EU trade package: WTO council to take up Pakistan's case in November

The European Union (EU) will place Pakistan specific preferential trade package before the WTO Council of Trade and Goods (CTG) once again in November 2011, official sources told Business Recorder. "We are continuing silent diplomacy with all the concerned countries on this issue and it was the top item of the agenda during a meeting between Minister for State for Foreign Affairs, Hina Rabbani Khar and the Indian Foreign Secretary," the sources added.
India and Bangladesh are two major opponents of the EU's proposed Pakistan specific trade package with the objective of providing assistance for the flood victims. Both the countries blocked the package, which was scheduled for implementation from January 1, 2011. The EU has proposed unilateral duty-free concessions on 75 Pakistan export items - from cotton sheets to clothing and ethanol.
However, in March 2011, Indian Minister for Commerce and Industry Anand Sharma stated that if the EU intended to provide financial support to Pakistan's flood victims it should do so directly. After obtaining approval from the 27-member parliament, the EU had submitted its trade package to the WTO, which was blocked by Bangladesh and India. Sri Lanka extended its support for the package after Secretary Commerce Zafar Mahmood visited Colombo and requested that the concerned Sri Lankan authorities not to challenge the trade concessions approved by the EU as this package would not have harmed Sri Lankan textile export related interests in European countries.
India maintains that it has impressed upon the EU to provide direct, immediate and effective assistance to the flood affected people of Pakistan. A trade related measure, which is unprecedented in the WTO history and additionally does not ensure that the assistance directly reaches the intended beneficiaries may perhaps not be the best way to reach the objective, India argues. An analyst argued that opposition by India to the EU package would alienate Pakistani exporters with whom New Delhi wants to do business.
When contacted, Secretary Commerce, Zafar Mahmood confirmed that the EU's Pakistan specific package will be reconsidered in November. He added that efforts are under way to convince those countries opposed to the package that it would in no way negatively impact on their exports to EU.