January 10, 2007	Wednesday	Zilhaj 19, 1427

ISLAMABAD, Jan 9: Prime Minister Shaukat Aziz will visit Brussels later this month in a bid to convince senior officials of the European Union (EU) for starting talks on a possible free trade agreement (FTA) with Pakistan, Dawn has learnt.

At ministerial and diplomatic level, Pakistan has received a lukewarm response from the EU for having a preferential arrangement on trading of goods at reduced customs rates.

On the other hand, the EU has offered to start talks on FTA with Pakistan’s traditional competitor India, which competed with most of the Pakistani products from textile to primary commodities in the market of the 25-member EU block.

A senior official told this correspondent that prime minister, along with commerce minister, would visit Brussels following the conference of the World Economic Forum to be held in Davos, Switzerland, later this month.

According to the official, prime minister would apprise the EU about the negative fall-out of the proposed FTA with India on the Pakistani market, which has already been on declining trend following graduation from the generalized system preference (GSP) plus scheme—zero rate of duty.

A diplomatic source said that the EU was not ready to start negotiations on the FTA with Pakistan on the ground of having lesser market access for EU products.

“EU is looking for the big services market in the India besides export of other industrial goods to the large consumer market. While India would also export their locally branded vehicles, iron products besides textiles and other agri products,” the diplomat added.

The official said it would be very difficult for Pakistan to convince the EU for the FTA as they had already shown their unwillingness for the treaty.

On the other hand, the official said it would be very difficult for Pakistan to convince all the 25 nations of the EU to get their favour in starting negotiations on the FTA. Pakistan had already made a failed attempt by embarking at diplomacy to visit capitals of almost all EU members to seek their help in getting votes for inclusion in the EU GSP plus scheme—zero rate of duty.

Pakistan, the official said had requested the EU that their proposed move to have an FTA with India would hurt Pakistani market share as goods coming from India would be cleared at preferential duty. Islamabad demanded a similar arrangement to have a level playing field for its goods, the official added.