Pakistan not off the hook in concession seeking: EU gives fresh assurance

07 Dec, 2010

Pakistan is not off the hook in concession-seeking efforts as European Union has formally conveyed to Islamabad that its case to get waiver for a concessional tariff regime from its member countries will again be presented to the World Trade Organisation (WTO) in March 2011.
The officials in Islamabad seem little bit consoled and relieved after getting the new assurance from EU for keeping their hopes alive for getting some preferential treatment in the near future to help Pakistani exporters get more share and subsequently supplement the government's efforts to enhance export to that market.
Sources said the officials of the Commerce Ministry and the Foreign Office have shared the new EU assurance and they are likely to present Pakistan's case to the WTO next time for a waiver with even better preparations. The EU is also specific for next time for Pakistan as it hinted in its communiqué at working on hostile countries well before the event so that they do not oppose Pakistan's case at WTO forum.
The EU had presented Pakistan's case to WTO on November 29, for one-time waiver for concessional treatment for 75 key exportable items to the EU market on the ground that in post July 2010 flood the country deserves special concessions to steer its weakening economy out of current difficult phase, but it did not go through due to India's strong opposition. This development dashed Pakistan's hope to get special concessional for its some key sectors such as textile and value added which contribute to is exports to the EU. The officials here in Islamabad had calculated benefit in monetary terms to Pakistan of one-time waiver for concessional regime for 75 items roughly $900 million. This could also help Pakistan take its case for similar concessions from other key trade partners like Japan and USA.
Jalil Abbas, Pakistan's ambassador in Geneva, reported to have had conveyed to the officials in Islamabad much before the WTO meeting that India could oppose Pakistan's move to get concessional treatment from the EU member countries. The conscious ambassador had suggested to the decision-makers in Islamabad to try to convince India through some non-traditional channel that since it was going to sign free trade agreement it should not oppose Pakistan's case for one-time waiver at WTO forum, but the suggestion did not work at home.

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