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Concessions to Pakistan: EU move gets mixed reaction at CIG meeting

Hyde

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Concessions to Pakistan: EU move gets mixed reaction at CIG meeting


RECORDER REPORT
KARACHI (December 02, 2010) : The first meeting of the World Trade Organisation (WTO) specially convened to review the European Union's (EU) application for providing further unilateral market access to Pakistan has observed mixed reaction from member countries, it is learnt.

Though majority of the ambassadors representing different countries supported the EU proposals, a few showed their concerns in the meeting of Council for Trade in Goods (CIG) of WTO, held on November 30. The meeting, having one-point agenda of providing further market access to Pakistan through a WTO waiver, was attended by 12 Ambassadors to support the waiver.

According to sources, the United States, China, Saudi Arabia, Kuwait on behalf of Gulf Co-operation Council (GCC), Uruguay, Mauritius (on behalf of all 79 ACP countries), Madagascar on behalf of African countries, Chile, Turkey, Uganda, Zambia on behalf of less developed countries (LDCs), Colombia, Hong Kong China, Chinese Taipei, Barbados and Norway supported the waiver.

However, Sri Lanka showed its concern and resentment against the EU, but stated that it would not oppose the request of waiver. Peru, Bangladesh, Vietnam and Brazil, on the other hand, supported in principle but sought consultations with the EU for further clarification and to address their individual concerns on certain products included in the package. But India opposed the draft proposals submitted by EU, indicating various concerns in the request for waiver.
 
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India will oppose pakistan for a Waiver claiming Pak has not granted India MFN.
 
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I think concession request was not approved by WTO and denied. Thats what BD newspaper reported.
 
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It does not matter if any country opposes...it takes one year and more to bring a case to the WTO so if EU wants to give the waiver then Pakistan can enjoy the benefits for more than one year atleast.
 
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Concessions to Pakistan: EU move gets mixed reaction at CIG meeting


RECORDER REPORT
KARACHI (December 02, 2010) : The first meeting of the World Trade Organisation (WTO) specially convened to review the European Union's (EU) application for providing further unilateral market access to Pakistan has observed mixed reaction from member countries, it is learnt.

Though majority of the ambassadors representing different countries supported the EU proposals, a few showed their concerns in the meeting of Council for Trade in Goods (CIG) of WTO, held on November 30. The meeting, having one-point agenda of providing further market access to Pakistan through a WTO waiver, was attended by 12 Ambassadors to support the waiver.

According to sources, the United States, China, Saudi Arabia, Kuwait on behalf of Gulf Co-operation Council (GCC), Uruguay, Mauritius (on behalf of all 79 ACP countries), Madagascar on behalf of African countries, Chile, Turkey, Uganda, Zambia on behalf of less developed countries (LDCs), Colombia, Hong Kong China, Chinese Taipei, Barbados and Norway supported the waiver.

However, Sri Lanka showed its concern and resentment against the EU, but stated that it would not oppose the request of waiver. Peru, Bangladesh, Vietnam and Brazil, on the other hand, supported in principle but sought consultations with the EU for further clarification and to address their individual concerns on certain products included in the package. But India opposed the draft proposals submitted by EU, indicating various concerns in the request for waiver.

what was india's action? and it reasons ?
 
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It does not matter if any country opposes...it takes one year and more to bring a case to the WTO so if EU wants to give the waiver then Pakistan can enjoy the benefits for more than one year atleast.

EU not going to bend the rule. Thats why they sent the matter to WTO for approval first.
 
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Is this the same issue as the one below? If yes, then I think India's concerns are fair. The EU is trying to provide aid to Pakistan for the recent floods by abolishing duty on its exports to EU. But this will skew the market in favor of Pak textiles as they will now be cheaper than Indian textiles which are the main competitors of Pakistan.

Direct aid by way of funds is ok but why harm other country's exports?

India sees red as EU allows duty-free access to Pak textiles
NEW DELHI: India will oppose preferential access given to Pakistan’s textile industry by the European Union as a relief measure against the devastating floods, a move that could render India’s exports to the region uncompetitive.

