EU opens doors to 75 Pak imports

BRUSSELS: The European Union (EU) opened doors of its markets for Pakistan to earn up to 900 million euros annually, Geo News reported Thursday.

The EU offered to suspend duties on 75 Pakistani imports as part of an aid-linked package to help the country recover from its devastating floods.

The unilateral suspension of duties, available for the next three years, concerns imports accounting for 27 per cent of Pakistan’s current imports to the EU.

Lifting the duties on the products, which include textiles, would result in an estimated increase of EU imports from Pakistan to the tune of around 100 million euros, the EU said.

The European Union's executive Commission unveiled plans to grant limited trade concessions to Pakistan to help it recover from devastating floods and maintain political stability, EU officials said.

The proposal will see EU tariff cuts on a large number of products imported from Pakistan and should boost Pakistani imports to Europe by 100 million euros a year, the officials said -- less than the 300 million euros a year envisaged during a meeting of EU leaders last month.

Most of the trade concessions, which will be offered via a unilateral tariff waiver, will be on Pakistan's textile exports, but they will not include bed linen, for which there is local production in the EU.

They will include tariff cuts on Pakistani industrial goods, including ethanol, officials said.

The plan foresees the trade breaks staying in place for three years, provided they are approved by EU governments, the European Parliament and the members of the World Trade Organisation, who must agree to unilateral waivers.

Pakistan, reeling from floods that have displaced millions, has said it urgently needs greater access to EU markets to help stabilise its economy, and has warned Islamist militants could exploit economic crisis and social instability.

EU leaders last month agreed Pakistan should receive unilateral trade breaks and tasked the Commission with drafting a plan. Leaders also committed to giving Pakistan access to the EU's enhanced trade regime known as GSP+, by 2014, provided it meets criteria on good governance and human rights.

The scope of trade concessions had been uncertain because of competition concerns of European industry groups and fears of opposition by India and Bangladesh, which also compete with Pakistan for exports to Europe.