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Tuesday, April 26, 2011

Pakistan asks India drop opposition to European Union giving duty free access to textiles

New Delhi : Ahead of India, Pakistan Commerce Secretaries’ meeting in Islamabad on April 27-28, Islamabad has asked New Delhi to drop its opposition to the European Union giving duty-free access to textiles in its proposed flood relief package to Pakistan, Indian Express newspaper reportedon Tuesday.

Commerce Secretary Rahul Khullar will meet his Pakistani counterpart Zafar Mehmood. Quoting sources, it said Pakistan asked India to consider the matter in a positive manner as it is expected to raise the issue during secretary-level talks in Islamabad.

India, Bangladesh, Peru & Vietnam have blocked EU’s plans of giving duty-free access to 75 products, 64 of them textiles, at World Trade Organization. The concessions to be given for three years are partof EU package of 900 million Euros to Pakistan to help economy deal with destruction caused by last year’s devastating floods. EU needs a waiver from these countries at WTO to pass on concessions to Pakistan, as any such concession would be against rules of the trade agreement that says all members have to be treated alike.

India has not yet taken a final decision on this issue. While Pakistan raised the issue at bilateral level, EU has also been in conversation with New Delhi so that preferential trade package can be implemented. New Delhi has so far maintained EU should give direct humanitarian aid — in cash or in kind — and not give trade concessions which do not affect people of Pakistan. Indian sources said EU proposal gives money to Pakistani textile exporters and not to people in Pakistan. A crucial meeting of WTO’s general council on the subject is expected to take place in first week of May, where the countries are supposed to enunciate their positions. Meanwhile, India & Pakistan Commerce Secretaries will also discuss issue of liberalization of visa regime for businessmen and easing of tariff and non-tariff barriers between two countries. PPI