THE Islamabad visit of European Union foreign and security policy chief Baroness Ashton has rekindled hopes of an early implementation of limited, unilateral trade discounts for two years that the 27-nation bloc had announced one-and-a-half years ago. The purpose of the trade concessions for the 75 imports from Pakistan was to help the country’s economy recover from the devastating floods of 2010, and the package was supposed to become effective from Jan 1, 2011. It has, however, been delayed because of objections raised by various textile-exporting nations at the WTO. The objections have since been withdrawn and a WTO waiver obtained. Still the concessions remain unimplemented, not least because of opposition from some textile-producing EU member countries, although the measures have largely been ‘watered down’ to address their concerns. Now Ms Ashton has assured Islamabad of an early “positive outcome” at a trialogue involving the European Council, Commission and Parliament in Brussels.
Few have doubted the EU’s commitment to implementing the trade measures because it involves the union’s political credibility. But the delay in the transformation of the commitment into reality has certainly caused anxiety amongst many in Pakistan. The early implementation of the measures must boost mutual confidence and strengthen the EU-Pakistan business and political ties that the Strategic Dialogue initiated by Ms Ashton’s visit seeks to achieve. The dialogue that aims at transforming what is described as “trade-focused ties into a strategic partnership” to “bring political and security issues to the forefront” will not bear fruit unless Pakistanis are reassured of its economic benefits for them. At the same time, we must forget future trade concessions like GSP+ and a free-trade agreement with our largest trading partner unless we improve our record on human and labour rights, environment and governance.
More importantly, the future ‘strategic’ EU-Pakistan partnership and business relations will largely depend on how Islamabad deals with the West’s concerns about peace in the region, especially in Afghanistan. Though the baroness told Dawn in Brussels before embarking on her first-ever visit to the country that the EU views Pakistan “in its own right” and is willing to help it politically and economically, Afghanistan is territory that cannot be avoided. Eventually it does get to a stage where details such as the ban on Nato supplies come to the fore. The triangle is intriguing: Pakistan-US-EU. Islamabad has the sensitive task of keeping the EU engaged and will ultimately be under great pressure so long as there is a West that combines the other two members in the equation to push for its interests.
