News
Friday, October 08, 2010
Europe offers trade-tied aid to Pakistan, suspends import duties* Europe proposes to lift duties on 75 of Pakistan’s imports
* Unilateral suspension of duties available for next three years
* Offer could be applied as of Jan 1 next year
BRUSSELS: Europe offered a major trade boost to Pakistan on Thursday, proposing to lift duties on 75 of its imports as part of an aid-linked package designed to help recovery from the floods.
The unilateral suspension of duties, available for the next three years, concerns goods accounting for 27 percent of Pakistan’s current imports to the EU.
Lifting duties on the products, which include textiles, would result in an estimated increase of EU imports from Pakistan to the tune of around 100 million euros, the EU said.
European trade commissioner Karel De Gucht said the proposal “will offer a real boost to Pakistan’s economic recovery while at the same time take into account sensitivities of EU industries”, which are fearful of preferential treatment for Pakistan’s cheaper textiles.
De Gucht said he hoped the offer could be applied as of January 1 next year.
The EU said the products represented only a small portion of such imported goods.Imports from Pakistan are currently worth around 3.3 billion euros each year, 900 million euros of which comes from these 75 lines.
The package, suggested by Britain, will be presented for approval to member states and the European parliament in the next few days.
However, it will only come into effect if World Trade Organisation partners grant a “waiver,” a senior official admitted.
The package was “exclusively designed for Pakistan; it is not available to other countries — but all WTO members must back itt”, he said, requesting anonymity.
He said India had already been sounded out amongst other rivals expressing sensitivities but that “serious talks” would now begin to make sure it does not lodge a complaint with the WTO.
He scotched suggestions from Italy that up to 40,000 jobs could be at risk in Europe under the scheme. Sixty-five textile product lines — but not bed-linen, with four out oof 10 EU imports in that category already coming from Pakistan — head the list, which also includes six lines of leather goods and three of footwear. The final item is ethanol, for which a threshold of 100,000 tonnes per year is applied, above which tariffs become payable again. afp
Courtesy www.dailytimes.com.pk