08 February 2005	Tuesday	28 Zilhaj 1425

ISLAMABAD, Feb 7: The European Union ambassador to Pakistan Iikka Uusitalo on Monday the EU would make the new Generalised System of Preferences (GSP) scheme more transparent and WTO-compatible to avoid litigation from any country. The scheme is being launched in July.

He was talking to Dawn after the inauguration of a seven-day training workshop on WTO agreements here on Monday.

The envoy said that this time, the EU was very particular about the transparency of the scheme as India had already challenged the EU drug related GSP scheme in the WTO and the panel decided the case in their favour.

"The EU has already conveyed this concern to Pakistan's prime minister, commerce minister recent visits to Brussels," he said.

Replying to a question, the ambassador said that only those countries could qualify for the GSP plus scheme, which would meet the conditionalities of the scheme.

The conditions attached with GSP plus scheme included ratification and implementation of 27 conventions-16 human and labour rights related, while 11 on good governance and environment; little diversifications: 5 largest exports to EU must represent more than 75 per cent of its total GSP covered imports and GSP imports from that country are less than 1 per cent of total EU imports under GSP and the changing of rules of origin.

Under the proposed new EU rules of origin, any country could not export a product to EU member countries with their own brand name, which have more than 50 per cent outsourced materials, etc.

To another question, he was less hopeful about the inclusion of terrorism clause in the GSP plus scheme to give special treatment to Pakistan. He said that there was no connection of GSP scheme with the re-admission agreement.

To another question, the envoy said that the commission was also considering another proposal to put into effect the new GSP scheme from April instead of July to help the tsunami affected countries in the Asia.

He said that under the normal GSP scheme Pakistan would enjoy reduction of 3.1 per cent on export of goods to EU member countries. The average EU duty on Pakistan's textile and clothing would be 12.5 per cent.