Strasbourg, 28/09/2011 (Agence Europe) - It is possible that the EU will receive the go-ahead from the 153 WTO member countries for the waiver it requested for granting trade preferences to Pakistan, whose economy was severely damaged by the floods in August 2010. Asked about this dossier at the European Parliament on 27 September in Strasbourg, Commissioner for Trade Karel De Gucht explained that “the package that we proposed is currently blocked at the WTO. India, however, will be making a proposal aimed at withdrawing its objections (…) We have obtained information according to which India would be prepared to lift its veto.” Due to fears linked to the economic impact of the EU's trade preferences for Pakistan, certain WTO countries, particularly India, are reluctant to give their approval to the European request. Community sources have indicated that India's approval would to a large extent depend on the results from the meeting between Indian and Pakistani trade ministers on 27 September in New-Delhi.
The draft regulation proposed in October 2010 by the Commission sets out a unilateral suspension for the next three years of EU customs duties on key exports from Pakistan. Preferences target 75 tariff lines on Pakistani products (65 on textiles, three on footwear, six on leather and one on ethanol, for which an annual quota of 100,000 tonnes is planned). This action is expected to help increase Pakistani exports to the EU by €100 million a year compared to 2009.
The package will also have to obtain the Parliament's approval before implementation in January 2012. (EH/transl.fl)