BRUSSELS, Dec 22: Improved trade relations and better access to markets are Pakistan's top priorities in dealing with the 25-nation European Union, Commerce Minister Humayun Akhtar Khan said at the end of a ten-day tour of key EU capitals on Wednesday.

Mr Khan said he had been telling key EU trade ministers and officials hat Pakistan's drive to expand its exports to the EU and other markets as a crucial part of the fight against religious extremism.

"There is no better way of combating extremism than by creating jobs, and trade is the most effective tool to create employment," Mr Akhtar told Dawn, adding that his message to EU policy makers was simple: "When looking at trade relations with Pakistan, it is important to keep politics in mind."

Giving Pakistan improved access to EU markets would help generate jobs in a country which was struggling to generate employment and fight religious extremism, Mr Khan said.

"We have special development needs," the minister said, adding that he viewed modern-day trade diplomacy as requiring a focus on politics, not just purely commercial issues.

EU trade experts must realize that by exporting one billion dollars worth of garments, Pakistan could create 200,000 jobs, mainly for women. "We are not seeking aid, we are seeking market access," Mr Khan insisted.

The Commerce Minister said many EU governments, including countries like Greece, Spain and Portugal, which often worried about competition from Pakistan's textile industry, appeared sympathetic to his arguments. Germany, Britain, Sweden and Denmark have traditionally favoured improved trade ties with developing countries, including Pakistan.

While Islamabad's battle to win the hearts and minds of EU trade officials will be long and difficult, the change in Islamabad's trade strategy, with its new focus on security issues, is likely to capture the attention of policymakers who have often vaunted the values of trade as a "soft" weapon in the fight against global terror. But Mr Khan admitted that the way ahead was likely to be complicated. Pakistan's campaign for improved trade links comes at an important time in EU trade policy deliberations.

The EU is poised to make Pakistan eligible once again for its tariff-cutting scheme - the generalised system of preferences (GSP) - as of January 2006, after graduating Pakistani exports of clothing and garments out of the system in January 2005. But under proposals made by former EU trade chief Pascal Lamy earlier this year, Pakistani exporters are not expected to benefit from the more advantageous zero-duty version of the scheme known as "GSP plus."

This means that Pakistan will lose its current drug-related textile and clothing GSP concessions given in 2001. The Commission has said such GSP plus additional tariff benefits - going down to 0 duty - will now only be available for "vulnerable" countries which abide by labour, environmental and anti-corruption standards.

The Commission proposals, however, must still be approved by EU governments, giving Pakistan and other developing countries time to lobby EU capitals for a change in rules.