Policies of World Trade Organization: Threats to Tribal Areas' (FATA) Trade with Afghanistan

Abstract

This study argues that policies and regulations of World Trade Organisation (WTO) will adversely affect Tribal Areas’ (Federally Administered Tribal Areas) trade with Afghanistan. WTO was established in 1995, following the Uruguay Round of the General Agreement on Trade and Tariff (GATT). It formulates general rules that apply to all members and specific commitments made by individual governments, in return, the member states adjust their economic policies to its regulations. Pakistan is already a member of WTO and Afghanistan is sitting as an observer. It is established with the help of theoretical, analytical and empirical data that WTO’s policies and regulations will adversely affect Pakistan, Afghanistan, impoverished FATA and adjacent five Afghan border provinces. Chapter 1 deals with WTO’s inception, history, organisational structure and working mechanism. It charts WTO policies and its adverse impact on the developing countries. It argues that free trade and open market policies of WTO are biased and unsympathetic towards developing and least developed states, hence, suggests reforms. The second chapter attempts to assess social, political and economic conditions of FATA, Pakistan and adjacent five Afghan border provinces, a prelude to evaluating the impact of WTO policies. The third chapter discusses formal, transit and informal trade between Afghanistan and Pakistan through FATA, the second largest source of livelihood in Pak-Afghan border areas the following agriculture. The field data indicates that margin of profit earned by inhabitants of border areas involved in formal/informal trade and transit trade may disappear as a consequence of implementing WTO regulations, hence, threaten livelihood. The fourth chapter briefly describes the impact of WTO policies on Pakistan’s and Afghan agriculture, manufacturing, services and trade. It argues that both Pakistan’s and Afghan traditional system of agriculture, infant industrial base, unskilled and poorly organised service sector, trade and commerce, in primary goods and commodities, seem not ready for strenuous policies of WTO. The fifth chapter illustrates WTO’s policies adversely affecting impoverished tribes residing FATA, Pakistan and adjacent five Afghan border provinces. It forewarns regarding imminent, colossal though perceived threats to the livelihood of inhabitants of FATA and adjoining areas of Afghanistan. Several alternatives are discussed and suggested to policymakers concerning FATA and adjacent Afghan border provinces to mitigate challenges faced by WTO’s policies. Alternative options are also explored for FATA and adjacent five Afghan border provinces to compete and endure WTO’s policies and regulations.