EU concessions

n fact, President Asif Ali Zardari in particular has been emphasising, establishing trade ties with the idea of promoting trade and taking it to new heights. The objective has always been attaining economic stability by decreasing dependence on foreign lenders whose harsh conditionalities usually impinge on the sovereignty of dependent or aid-seeking states.
People within the intelligentsia view the EU concessions as not only an economic success on the part of the present Islamabad administration but also as a triumph over global skepticism directed against Pakistan with venom. It is also akin to bequeathing a legacy of stability, sovereignty and self-esteem to the governments of the future who would certainly benefit from this legacy.
But that's not all. There are more benefits that are going to accrue out of these EU concessions as within the next three years, Pakistan would be earning an additional amount of Euro 900 million on textile exports following approval, by the WTO Council for Trade in Goods, of EU's request. In fact, EU has requested a temporary waiver of tariffs on imports from Pakistan. The agreed waiver will allow Brussels to temporarily discriminate in favour of Islamabad, in an effort to help Pakistan's economy to recover. Although this recovery has been shown as recovery from the negative fallout of July 2010's devastating floods, this phenomenon is going to have effect on Pakistan's overall economy.
In order to understand this situation, one will have to go back into Pakistan-EU economic ties' history. As a matter of fact, EU is Pakistan's largest trading partner, receiving nearly 30 percent of Pakistan's exports - worth nearly €3 billion. Pakistan's trade with EU is primarily composed of textiles - 70 percent of exports to the EU - followed by leather products, which make up 13 percent of exports. Above all, the EU package aims at supporting the objective of a harmonious economic growth in Pakistan in respect of the WTO obligations.
EU's High Representative Catherine Ashton has also welcomed the adoption of the EU-Pakistan five-year engagement plan to boost bilateral ties. "This plan aims to build a strong relationship by forging a partnership for peace and development rooted in shared values, principles and commitments and will contribute to fostering peace and stability in the region. This plan is also an expression of the EU's determination to support Pakistan's institutions and civil society. The EU will continue to work closely with Pakistan as it seeks to address its economic and developmental challenges and provide security for its people."
This is in itself very encouraging for Pakistan's growth. The government of Pakistan deserves commendation on this count especially for earning goodwill to this degree in the international fraternity. Success in the EU can also pave the way for more and yet greater diplomatic and economic successes at a broader level. A strategic EU-Pakistan dialogue based on this engagement plan, is already on the anvil and would come into effect during the EU High Representative's upcoming visit to Pakistan.