Pakistan-EU summit

The European Union and Pakistan have both gone through an institutional makeover since their first ever summit in Brussels a year ago. As in Pakistan, institutional changes in the EU are not fully consumed as yet. The six-monthly rotating country presidency is still in vogue. Yousaf Raza Gilani’s visit to Madrid en route was aimed not only at reviewing bilateral cooperation, but also to make a pitch for Spain’s unequivocal support to Pakistan’s critical agenda with the EU, topped by the sad situation created by Pakistan being denied a level playing field for access to the world‘s biggest market.

Seen retrospectively, while the 2009 summit was held in an upbeat mood between the leader of a democratic Pakistan and a sure-footed EU, both face serious new challenges requiring extraordinary qualities of leadership and resilience to deal with the “existential” threats being perceived at this juncture. The financial crisis in Greece has badly shaken the Euro zone and by implication of the EU itself. A report from Tehran says that Iran has decided to exchange billions of its reserves in euro into US dollars and gold. Copy-cat dumping of the common European currency would destabilise its position as an alternative to dollar. In Pakistan, the government is engaged in a tough battle with the Supreme Court, leading to a recrudescence of speculation about its survival. But then, statesmen possess a peculiar chemistry that enables them to keep a brave posture in face of adversity. In the spirit of “The King is dead, long live the King” the rulers continue to hold highly sensitive meetings and assuming commitments on behalf of their states in the knowledge that there is something more permanent than the individuals who may be in command at any given time.

And thus we can be sure that embattled as they are, the modest and affable Mr Rompuy, formerly Prime Minister of Belgium and currently the EU president, and equally gentle unassuming Mr Gilani easily moved from reiteration of the importance of Pakistan and the EU to each other, to the real issues needing mutual understanding and real action. The Europeans, though less militaristic in their approach to tackle the threat of terrorism, seek Pakistan’s firmness in dealing with terror outfits. Pakistan has become increasingly frustrated with the EU’s slow pace in assisting it to meet the financial cost of fighting terrorism and for rehabilitation of the IDPs. Equally frustrating is the EU’s inability in stemming the trend of losses in Pakistan’s share of the EU market while that of our competitors — India and Bangladesh — steadily goes up. The EU-India negotiation process for a free trade agreement has only heightened worries in Pakistan’s textile industry about further erosion in their market share in the EU which absorbs around one fourth of our total exports.

The Brussels meeting did not result in a clear and positive outcome to meet Pakistan’s pressing need for relief in terms of market access. The European Commission has promised to keep working on Pakistan’s request for being included in the Generalised System of Preferences (GSP+) regime which allows duty free access to the European common market. The EU concedes that Pakistan, though not among the least developed countries (LDCs) — like Bangladesh — does suffer from extraordinary economic vulnerability on account of a costly war against terrorists, massive internal displacements and recurring natural catastrophes. The EU has offered to increase economic aid while the complex GSP+ dossier is processed by the commission to find a solution acceptable to the 27 member states. Pakistan has no choice but to keep up the momentum of its diplomatic efforts in Brussels and the EU member states to achieve the goal of a level playing field in market access.

Published in the Express Tribune, June 7^th, 2010.