13 Sep, 2004
WTO and Pakistani citrus exports
By Ch. Muhammad Sharif and Dr Bashir Ahmed
Citrus are the largest produced fruits in Pakistan. The country produces
about 8 per cent of world production, with only 0.5 per cent share in the
international trade.
Exports have increased in recent years. Net returns are sufficient but
some problems like lack of exploration of new markets, transportation,
high duties and non-availability of quality packing material hinder export.
The upcoming WTO-related concerns have posed challenges as well as
opportunities to our agriculture sector. Pakistan needs to meet
challenges and avail opportunities in all sub-sectors.
Increased production is the key to promoting the export of horticultural
crops. However, lack of incentives and high-tech guidance from the
extension department hinder the process.
Most plants are locally-manufactured, and are meant only for processing
mandarin. The suppliers/contractors do not undertake proper grading
before supplying produce to factories.
After grading, a significant quantity is canalized back into the domestic
market adding costs and delaying processing. Foreign demand is so
small that exporters resort to competition among themselves and most of
them are operating in neighboring markets.
Inputs like good quality wax and other packing materials are also not
easily available. The government policies towards the promotion of citrus
export are inconsistent and irregular.
It has been observed that the WTO requirements can become
opportunities, provided necessary institutional infrastructure is
established. If Pakistani products can earn name, then such barriers
shall not affect exports.
Initially, the preparatory costs of compliance with the sanitary and
phytosanitary (SPS) measures will be high, but once such agencies
were established, the future benefits would be much higher.
Coordination among the Export Promotion Bureau, kinnoo exporters,
agricultural research and extension is urgently needed. Certifying
agencies should be established on priority basis before the coming
season to introduce and enhance citrus exports to the EU, the US,
Japan and Australia.
There is a growing recognition that the SPS agreement can promote
agriculture trade. Many countries have done exercises on estimating the
cost of compliance with these measures.
According to Smeda, there are bright prospects for Pakistan to export
citrus to these countries. Still, a lot needs to be done for establishing the
necessary institutional infrastructure like keeping production record,
quality testing laboratories, brand name, packing-material providing
industries, general hygiene of markets and processing factors, quality
certificate issuing authorities, etc.
Under the WTO, the signatory countries cannot impose import duties but
can raise non-tariff barriers based on quality and hygiene. Such issues
are widespread in case of fresh horticultural products.
One example is a ban on mango imports from Pakistan imposed by the
US and Japan due to the incidence of fruit fly. Many Western and Asian
countries are raising such barriers. Pakistan needs to impose these
standards on its exports voluntarily.
It is suggested that the market committees should be made strictly to
observe hygiene. Export certificate issuing institutions should keep an
eye on hygienic conditions at all stages of export.
Courtesy: The DAWN