Pakistan, it seems, will have to patiently wait for another six months before its economic diplomacy bears fruits and a breakthrough in terms of greater market access for its exportable merchandise in the western markets is achieved.
This was the subtle message that our able trade managers got when they put up the case of Pakistan, the umpteenth time, in Brussels to be treated at par, if not preferentially, with its competitors in the region. Of the seven South Asian nations four (Bangladesh, Maldives, Nepal and Bhutan) have a freer access in the huge European market for being categorised as LDCs (least developed nations) that the union wants to support as its responsibility towards poor of the world.
Sri Lanka for reasons not very clear enjoys GSP+ (general system of preference plus) status. Nations covered under the scheme enjoy 15 per cent subsidy in tariffs on their exports. With India that like Pakistan does not get covered by these schemes, the European Union has initiated negotiations for a free trade agreement (FTA). That leaves Pakistan high and dry, all by itself in the sub-continent.
Trade experts consider the trade discrimination by the West against Pakistan a policy gesture of western governments to express their displeasure over the country’s political system. “It will require more than skills of persuasion and marketing to get increased market access in US and Europe. They want to have closer trade relations with stable democracies. Our brand of democracy with a military general at helm affairs does not sell there. We will have to learn to behave like a civilised nation to be able to develop closer, cordial commercial relations with the advanced nations of the world”, an old time trade negotiator told Dawn.
“This has nothing to do with politics”, Humayun Akhtar Federal Commerce Minister told Dawn over telephone from Islamabad. “Yes, we have not been given any commitment so far that the European Union will initiate negotiations for a free trade agreement with Pakistan as a result of the study that has been initiated by the most powerful regional grouping to analyse the discriminatory impact of its trade policy in South Asia on Pakistan’s economy”, the minister accepted.
“Over the years, we lobbied hard to qualify for GSP+ status to secure better terms of trade for Pakistan in EU but did not succeed. We, however, cannot afford to give up. Now we are engaged in bilateral trade talks with EU and succeeded in persuading them to form a sub- group to look into Pakistan’s trade related demands. In May this year the sub-group met in Islamabad and on October 16 the second round was held in Brussels. We try to sell Pakistan as a high growth country with a promising economic future”, the minister worried for dwindling textile export growth disclosed.
He was sounding disappointed with the stubbornness of the West that refused to oblige to, what he calls, “just and logical demands of Pakistan”, despite its role in West sponsored ‘war on terror’.
“Pakistan’s tariff regime is liberal. Those are actually non-tariff barriers that are coming in way of achieving better terms of trade for Pakistan”, Tanvir Ahmed Sheikh, President Federation of Chamber of Commerce and Industry said responding from abroad to a call by this scribe.
He viewed the political system in place in the country to be the cause that earned Pakistan ire of leaders of powerful western countries with attractive markets. “The private sector is suffering from the discrimination meted out to them in developed markets. The government should do all it takes to get us terms that offer the manufacturers even playing field in the preferred markets with our competitors”, he said articulating his concern for the difficulties that the textile exporters are facing in Europe.
The trading partners are demanding restoration of democracy that local business class and other privileged segments did not find so comfortable to work with in the past. “It is their dilemma, they are not enthusiastic about democracy but need markets abroad to sustain their business that is denied to them because of the lack of democracy”, an expert said.
How the private sector reconciles its two positions is hard to understand? It is, for the time being, leaving no stone unturned and is reaching out to all relevant quarters to get assurance that rules of the game that are tilted to suit its interests, will not be changed with possible political changes in Islamabad.
The economic diplomacy has become a key element of a country’s foreign policy targeting to protect and promote her commercial interests in an era of globalisation and to face the challenges and exploit opportunities thrown up by a fast integrating world. The question is how far is it succeeding?
