This is a good news. We need to make sure that US patents are safe in Pakistan. We also need to work closely with Korea, Japan, and China for joint export of motorcycles, cars, or buses to the US.
http://www.dailytimes.com.pk/default.asp?page=2006\07\08\story_8-7-2006_pg5_1
Duty-free exports to American markets: Country to continue to benefit from US GSP Programme
** Improved IPR enforcement in Pakistan clears the way
By Sajid Chaudhry*
ISLAMABAD: Due to the improved intellectual property rights (IPR) enforcement in Pakistan, the United States has announced that Pakistan will continue to enjoy the benefits of duty- free exports to US markets under the Generalized System of Preferences Program.
The Bush Administration had announced on June 30, 2006 the outcome of the 2005 Annual Review of the Generalized System of Preferences (GSP), a program created in 1974 under which 136 beneficiary developing countries currently export certain products duty-free to the United States. In the annual review, as required by regulations, the US administration evaluates the list of articles and countries eligible for duty-free treatment under the GSP using statutory criteria. The United States Trade Representative (USTR) office on July 7, 2006 has released further details on the results of the annual review in the US federal register.
The United States had closed in January 2006 an ongoing review of an industry-initiated petition seeking termination of Pakistan’s eligibility for the Generalized System of Preferences (GSP) program based on concerns over intellectual property rights. However, the United States had also announced that it would continue to monitor Pakistan’s efforts to achieve continued IPR protection and enforcement through the section 301 process and ongoing bilateral consultations.
The 2006 “Special 301” annual review initiated by US authorities in April 2006 reviewed in detail the adequacy and effectiveness of intellectual property rights in some 87 countries, including Pakistan. Before this review Pakistan was included in the Priority Watch list of US such countries as were not protecting properly the intellectual property rights. Under the 2006 Special 301 review, Pakistan’s ranking was improved and its name was removed from Priority Watch List and was placed on the Simple Watch List of US authorities. This was due to better enforcement of intellectual property rights in Pakistan.
During the 2005 review, the US administration had determined that certain imports from selected developing countries can compete effectively with imports that are subject to duties and, thus, should no longer be eligible for duty-free treatment under the GSP program. As a result, importers of those goods from affected countries would now pay duties at the normal tariff rates on those items.
The US administration also extended or preserved benefits by continuing GSP benefits that would otherwise expire and restored benefits on some goods. In 2005, $26.7 billion in products were imported duty-free from eligible beneficiary countries under the GSP program, an 18 percent increase over 2004. The majority of products imported from beneficiary countries are eligible for GSP benefits, with a significant exception being textile and apparel products.
As part of the annual review, the administration found that imports of certain products from specific developing countries now account for major shares of US imports of those products and are effectively competitive with imports from other countries, making them no longer eligible for duty-free status. Accordingly, the administration has acted to put those imports on a level playing field with other producers. This action also advances the US goal to administer the GSP program in the way Congress intended, by increasing the share of benefits for those countries that need it the most.
Earlier this year, the Bush Administration restored GSP eligibility to Liberia as a least- developed GSP beneficiary developing country and closed reviews of certain country practice petitions without removing GSP eligibility. These cases examined worker rights in Swaziland and intellectual property rights enforcement in Pakistan, Kazakhstan, and Brazil. Because of the steps taken by each country to address the pertinent concerns, the US administration determined to continue each country’s GSP eligibility.
The GSP program was created by the Trade Act of 1974. Under the program, 136 beneficiary developing countries currently export approximately 5,000 different products duty-free to the United States.