EU-Pakistan to Initiate Joint Study on Trade
Pakistan Times Business & Commerce Desk

KARACHI: Federal Minister for Commerce Humayun Akhtar said Thursday that European Union (EU) and Pakistan will launch a joint study to find out whether EU’s trade policy in South Asia was impacting Pakistan.

Responding to a question at a press conference at TDAP office, regarding progress on Pakistan’s quest for free trade agreement (FTA) and GSP Plus with EU, the minister said that this study will help Pakistan to get desired results.

He pointed out that terms of reference (TOR) for this study have been finalised and the study will begin after the meeting of Pak-EU third generation sub-group on trade, scheduled in Brussels in October, 2007.

The minister said that this sub-group on trade was formed in a meeting between Pakistan and EU in May this year.

He said that four less developed countries Maynamar, Bhutan, Nepal and Maldives were already enjoying zero rated access in EU market while Sri Lanka qualifies for GSP Plus status.

Only India and Pakistan, out of seven SAARC countries, are subjected to duty on their exports in European Union. If EU starts trade talks with India what will happen to Pakistan’s trade with European block, he added.

Adding to minister’s reply, the Secretary Commerce Syed Asif Shah said that TOR included potential of Pakistan’s economy at current prices.

He said that if study shows that market access to LDCs, Sri Lanka and India was adversely affecting Pakistan’s exports to EU, than certain steps will be taken to compensate.

To a question regarding the review of anti-dumping duties on Pakistani textile exports, the minister that EU had already offered for a review, but Pakistani exporters were not positive about the outcome.

He said that exporters were of the view that anti-dumping duties will end in 2008 and there was no need for any further review. The anti-dumping was already brought down from 13.5 to 5.8 percent.

Responding to a question whether the on-going trade talks with India will be affected due to opening of disputed Siachen for tourism, he said the talks on confidence building measures (CBM) will continue.

However, he noted that India should avoid step as it was not a positive one.

Referring to IMF report on yawning trade imbalance, the minister said that the Fund has suggested for maintaining a balance between Monetary and Fiscal policy. This is what I have been saying, he added.

To a question, he said sufficient wheat was available with the provincial governments as well as PASSCO. The supply position will improve as more wheat will be released soon.

Besides, the government has floated a tender for the import 100,000 tons of wheat which will also create a comfort feelings in the market.

He said Ordinance for TDAP will be passed from the Parliament in the next session.

Humayun said country’s exports were progressing well and in two months growth rate was above 4 percent over last year. This is a good sign.

Talking of the board meeting of Trade Development Authority of Pakistan (TDAP), the minister said private sector directors of the new body will give their input for increasing country’s exports.

TDAP chairman said that Pakistan will participate in 100 international exhibitions under a new strategy.

He said research,market storming delegations will be sent of non-traditional markets of Russian, Central Asia and Africa.●