EU waiver to propel textile exports, GSP plus to be next objective for Pakistan

Friday, 03 February 2012 00:38

ISLAMABAD: With World Trade Organization's (WTOs) approval on unilateral trade liberalization from the European Union, Pakistan now eyes on roping in Generalized System of Preference (GSP) Plus status to enhance its exports with reduced duty rates to the EU Markets, official sources said.

"Of course getting duty free access of 75 products to EU is a great achievement with healthy impact on the economy and the credit goes to Prime Minister who at diverse levels pleaded the case effectively," Director General, Trade Policy Safdar Sohail told APP.

He said after the unilateral trade liberalization, efforts are being made for getting GSP Plus to expand country's exports.

"Pakistan is persuading EU to change the criteria for GSP Plus so that it may be able to get benefit of this scheme and expand its exports", Safdar Sohail added.

He said that currently only those countries are given GSP plus, exports of which to EU are less than one percent of their total exports. However, he added, efforts are being made to persuade EU to increase this percentage as Pakistan's exports to EU are exceeding it.

He said that under the GSP plus, import duties on products would be reduced and there would also be no limitation on exports.

Safdar said that owing to anti-drug efforts, Pakistan had been enjoying GSP Plus from 2002 to 2005, however, after the Indian interference, the status was withdrawn by the EU.

Husnain Haider Deputy Secretary Ministry of Commerce who is dealing trade with EU said that the EU waiver would help boost exports and thereby help earn foreign exchange as well as develop textile industry.

He said that out of total 75 products that have been allowed duty free entry into EU markets, 64 are textile products.

Haider said that it was the diplomatic efforts of leadership who have been following "trade and not aid" policy.

He said that after the formal notification of World Trade Organization (WTO), the trade waiver would be discussed in EU parliament to give final approval for the practical implementation.

He said that a delegation of commerce ministry would be heading to Brussels next week to participate in Pak-EU Joint Commission where the exact time of implementation of the trade waiver could be known.

Commenting on the trade deal, Spokesman for the Ministry of Commerce Najeeb Khawar Awan said that Prime Minister and President have been making efforts for long time to get this waiver.

"Even in Mohali during Pakistan India Cricket Match, Prime Minister Syed Yusuf Raza Gillani had asked his Indian counterpart, Manmnohan Singh to help Pakistan get this trade concession in EU."

He said that it was through the diplomatic efforts India, Bangladesh and other opposing countries did not object the waiver at WTO.

Giving details about the tariff lines of all the 75 products, he said that Ethnol has one tariff line, home textile 8, non-value added textile 33, raw leather 2, textile garments 23, value added leather 4 while vegetable has one tariff line.

Commenting on the waiver,former Finance Minister Dr. Salman Shah welcomed the decision and hoped it would benefit Pakistan's exports specially textile exports to EU markets.

"Pakistan would get benefit of US $ 40 million this year", he remarked.

Pakistan Business Council (PBC) has also welcomed the move and expressed the hope it would help boost country's exports to the EU markets.