Brussels, 07/12/2010 (Agence Europe) - On 30 November, the EU submitted a request to the WTO for a derogation for the trade preferences it intends to grant Pakistan, the economy of which was devastated by unprecedented flooding in August. While support has been received from a large number of countries (United States, China, Saudi Arabia, Kuwait, Oman, Qatar, United Arab Emirates, Chile, Turkey, Uganda, Colombia, Norway, Mauritius - on behalf of the ACP countries - and Zambia), India, Vietnam, Bangladesh and Peru have asked for consultations on the multilateral ramifications of the EU preferences.
The draft regulation tabled by the European Commission at the start of October proposes unilateral suspension of EU customs duties on key Pakistani exports for the next three years. The preferences proposed refer to 75 tariff lines (65 concern textiles, three shoes, six leather and one ethanol, for which it is proposed that an annual quota tariff of 100,000 tonnes be set). The initiative is expected to see Pakistani exports to the EU rise by something of the order of €100 million per year, compared with 2009. (E.H./transl.rt)