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The commerce ministry is mum over the progress made on issues relating to Generalised System of Preferences (GSP) and anti-dumping duty being deliberated with the European Union (EU). Commerce secretary Tasneem Noorani held negotiations with EU leaders in Brussels last week and President General Pervez Musharraf also made a phone call to the French President for market access, but the outcome of efforts is awaited despite Pakistan's consent to accept illegal Pakistanis working in EU-member countries.

One of the officials said EU was annoyed with Islamabad for disclosing the scheduled visit of their anti-dumping investigation team to Pakistan: that's why commerce minister Humayun Akhtar Khan and the commerce secretary were reluctant to disclose developments made during recent negotiations with EU.

However, analysts were of the view that Pakistan's request for GSP facility was still in place and it would make all-out efforts to reap the fruits of GSP.

Purchase of Airbus rather than Boeings from the United States, reduction in duties on cars made in Europe and opening of banks' branches were the major demands of European Union.

The commerce minister was worried over the effects of EU's revised GSP scheme on the country's exports to the 25-nation EU block.

The revised scheme, due to come into force on July 1, grants duty-free entry of export goods of developing countries to the EU market.

EU was of the view that it could not grant Pakistan benefits not available to India and other developing countries under its revised GSP scheme without violating WTO rules.

India successfully challenged in the World Trade Organisation (WTO) this particular provision of the EU's GSP scheme, which granted Pakistani exporters of textiles and garments extra benefits not enjoyed by Indian exporters. It held that the provision discriminated against other developing countries.

Pakistan's textile and clothing exports to EU amounted to two billion euros in 2003, as compared to Indian exports of just under four billion euros.

Copyright Business Recorder, 2005


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