Après Mumbai: EU to restart process for trade concessions
EU said it would relaunch bid to grant time limited trade concessions to Pakistan.
ISLAMABAD:
Following what appears to be a withdrawal of Indian objections, the European Union on Wednesday announced that it would re-launch its bid – both at the World Trade Organisation and within the European Parliament – to grant time-limited trade concessions to Pakistan.
The EU will now press ahead with the internal legislative process in the European Parliament as well as the European Council (the EU’s highest decision-making body), said Ambassador Lars-Gunnar Wigemark, the head of the EU delegation to Pakistan.
In a statement after India announced that it would withdraw its opposition, Wigemark said that the issue would be taken up in next WTO Council for Trade in Goods meeting, scheduled for November 7. However, a formal decision would be possible by the next WTO General Council at the beginning of December. “If all goes well, the preferences could be in place by early 2012,” said Wigemark.
“The European Union welcomes the outcome of the bilateral trade talks between India and Pakistan. It is very positive that India has decided to withdraw the objections to the WTO waiver sought by the EU for granting duty free access for certain goods from Pakistan to the EU market,” the statement reads.
The European Union had originally sought to reduce tariffs on 75 goods for a period of three years, including 67 on which it would reduce to zero. Pakistan currently exports approximately $1.2 billion worth of those goods, a number that the EU expects to increase by about $136 million, or 11.1%, as a result of those concessions.
The EU expects about $108.8 million less in tariff revenues as a result of the trade deal.
The EU had promised the concessions as a means of helping Pakistan in the aftermath of the devastating 2010 summer floods. However, it was unable to move forward with the concessions package largely due to objections raised by India at the WTO, which must approve any such concessions.
Published in The Express Tribune, September 29th, 2011.
Following what appears to be a withdrawal of Indian objections, the European Union on Wednesday announced that it would re-launch its bid – both at the World Trade Organisation and within the European Parliament – to grant time-limited trade concessions to Pakistan.
The EU will now press ahead with the internal legislative process in the European Parliament as well as the European Council (the EU’s highest decision-making body), said Ambassador Lars-Gunnar Wigemark, the head of the EU delegation to Pakistan.
In a statement after India announced that it would withdraw its opposition, Wigemark said that the issue would be taken up in next WTO Council for Trade in Goods meeting, scheduled for November 7. However, a formal decision would be possible by the next WTO General Council at the beginning of December. “If all goes well, the preferences could be in place by early 2012,” said Wigemark.
“The European Union welcomes the outcome of the bilateral trade talks between India and Pakistan. It is very positive that India has decided to withdraw the objections to the WTO waiver sought by the EU for granting duty free access for certain goods from Pakistan to the EU market,” the statement reads.
The European Union had originally sought to reduce tariffs on 75 goods for a period of three years, including 67 on which it would reduce to zero. Pakistan currently exports approximately $1.2 billion worth of those goods, a number that the EU expects to increase by about $136 million, or 11.1%, as a result of those concessions.
The EU expects about $108.8 million less in tariff revenues as a result of the trade deal.
The EU had promised the concessions as a means of helping Pakistan in the aftermath of the devastating 2010 summer floods. However, it was unable to move forward with the concessions package largely due to objections raised by India at the WTO, which must approve any such concessions.
Published in The Express Tribune, September 29th, 2011.