Strasbourg, 10/05/2011 (Agence Europe) - On Tuesday 10 May, the European Parliament gave its support to the draft regulation proposed last October by the European Commission aimed at a three-year unilateral suspension of EU customs duties on key exports from Pakistan, with a view to supporting the economy of a country hit by unprecedented flooding last summer. The temporary preference scheme in Pakistan concerns 75 of its tariff lines on certain products (65 on textiles, 3 on footwear, 6 on leather and one on ethanol, for which an annual tariff quota of 100,000 tonnes is foreseen). The measure was aimed at allowing an increase in Pakistan's exports to the EU for a value of €100 million annually, compared to exports in 2009.
While the EU continues its discussions at the WTO on its requests for a waiver with member states who fear they will be affected by the temporary preferential trade regime granted to Pakistan, India especially, the Parliament set out its requirements on Tuesday 10 May with a view to negotiating with the Council for a first reading agreement during coming months. Given that the duration of the regulation's application has to be modified in relation to the delay in enforcement, the Parliament requests in an amendment to the report by Vital Moreira (S&D, Portugal) that the scheme should be limited to one year, with the possibility of extending it to three at most, after which the Commission would carry out an impact assessment. MEPs also call for annual duty-free quotas to be established for certain textile products. The Parliament hopes to introduce a safeguard clause into the regulation to deal with any major upheavals on the market. Finally, MEPs voted to introduce a clause into the regulation that would tie the preferential trade rules to Pakistan's human rights record. Parliament's amendment states that “if Pakistan adopts measures restricting human rights and workers' rights, gender equality or religious rights, or if it provides terrorist organisations of any kind with backing or support, the Commission shall immediately propose to repeal” the regulation. (E.H./transl.jl)