News
Sunday, March 06, 2011
US considers unilateral trade preferences to help Pakistan
* Trade Policy Agenda for 2011 reveals US will provide economic opportunities through trade for countries ravaged by disaster or violence
Staff Report
ISLAMABAD: The United States administration has expressed its willingness to consider a unilateral trade preferences programme to help Pakistan overcome economic difficulties. This was revealed in the US president’s 2011 Trade Policy Agenda, which provides a roadmap for US trade policy initiatives for the ongoing year. The policy document provides a resolve by the US government to continue supporting economic opportunities through trade for those countries ravaged by disaster or violence. Two countries specified in the report for such efforts are: Haiti and Pakistan.
The document’s paragraph concerning Pakistan reads: “This year, we will also help our Pakistani partners recover from last year’s devastating floods by seeking to build economic prosperity through trade. To this end, we will work with Congress to ensure renewal of GSP and to identify other mechanisms, including appropriate preference policies that can provide Pakistan the opportunities necessary to overcome challenges like the 2010 floods.”
Commerce Minister, Makhdoom Amin Fahim, had written a letter to US Trade Representative (USTR) Ron Kirk on September 2, 2010, requesting support for Pakistan.
During a recent visit of a US diplomat, David Lipton, to the country, the Commerce Ministry repeated its request for trade concessions while highlighting its earlier request made by the commerce minister to the USTR.
In August 2010, Pakistan witnessed worst floods and requested the international community for immediate relief and assistance.
A Pakistan-specific trade agenda for 2011 announced by the US government is the result of comprehensive efforts of the government and Commerce Ministry, which would remain engaged with the USTR to develop appropriate measures to realise this policy objective.
Waivers: The CTG approved several requests for waivers related to implementation of the Harmonised Tariff System and renegotiation of tariff schedules. The CTG also considered, but did not act upon, a request of the European Union (EU) for a waiver on additional autonomous preferences granted by it (EU) to Pakistan. The issue will revert to the CTG this year, following consultations between the EU and those members who have expressed concerns.
GSP: Although GSP benefits for textile and apparel are limited, certain handmade products are eligible for GSP treatment. The US has entered into agreements, providing for certification and GSP eligibility of certain handmade, folkloric products, with 16 beneficiary countries: Afghanistan, Argentina, Botswana, Cambodia, Colombia, Egypt, Jordan, Mongolia, Nepal, Pakistan, Paraguay, Thailand, Timor-Leste, Tunisia, Turkey, and Uruguay. These agreements provide a basis for extending duty-free treatment to exports produced primarily by women and the poor of the beneficiary countries.
The 2010 data on exports to the US indicates that many beneficiaries have made progress in diversifying and expanding their exports to it (US) under the GSP programme, despite the challenging economic conditions. For instance, Pakistan exported at least 321 different products (at an eight-digit tariff level) to the US under the GSP.
Contributing to regional stability: In support of America’s national security objectives in Afghanistan, Pakistan and Iraq in 2010, USTR Kirk strengthened his engagement with them as a part of a broader effort to boost trade, employment, and sustainable development.
The USTR hosted a Trade and Investment Framework Agreement (TIFA) meeting with Afghanistan on November 8, 2010, which included a session with the private sector and the USTR advisory committee members. The USTR also hosted a TIFA meeting with Pakistan on April 23, 2010.
Working with other US agencies, the USTR participated in trilateral and other high-level meetings with officials from Afghanistan, Iraq and Pakistan. Key highlights from 2010 included: The USTR and other agencies continued to seek passage of trade preference legislation, including the Reconstruction Opportunity Zone (ROZ) legislation, to provide duty-free benefits for certain products exported to the US from Afghanistan and critical border areas of Pakistan. The USTR also led discussions on how Afghanistan, Pakistan and Iraq could increase use of existing trade benefits under the US Generalised System of Preferences (GSP) programme.
The USTR supported negotiations between Afghanistan and Pakistan on a modern transit trade agreement that would boost regional trade and help create economic opportunities in both the countries.
Courtesy www.dailytimes.com.pk