The three-year favourable access to the 27-country strong market will begin from January next year, giving duty-free access to a number of textile products from Pakistan.

“This measure clearly violates the principle of General Most Favoured Nation Treatment (of the WTO),” DK Nair, secretary general of the Confederation of Indian Textile Industry , wrote to the textiles ministry. “The ministry has not given any assurance, but said it will oppose the proposal ,” Mr Nair said.

Some officials, however, feel that India may not have a strong case. “The WTO actually has nothing substantial against preferential tariffs. Moreover, the EU has expressed its intention to ask for relevant waivers,” an official said.

“The WTO cannot interfere till a country imposes a measure, say a quota on imports , which allow imports from only some countries while preventing others,” said Ajay Sahai , secretary of exporters’ body Fieo.

The only way in which India could challenge the move is to expedite conclusion of its freetrade agreement with the European Union so that it too gets preferential access, he added.

The EU had, in October, introduced emergency autonomous trade preferences for Pakistan to help it recover from the devastating floods earlier this year. It decided to allow duty-free import 75 products from the country, 64 of them textiles, amounting to almost €900 million in import value.

The move would put India’s textile exports to the EU at a serious disadvantage as its products would continue to face 6- 12% import duty. India exported textiles and clothing worth $5.9 billion to the EU in 2009 while Pakistan’s exports totalled $2.2 billion.
 
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But India opposed the draft proposals submitted by EU, indicating various concerns in the request for waiver.

Nothing surprising here:rolleyes:. By the way Good luck India with your textile exports to the EU.
 
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If its going to hurt India's textile industry then I dont see any problem in opposing it.

Thats why I think BD too has showed concern on this development.
 
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If its going to hurt India's textile industry then I dont see any problem in opposing it.

Thats why I think BD too has showed concern on this development.

Showing concerns and opposing are 2 very different things. Had India shown concerns, we would perfectly understand but no they have to oppose even though the reality is well within grasp that Pakistan suffered the worst floods of its existence and we have only started rebuilding.
 
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EU not going to bend the rule. Thats why they sent the matter to WTO for approval first.

Both Bangladesh and India will oppose as it directly affects their industries...but as I said if the EU wants to really help Pakistan all they need to do is not listen to the WTO objections.

The fact that they brought it to the notice of the organization is a requirement as members.But they need not listen to the objections until a formal case is brought before the WTO.That takes more than one year. I had read an article about how some EU countries wanted to do this to help Pakistan atleast for a year. At stake is close to 200 million dollars.
 
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Showing concerns and opposing are 2 very different things. Had India shown concerns, we would perfectly understand but no they have to oppose even though the reality is well within grasp that Pakistan suffered the worst floods of its existence and we have only started rebuilding.

But arent were supposed to be two different sovereign nations ? And Indian delegation is supposed to look after the concerns of Indians and Indians only.

There are many labourers whose daily existense depends on this industry and I cannot think of one valid reason why the GoI should let these Indians suffer for the benefit of Pakistanis.

Everyone is to his own.
 
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Showing concerns and opposing are 2 very different things. Had India shown concerns, we would perfectly understand but no they have to oppose even though the reality is well within grasp that Pakistan suffered the worst floods of its existence and we have only started rebuilding.

India should oppose it since it directly affects India's textile industry that employs millions. Why doesnt EU simply help in reconstruction if it wants to help the flood affected people? Removing duties on Pakistani textiles will hurt competitors like India and BD, and thats why this approach by EU is flawed.
 
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India should oppose it since it directly affects India's textile industry that employs millions. Why doesnt EU simply help in reconstruction if it wants to help the flood affected people? Removing duties on Pakistani textiles will hurt competitors like India and BD, and thats why this approach by EU is flawed.

well India would always oppose any decision that is in favour of Pakistan, whether it effects herself or has nothing to do with India at all.

We have weaker foreign policy so we do not have a habit of objecting over each n every issue of our subcontinent.

Let India raise her eyes.... as always we are gonnai get what we have demanded from EU ;)
 
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