India won’t object to EU duty-free access to Pakistan's cotton exports

NEW DELHI: Ahead of Pakistan Commerce Minister Makhdoom Amin Fahim’s two-day visit to New Delhi, beginning September 28, New Delhi is learnt to have agreed to withdraw its objection to duty-free access by the European Union (EU) to Pakistan’s cotton exports.

Government sources told The Indian Express that the concession was likely to be conveyed formally by Commerce Minister Anand Sharma to his Pakistani counterpart, and would be one of the “big-ticket concessions” from the Indian side.

India, along with Bangladesh & Turkey, had raised objections at the World Trade Organisation (WTO) to EU’s proposal to allow duty-free access to 75 products from Pakistan.

It was an aid-linked package aimed at recovery of Pakistan’s cotton industry affected by the floods last year. This year again, the crop is affected by floods.

The access to European countries — which will benefit Pakistan’s cotton industry by about $200 million — won’t impact India’s cotton exporters in a “substantial manner”, government sources said, explaining India’s decision to lift its objections.

The package will now be placed for approval before member states and European Parliament in next few days and will only come into effect if WTO partners grant a waiver.

The list of 75 products includes dried mushrooms, truffles, cotton yarn, woven fabrics of cotton, overcoats of men and boys.

Sources said Pakistan Prime Minister Yusuf Raza Gilani raised this issue with Prime Minister Manmohan Singh in April this year when they met on sidelines of Indo-Pak World Cup cricket match in Mohali.

Copyright PPI (Pakistan Press International), 2011