BRUSSELS, Dec 1: Pakistan and the European Union are nearing a compromise deal allowing Pakistani exporters of bedlinen to escape punitive EU anti-dumping sanctions, Pakistan’s Commerce Minister Humayun Akhtar told Dawn on Monday.

Mr Humayun, who met EU Trade Commissioner Pascal Lamy for two hours of talks, said the two sides were moving towards a “quantitative restriction type” or tariff quota agreement under which a certain quantity of Pakistani exports of bedlinen would continue to be exported duty-free to the EU but amounts over and above the set limit would be subject to tariffs.

The minister said the bedlinen quota agreed by the two sides would preserve Pakistan’s existing share of the EU market.

Pakistan was also demanding that out-of-quota duties applied on its bedlinen exports “should be fair to keep Pakistan’s exports competitive,” he said.

He said an urgent compromise with the EU was needed to allow Pakistani exporters to escape tough anti-dumping duties being planned for December by the European Commission.

“This is the only constructive solution I am not jubilant but under the circumstances we are trying to minimize damage to our textile industry,” the minister told Dawn.

He underlined that despite Pakistan’s insistence that there had been no dumping of bedlinen, the EU was convinced of the contrary and was poised to slap fines on Pakistani exports.

Lamy was also opposed to Pakistan’s suggestions of voluntary price restraints because such arrangements were considered too difficult to manage by European customs authorities, he said.

The option of taking legal action against the EU would have been long and costly and exposed Pakistani exporters to years of difficulties, Humayun warned.

Under the deal still being worked out, Pakistan has suggested that bedlinen meant for hospitals and hotels should be classified separately from other categories.

Islamabad also wants an EU promise to link future exports of bedlinen with any tariff concessions given to Pakistan under a revised textiles pact which will replace the 2001 deal done by the two sides. This will depend, however, on reciprocal tariff concessions given by Pakistan to EU exports.