Lady luck is not being too kind to Pakistan, especially with respect to the EUs trade concessions for the countrys textile industry.
The EU had proposed to waive duties temporarily for 3 years from 2011-13 on 75 export items from Pakistan to the EU in order to assist the flood-ravaged economy.
Lately, the concessionary measures of the European bloc have been put at bay by the World Trade Organisation (WTO), which delayed a vote on whether to allow the EU to go ahead with the promised agenda.
Some non-EU countries have been opposing the special consideration being given to Pakistan as a protectionist stance for their own exports to the EU, prominent amongst these being Pakistans South Asian counterparts - India and Bangladesh. The opposition had managed to strip off tariff cuts for bed linen exports, Pakistans main export product, and thus rendered the concessions a tough calling for Pakistan.
Germany, an EU country, has pledged support to put Pakistans case forward in the preceding WTO and EU meetings, but yet, it is not as simple. "WTO decisions are not that easy to make and they take time. This decision is not a very simple one," said a representative of the Consulate General of the Federal Republic of Germany.
Indeed, it would be in Pakistans interest to stretch its legs as far as diplomatic pressure is concerned, and argue that since the country is also siding with the west and participating exuberantly in the war against terror, it deserves to get the preferential treatment from the EU bloc.
EU has granted concessions to Andean countries (a trade bloc comprising the South American countries of Bolivia, Colombia, Ecuador and Peru) linked to combating drug trade. Pakistan can press for access to the said concessions on similar grounds since it is a key player in the war against terror.
However, this is a single, prominent constructive argument that Pakistan can put forth. Other than this, the country lacks tremendously in the image department. "Pakistan should work toward improving its image internationally, even go to the extent of launching a proper campaign to improve its image. This will be quite helpful in warding off and tackling pressure from the opposition," the Consulate General of the Federal Republic of Germany told BR Research.
At a recent seminar held at the Management Excellence Centre, Institute of Business Management (IoBM), Karachi, Zafar Mehmood, Secretary Commerce, observed that business visas to the EU, as well as those to Pakistan have been on the decline, which leads to a "disconnect between the buyer and supplier".
This highlights the need to brace up and work towards putting the countrys best foot forward in order to gain diplomatic clout. The incessant bombings, fiscal problems, and inconsistency in policy implementation have been rather unconstructive for Pakistan.
The two-month delay might not be enough to set the house in order, but perhaps it gives some time to Pakistan to prepare well for facing the WTO in the next meeting.