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Britain pushes for Pakistan to get EU trade privileges
Proposals would help Pakistan recover from floods and bolster political stability, but have aroused protectionist opposition
Britain is pressing MEPs to back controversial proposals to grant Pakistan privileged trade access to European Union markets to help it recover from the flood disaster and bolster its political stability as fighting in Afghanistan spills over the border.
Briefing notes sent to members of the European parliament said the government "strongly supports" a decision by last month's EU summit to reduce duties on important imports from Pakistan with "immediate" effect.
"This is now a test of the EU's credibility," said the briefing paper issued by the Department for International Development. "We must ensure that we translate the political agreement reached by EU leaders into action that will make a real difference."
The European commission is expected to send a finalised legislative proposal to the parliament within the next few days.
Pakistani officials said the package, covering 75 products, could be worth up to 200m (£176m), mostly from increased textile exports.
Germany supported the British push to boost Pakistan's devastated economy. But the initiative has aroused protectionist opposition in textile-producing EU members including France, Italy and Portugal.
Pakistani officials said they feared the plan could be derailed at the World Trade Organisation by countries such as India and Bangladesh, which have their own preferential trade deals with the EU.
A WTO rules waiver is required for the plan to go ahead.
Pakistan is seeking to obtain increased market access until 2014, when it hopes to qualify for the EU's generalised system of preferences . "It's possible the Indians might try and block it. We're getting mixed signals," one official said.
The summit declaration said the commission would "explore options with WTO partners and present its finalised proposal, taking account of industrial sensitivities in the EU".
The EU pledge, termed a "firm commitment", represented a victory for David Cameron, who personally lobbied for it. It also marked a mending of fences with Islamabad. The prime minister provoked anger in Pakistan earlier this year during a visit to India when he criticised Pakistan's record in combating terrorism.
The flood disaster, which affected 20 million people, is expected to result in an estimated 2% reduction in Pakistan's 2010-11 GDP, a 10% rise in unemployment and the loss of $2bn (£1.25bn) in export revenues.
Britain pushes for Pakistan to get EU trade privileges | World news | The Guardian
Proposals would help Pakistan recover from floods and bolster political stability, but have aroused protectionist opposition
Britain is pressing MEPs to back controversial proposals to grant Pakistan privileged trade access to European Union markets to help it recover from the flood disaster and bolster its political stability as fighting in Afghanistan spills over the border.
Briefing notes sent to members of the European parliament said the government "strongly supports" a decision by last month's EU summit to reduce duties on important imports from Pakistan with "immediate" effect.
"This is now a test of the EU's credibility," said the briefing paper issued by the Department for International Development. "We must ensure that we translate the political agreement reached by EU leaders into action that will make a real difference."
The European commission is expected to send a finalised legislative proposal to the parliament within the next few days.
Pakistani officials said the package, covering 75 products, could be worth up to 200m (£176m), mostly from increased textile exports.
Germany supported the British push to boost Pakistan's devastated economy. But the initiative has aroused protectionist opposition in textile-producing EU members including France, Italy and Portugal.
Pakistani officials said they feared the plan could be derailed at the World Trade Organisation by countries such as India and Bangladesh, which have their own preferential trade deals with the EU.
A WTO rules waiver is required for the plan to go ahead.
Pakistan is seeking to obtain increased market access until 2014, when it hopes to qualify for the EU's generalised system of preferences . "It's possible the Indians might try and block it. We're getting mixed signals," one official said.
The summit declaration said the commission would "explore options with WTO partners and present its finalised proposal, taking account of industrial sensitivities in the EU".
The EU pledge, termed a "firm commitment", represented a victory for David Cameron, who personally lobbied for it. It also marked a mending of fences with Islamabad. The prime minister provoked anger in Pakistan earlier this year during a visit to India when he criticised Pakistan's record in combating terrorism.
The flood disaster, which affected 20 million people, is expected to result in an estimated 2% reduction in Pakistan's 2010-11 GDP, a 10% rise in unemployment and the loss of $2bn (£1.25bn) in export revenues.
Britain pushes for Pakistan to get EU trade privileges | World news | The Guardian
