That Pakistan must seek preferential treatment for its exports to the EU market was underlined separately on Thursday by President General Pervez Musharraf as well as the Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea).
Both called for the same line of action to boost the country's exports to the EU. While the President urged the Ministries of Foreign Affairs and Commerce to have "greater interaction with the EU and the US and ask them to reduce tariffs on Pakistani goods so that exports witness a quantum leap in the near future," Prgmea put the issue in perspective by asking the government to try and secure more favourable terms of trade in EU's new General System of Preferences (GSP).
In a letter that it has written to both the President and the Prime Minister, Prgmea points out that the concessionary treatment the EU has been giving Pakistani garment exports is going to end on December 31 of the current year. After that date, foreign buyers of Pakistani garments will be required to pay 12 percent extra by way of tariff and hence are almost certain to be looking for other cheaper exports like those of India and China.
It has asked the government to try and get an extension in the current GSP scheme for another year and also to ensure access to Pakistani exporter to the new GSP plus.
As it is, rules and regulations governing EU trade do provide for special market access and tariff concessions to poor nations on the basis of certain actions and policies that they might undertake.
It may be recalled that not long ago, Pakistan's former Commerce Minister, Razak Dawood, had made a creditable effort to use the provision to secure preferential treatment for this country's value-added textile exports.
He had asked for and obtained tariff concessions on the grounds that the country was devoting considerable resources to its fight against the drug menace. The move, nonetheless, fell through later due to a mere technicality, when India challenged it in WTO and won the case arguing that the concession had to be given under a general criterion, applicable to all, rather than to make it country-specific by stating its name.
The explanation was that if the country so named failed to meet the criterion after, say a couple of years, it would no longer deserve to be accorded preferential treatment.
At present, Pakistan has a strong case to apply for special treatment under the new GSP plus scheme on the basis of its fight against terrorism, which, needless to say, is a major cause of concern to the Western nations as well. That entails an economic cost.
More to the point, it is a well-recognised fact that unemployment, poverty and terrorism go hand in hand. Pakistan, currently in the grip of a serious terrorism problem, therefore needs a big helping hand to overcome its economic difficulties.
As things stand, its textile and textiles-related industries are the largest employers. If they are treated at par with countries such as India and China, they may soon be reduced to exporting only cotton and yarn. Which will be in nobody's interest.
It can only lead to a further shrinking of an already limited job market in Pakistan, driving many to despondency and vulnerability to recruitment campaigns of certain terrorist organisations. Economic security, in the present context, cannot be separated from national security.
Commerce Minister Humayun Akhtar and officials of his ministry did try to get the EU bureaucracy to concede that there is a need for preferential treatment to be accorded to countries battling terrorism, but the news emanating from Brussels suggests that the EU commission in its recommendations to governments of its member states does not support such preferential treatment.
The EU's trade officials are reported to have sent their recommendations to the member countries with regard to the new GSP plus. This, therefore, is the time for Islamabad to lobby these governments, in particular Europe's big three, namely France, Germany and Britain, so that they recognise the need to grant Pakistani exports preferential treatment while finalising the GSP.
Help must also be sought from the US to use its influence with the EU to remove tariff barriers for Pakistani exports on grounds of its ongoing battle against terrorism.
The issue must be taken up at the highest levels of government and, of course, with a sense of urgency before the EU gives final touches to its new GSP.
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