Q1.

As a key policy official in the government, you have to advise your permanent secretary on the approach to NAMA negotiations. As a part of this exercise, you have to suggest which of the products shown in table 2 should be excluded from NAMA cuts. You are also required to give economic justification for your recommendations. Which are the 6 products/ product groups of high priority for excluding them from NAMA cuts? As per the country profile, the country looks to be CHINA Products of high priority for exclusion from NAMA Cuts - Justification 1. Cotton Yarn Even now, as majority of the employment is from Agriculture, excluding Cotton Yarn from NAMA cut will help the domestic farmers.

2. Cotton Fabric It is a major employment generator and it is noted that t he apparel sector is facing
stiff import competition from low cost producers Large segments of this industry will either be wiped if the cuts are allowed. The impact will be drastic as the cut is severe from 15% existing duty now to 8.92% (new bound rate)

3. Cotton Shirts -

It is a major employment generator and it is noted that the apparel sector is facing

stiff import competition from low cost producers Large segments of this industry will either be wiped if the cuts are allowed The impact will be drastic as the cut is severe from 25% existing duty now to 11.70% (new bound rate) It is apprehended that if tariffs are lowered, large segments of this industry will either be wiped out or the industry will have to undergo restructuring and modernisation. The latter is likely to result in severe employment losses.

4. Cotton Skirts It is a major employment generator and it is noted that the apparel sector is facing stiff import competition from low cost producers Large segments of this industry will either be wiped if the cuts are allowed. The impact will be drastic as the cut is severe from 25% existing duty now to 11.70% new bound rate. It is apprehended that if tariffs are lowered, large segments of this industry will either be wiped out or the industry will have to undergo restructuring and modernisation. The latter is likely to result in severe employment losses.

5. Automobiles