BRUSSELS, Sept 20: The Commerce Minister Humayun Akhtar Khan on Monday urged an expeditious European Union review of anti-dumping duties imposed on Pakistan's bed linen exports , saying Islamabad feared the combined negative impact on its textile sector of the 13.1 per cent bed linen fine and a planned end in 2005 of EU tariff preferences for Pakistani clothing exports.
We are concerned about a double whammy, Mr Khan told DAWN, referring to the anti-dumping fines and Pakistan's graduation next year from the EU's generalised system of preferences (GSP) for garments and made-ups.
Mr Khan said he had urged EU trade chief Pascal Lamy to ensure a quick and positive end to the anti-dumping review but warned that the speed of the process also depended on cooperation by Pakistani textile companies.
The government facilitated the review, but it now depends on how quickly the eight sample companies, which have been selected, can cooperate, Mr Khan said. EU officials said Lamy understood the predicament of Pakistan s textile sector but warned that several Pakistani companies had said they could not receive EU officials before November.
We will conduct the review as fast as we can but this is a constraint, Lamy's spokeswoman Arancha Gonzalez told DAWN. Graduation from the GSP, however, was a mechanical procedure which depended on share of a country's markets for specific products, Gonzalez said, adding: We have no margin of manoeuvre.
Khan and Lamy also held consultations on the EU's new GSP plan which will come into force on January 1, 2006, progress in the Doha trade round and plans for a South Asian free trade area.
We agree with the objectives of the new GSP: that countries, which need more support should be helped more, Mr. Khan said. The new EU scheme is expected to be simpler than the current system, with tariff preferences divided into three categories: a general system for all countries, special treatment for least developed states and finally, additional tariff cuts for countries, which abide by social standards, environmental norms and are engaged in combating drug trafficking.
I do not see why Pakistan could not qualify for GSP plus, Gonzalez said, referring to the scheme for additional GSP benefits. On progress in the Doha round a key concern for Lamy who was instrumental in getting the talks back on track after the failure in Cancun last year the EU is urging Pakistan to make a liberalization offer in the services sector.
"So far we have had a wait and see approach. Now we will be working on a possible offer," Mr Khan said. Signalling a renewed warmth in relations, the EU has also agreed to a Pakistani request for more textile quota flexibility through the early release of an additional 4,000 ton quota.
"Our trading relationship with the EU is robust," said Mr Khan after the talks with Lamy. The EU spokeswoman said trade relations between the two sides were much better than they were a few months ago. The situation on the overall landscape looks good, she underlined.
OUR REPORTER ADDS FROM ISLAMABAD: The European Commission (EC) has assured continued support in ensuring adequate market access to Pakistani products in the European Union member countries' market.
The assurance was made by EC Commissioner for Trade, Pascal Lamy in a meeting with Pakistan's Commerce Minister, Humayun Akhtar Khan in Brussels, according to a report released to media here.
The meeting which lasted over one hour, the commerce minister explained and impressed upon the EC Commissioner to ensure the continued availability of the generalized system of preferences (GSP) concession for Pakistani exports, which was of critical importance.