Brussels, 13/09/2012 (Agence Europe) - Although it is giving its go-ahead to two years of preferential market access to Pakistan in order to help the economic recovery of the regions devastated by floods in August 2010, the European Parliament is nonetheless introducing safeguards into the implementing regulation.
Pakistan will thus enjoy temporary preferential access (until end 2013) to the Community market to promote the economic recovery of its regions devastated by the August 2010 floods. On Thursday 13 September, the European Parliament adopted by 342 votes to 97 and 165 abstentions the draft regulation put forward in October 2010 by the Commission providing for the unilateral suspension, for two years, of EU customs duties on key exports from Pakistan. EU preferential (duty-free) market access will be granted to 75 types of goods from Pakistan: 65 for textiles, 3 for footwear, 6 for leather and one for ethanol, for which an annual tariff quota of 100,000 tonnes is foreseen.
Parliament has nonetheless introduced safeguard clauses into the regulation in order to protect European industry and jobs in the sectors concerned, which are sensitive for some member states, against surges in cheap imports. The Commission will be able to bring tariff duties back in if imports into the EU of the products concerned increase by 25% or more.
Parliament has also inserted a clause allowing trade preferences to be withdrawn if Pakistan imposes restrictions on exports of raw materials used for the production of goods covered by the regulation, such as animal hides. Also, a suspension clause links trade concessions granted to Pakistan to its results regarding human rights and labour rights, as well as gender equality and the fight against terrorism.
A significant number of MEPs - from the S&D group - abstained during the vote as they felt that the EU's trade policy should not be used as a humanitarian aid instrument.
The EU had to obtain a special “waiver” from the WTO in order to grant preferences to Pakistan. That waiver had to have the unanimous approval of its members at the WTO General Council on 15 February. The waiver was blocked for a long while by India and Bangladesh, who were concerned about the possible impact that this could have on their own markets. (EH/transl.jl)