News
Friday, September 10, 2010
EU struggles to agree trade breaks for Pakistan
BRUSSELS: Six weeks after Pakistan was ravaged by floods, the EU is still struggling to decide how to help beyond emergency aid, with a plan to offer lucrative trade concessions locked in dispute.
Last month, the EU’s foreign affairs chief, Catherine Ashton, urged member states to consider granting Pakistan more favourable trade terms as a means to support its economy and shore up the leadership of President Asif Ali Zardari in the struggle against terrorism. Britain and Germany — two of the EU’s most powerful countries – have strongly backed the proposal. But it is now bogged down in disagreement over how it could be implemented, the impact it would have on India and other trade partners and, critical for several EU members, the impact it would have on industries that compete with Pakistan exports. Ashton will again raise the issue with EU foreign ministers at a meeting in Brussels today (Friday), aiming to secure a general agreement that can be put to EU leaders at a September 16 summit.
Foreign Minister Shah Mehmood Qureshi said Pakistan urgently needed greater market access to help stabilise its economy and cautioned that terrorists would try to exploit economic crisis and social instability. “It is up to us, the international community and international partners, not to given them this opportunity,” he told Reuters. “Obviously the risk is linked to the response we are able to give. People are desperate, they are destitute, if we are not able to assist them, they will be frustrated and there will be social instability linked to that.” But ahead of Friday’s meeting it remains far from clear that an agreement can be reached, with trade, aid and foreign affairs diplomats at odds over the details, even if all are agreed that they would like to do something to help Pakistan. reuters
Courtesy www.dailytimes.com.pk