Brussels, 16/02/2012 (Agence Europe) - The WTO General Council unanimously approved, on Wednesday 15 February, the waiver requested by the EU in order to allow it to grant trade preferences to Pakistan over a period of two years. Pakistan's economy was devastated by floods in August 2010.
The lifting of the reservations by India, Bangladesh, Argentina, Brazil, Indonesia, Morocco and Peru meant that the WTO trade committee was able, on 1 February, to unanimously agree to the EU's waiver request. The EU had submitted a revised version in November 2011 which took cognisance of the systemic concerns expressed by several member countries.
The draft regulation proposed in 2010 by the European Commission proposes unilateral suspension for two years of EU customs duties on key Pakistani exports. A list of 75 dutiable product lines of importance for Pakistan's exports has been established (65 for textiles, three for footwear, six for leather goods and one for ethanol, for which an annual tariff quota of 100,000 tonnes has been set), affecting products representing 27% of total exports from Pakistan to the EU. Through this measure, it is hoped to increase Pakistani exports to the EU by €100 million per year, compared with 2009.
The package will have to be endorsed by the European Parliament before being implemented retrospectively from 1 January 2012 to 31 December 2013. (EH/transl.jl)