摘要：This paper examines and critiques the worldwide mushrooming of
preferential trading arrangements and traces its implications for Pakistan.
It points out that this development is fundamentally contrary to the
principle of most-favored-nation (MFN) treatment, which was the
cornerstone of the post-war multilateral trading system as embodied in the
General Agreement on Tariffs and Trade (GATT) and by the World Trade
Organization (WTO). The causes of the rise in bilateral and regional
trading arrangements are discussed and it is shown that they pose a real
threat to many relatively small economies, including Pakistan. The paper
discusses the various preferential trade agreements Pakistan has already
signed. It notes that, with the exception of its trade agreement with China,
Pakistan has not succeeded in concluding preferential trading
arrangements with any of the strategically and systemically more
important countries, viz., the US, European Union, and Gulf Cooperation
Council (GCC). The South Asia Free Trade Area (SAFTA) could potentially
be of considerable importance for Pakistan’s long-term economic growth,
but this potential might not be realized if India and Pakistan fail to
overcome their mutual differences. Finally, the paper explores steps that
might be taken to promote Pakistan’s economic interests in its bilateral
relations. It points out that, apart from achieving a measure of
macroeconomic stability, Pakistan needs to improve its international
competitiveness through productivity improvements and be more strategic
in its trading relations. Its market access to leading industrial countries
that are entering free trade agreements (FTAs) with Pakistan’s competitors
is a real threat and remedial actions are required.
