The Japanese government has warned that it will take Pakistan to the World Trade Organisation (WTO) over pressure on three Japanese car manufacturers to export their vehicles.

Honda, Toyota, and Suzuki face a requirement to export a percentage of their cars annually under Pakistan’s Auto Industry Development and Export Policy. This has prompted a formal complaint from Japan, raising concerns at various levels, including the WTO, reported a national daily.

The matter is currently under discussion, but if unresolved, it could escalate to WTO dispute settlement procedures. Meanwhile, Pakistani authorities argue that their actions are WTO-compliant.

Meanwhile, the auto sector suggests measures to enhance competitiveness, including seeking zero-rated Free Trade Agreements for auto parts in specific regions.

The Japanese Ambassador to Pakistan has engaged with officials in Islamabad, including the Commerce Minister and the Minister for Industries and Production, to address concerns regarding import quotas and
export obligations.

Source: Pro Pakistani