European Union''s (EU) trade package, meant for 2010 Pakistani flood affectees, is still in hot waters as some WTO member countries remain dissatisfied with the tariff lines and are in direct negotiations with the Union. Official sources told Business Recorder that the trade package offered by the 27-member block is still in the ''negotiation phase'' and nothing concrete has come out so far.
Last year, the EU had approved trade concessions to Pakistan in a move to help the country recover from July-August floods, which caused nearly $10 billion damage. The EU package, which had to be implemented from January 1, 2011, covered 75 Pakistani export items--from cotton sheets to clothing and ethanol--that would have been allowed to enter the EU free of duty.
"Now, the EU is negotiating Tariff Rated Quotas (TRQ) with countries which raised objections on the package," sources said. Brazil, Peru, Argentina, Bangladesh and Indonesia were among those which challenged the trade incentives offered by the EU to Pakistan. India has, however, withdrawn its objections in lieu of guaranteed liberal trade with Pakistan.
Commerce Ministry has requested the Ministry of Foreign Affairs, Trade Minister in Brussels and Pakistani Ambassador to the WTO to expedite their diplomatic efforts to bring both EU and the challenging countries to the table so that the issue may be resolved as early as possible.
According to sources, the countries, which claim that their exports to the EU would be affected, are seeking quotas for the tariff lines proposed in the trade package. Pakistan has already sent its comments to the EU on the objections raised by the countries and is pursing the matter in Brussels.
"We want early approval of trade package, either quota-free or quota restricted as early as possible," sources added. The trade package, sources said, is expected to be presented before the WTO in January 2012. According to the proposed TRQ, duty-free access to EU on a few tariff lines, including textile and footwear sub-sectors, would be allowed after calculating three years'' average quantity of exports with a 20 percent increase in the scheme.