ISLAMABAD, Sept 15: The European Commission (EC) has agreed to immediately release exceptional flexibility quota of 4,000 tons to Pakistani exporters to meet their export commitment in the last year of the quota regime.
According to a communication received from Brussels, Tasneem Noorani, Pakistan's Secretary Commerce, met his counterpart Mogens Peter Carl, European Commission's Director General for Trade.
In the meeting, the secretary commerce impressed upon the Director General of the need for early release of exceptional flexibility quota of 4,000 tons to help exporters meet their export commitment in the last year of the quota regime.
In response, the EC director general confirmed to the secretary commerce that the additional quota would be released immediately. This release of exceptional flexibility quota would facilitate the Pakistani exporters of clothing and bed sheet as quota for these categories were rapidly utilized in 2004 and exporters needed this additional quota to accept future export order for 2004.
The EU has granted 2,000 tons, 500 tons and 1,500 tons in category 4, 5 and 20 respectively. The secretary commerce also appreciated the EC for having initiated the review for anti-dumping levy imposed on Pakistan's bedlinen since March, 2004 and requested him for early completion of the process.
On his part, he assured the EC of maximum support to the officials visiting Pakistan for carrying out on-the-spot investigation. The secretary requested the European Commission to show understanding on the issue, as the anti-dumping duty would irreversibly damage the industry, which has invested heavily in recent years.
Mr Carl explained the salient points of the new GSP scheme to be introduced from 2006. Several possibilities regarding Pakistan's benefiting from the scheme were explored. The European Commission assured Pakistan that the GSP would focus on countries most in need of GSP benefit. The issue of graduation of Pakistan's clothing sector in current GSP scheme for 2005 was also discussed.
Pakistan expressed its concern about the graduation calculations as the data reflected a borderline case and requested for further verification. The EC agreed to provide all relevant data to Pakistan for the purpose of verification.