KARACHI, Oct 23: The European Union has said that Pakistan continues to enjoy special benefits under the Generalised System of Preferences (GSP).

“The textile relationship between the EU and Pakistan is unchanged,” Bill Lakin, director general of Euratex, the European Apparel and Textile Organization, stated while brushing aside recent reports that the EU has withdrawn the tariff concessions given to Pakistan last year.

According to reports reaching here the Pakistani representative to the EU, also confirmed this, adding recent reports that the EU has agreed to withdraw duty-free textile benefits to Pakistan under the European Commission notice C228 of September 25, 2002 have been misinterpreted.

This scheme has been specifically tailored to target clothing and textiles, which account for three-quarters of Pakistan’s exports to the EU. It is given under GSP scheme for countries fighting drugs trafficking.

The EU has removed import tariffs (around 7 per cent) on garment imports from Pakistan and increased the 14 existing quotas on textile and clothing imports from Pakistan by 15 per cent. In return, Pakistan has also improved access for EU textile and clothing exports, reducing duties for 2002 to three rates of five per cent, 15 per cent and 25 per cent — a five per cent reduction compared with 2001.

Lately rumours have been floating that the EU has withdrawn the tariff concession under Indian pressure and exporters were upset about their shipments already in the highseas as well as under production, a leading garment exporter and vice chairman Pakistan Knitwear Association, Anis Marfani told Dawn.

According to Bill Lakin, Pakistan’s preferential treatment is badly affecting the EU balance of textile and clothing trade with Pakistan in 2001, EU textile and clothing imports from Pakistan stood at 1.8 billion euros, while imports fell to 21 million euros from 39 million euros in 2000.

India has fought hard to obtain the same preferential treatment from the EU for its textile and clothing exports, but with no success. Though the European Commission is keen to conclude a textile agreement with India through its improved market access policy, nothing has been concluded from EU-India negotiations.