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EU waives tariffs for flood-struck Pakistan

EU waives tariffs for flood-struck Pakistan

Temporary reduction of duties on certain exports.

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EU leaders agreed to grant Pakistan a temporary reduction of duties on certain exports to help it deal with the aftermath of floods that have affected around 21 million people.

The specifics of the scheme remain to be determined, and it is unclear at present how much it might be worth. The European Commission has been tasked with consulting members of the World Trade Organization (WTO) – whose unanimous approval is required for reduced tariffs to take effect – and to present a final proposal next month. A WTO waiver on exports from Pakistan is expected to run into opposition from other countries including China and India.

Difficulties could also still emerge from EU member states. On 10 September, EU trade ministers had failed to agree on the scheme, with France, Italy and Portugal voicing objections. A meeting of member states’ security ambassadors in Brussels on the eve of the summit dragged on well into the night and ended without agreement.

The leaders also agreed to support Pakistan in seeking inclusion in a programme known as GSP+, which grants trade concessions in exchange for compliance with human-rights and labour standards. However, Pakistan faces significant hurdles in its bid to be included in GSP+.

Authors:
Toby Vogel 

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