EU reduces concessions for two years: Dr. Baig

KARACHI: The European Union (EU) has approved a draft trade concession for Pakistan, reducing the concessions period to two years due to pressure from some member states, having own textile industry.

This was stated by Federal Advisor on Textile Dr. Mirza Ikhtiar Baig in a statement here Saturday. He said that the concessions will be subjected to assessments in third year.

He said the EU has also restricted that duty-free exports of fabric towel, women’s jeans and socks from Pakistan should not rise more than 20 percent per year and also slashed ethanol export from 100,000 tons to 80,000 tons.

EU has promised Pakistan to allow SGP Plus status from 2014, subject to Pakistan rectifying some treaties on human rights and good governance.

Dr. Baig pointed out that Bangladesh and Sri Lanka have indicated to oppose the trade concession to Pakistan at WTO and Commerce Minister and Secretary Commerce are already visiting these countries to muster their support.

He, however, said that these adjustments are not expected to lower considerably the expected benefits for Pakistan.