EU Temporarily Reclaims Tariff Preferences Granted To Pakistan

VTF Muhammad Aasim Shah recently held the world's largest textile fair in Frankfurt, Germany.

He said that after many efforts and demands of Pakistan exporters, the European Union has approved the free entry of 75 products of Pakistan since January 1, 2011 because of the front-line role of Pakistan in the fight against terrorism and the losses caused by recent floods.

However, it is rather disappointing that the European Union has been asked to withdraw the decision for three months, because India's lobbying force in the EU is very powerful and effective, forcing the EU to withdraw its market access decision to Pakistan.

Therefore, when purchasing Pakistan products, buyers can not meet the EU's declared tariff free access. They have begun to pfer their business to China and India.

Earlier, in the middle of 2010, the EU decided to grant duty-free access to Pakistan. This is a positive measure for Pakistan. Many importers are turning to Pakistan for enjoyment.

But now, importers feel that the Pakistan government has failed to convince EU Member States to support Pakistan's access to tariff free access, especially when the lobbying force of the other side is quite strong.

He further indicated that Pakistan will have another chance in the future, because Pakistan can make another request at the forthcoming joint meeting of the European Union.

Now, this issue has become a problem of self-esteem of the Pakistan government and exporters.