Imports and Exports Control Act 1950 only addresses the disputes of foreign importers with Pakistani exporters. He highlighted that arbitral award will be enforceable in any country which has ratified the UN Arbitration Convention. He added that the new law will be swift, inexpensive, and expeditious. “It will also build trust between Pakistani exporters and their foreign partners and improve Pakistan’s position in the EODB rankings of the World Bank.”

He continued, “Pakistani exporters will get a level-playing field and through alternative dispute resolution mechanisms courts will also be relieved from a lot of unnecessary burden.” The draft trade dispute resolution bill also proposes five independent members for a Trade Dispute Resolution Commission (TDRC), headed by a chairman. While discussing the Trade Organization (Amendment) Bill, 2022, Commerce Minister Syed Naveed Qamar said that with the approval of the Bill, elections of chambers and other trade organizations will be held after every two years instead of one year. He added that the new laws will be applicable from January 2023.

Credit : Independent News Pakistan-WealthPk