KARACHI, March 1: European Union member states will meet on March 9 to give their consent for further reduction in anti-dumping duty on import of bedlinen from Pakistan.

Officials said on Wednesday that the recommendations made by the European Commission with regard to further cut in punitive duty from 7.6 per cent to 5.8 per cent required an approval by the EU member states approval.

However, the officials said they were confident that the EU states would not oppose the duty cut. The ministry of commerce has made a strong case for convincing the EU countries that the country needs employment opportunities for a large number of its youth.

The EU imposed an anti-dumping duty of 13.1pc in early 2004, but on the protest of Pakistani exporters a partial review was immediately announced by the EC. On the first closure of the review, the duty was reduced to 9.9pc and in second disclosure it was further reduced to 7.6pc. However, recently the EC suggested a further cut to 5.8pc.

With the implementation of new GSP rules from January 1, customs duty on all categories of imports from Pakistan has been reduced by 2.5 per cent, from 12 per cent to 9.5 per cent.

Pakistan Bedwear Exporters Association Chairman Shabir Ahmed said though the move of further cut by the EC was a welcome step, it would have been appropriate if the EC had suggested for total withdrawal of the punitive duty in a free market era. Due to this duty, Mr Shabir said, Pakistani exporters had been put at a disadvantage against their competitors in the international market.