EU seeks duty removal on raw material
ISLAMABAD: Pakistan and European Union on Tuesday agreed on a comprehensive economic partnership, with a focus on increasing the volume of bilateral trade.
This understanding was reached in the fifth meeting of the EU-Pakistan Joint Commission, which was held in Islamabad. The next meeting will be held in Brussels in 2015 with a focus to make further progress on economic partnership.
An official source told Dawn that the EU delegation raised concerns over levy of export duty on certain products. Brussels wants removal of these duties on the plea that these raw materials are in great demand for EU industries.
Like other countries, Pakistan imposed export duty to ensure uninterrupted supply of raw material to domestic industries.
An official statement issued here after the meeting said that the EU and Pakistan welcomed granting of increased market access under GSP+ and expressed the hope that this would help increase Pakistan’s exports to Europe, creating additional economic growth and jobs.
Pakistan reiterated its commitment to continue implementation of 27 international conventions covered by the scheme, and both sides decided to enhance their dialogue in this respect.
The Ministry of Commerce claims that Pakistan’s exports to EU increased in January and February 2014 under GSP+ scheme.
Overall exports in April and May 2014 witnessed decline during the current fiscal year as against claims of the Ministry of Commerce.
The source said that EU in private meetings also demands convention plus commitments, like death moratorium etc. However, the source said this is not part of 27 conventions.
According to the source, the EU expressed satisfaction over the measures taken for export of fruits, especially mangoes to EU.
According to a statement of the EU delegation to Pakistan, both sides appreciated strengthening of EU-Pakistan relations and stressed the progress made in implementation of the EU-Pakistan five-year Engagement Plan.
They reaffirmed their common goal of further strengthening dialogue and cooperation.
The EU expressed its strong support for a prosperous, democratic and secure Pakistan, and its continued willingness to support democracy, good governance and rule of law.
Both parties agreed to continue extending cooperation on counter terrorism, defence, disarmament and non-proliferation.
They welcomed the holding of the first dialogue on disarmament and non-proliferation on June 16, and agreed to hold the third round of the CT dialogue and the second round of staff talks on defence issues in the near future.
The meeting also discussed economic reforms programme of the Government of Pakistan, highlighting priorities of expanding energy supply and broadening the tax base.
The reforms were fully supported by the EU.
On the issue of energy, the two sides endorsed the establishment of a dedicated energy dialogue to strengthen cooperation and exchange of information.
On migration, the EU called for the implementation of the EU-Pakistan Re-admission Agreement.
On development cooperation, the EU informed about the planned framework for EU’s development assistance to Pakistan for the period 2014-2020. Cooperation on science, technology and higher education was also discussed.
Reports were submitted to the Joint Commission by the three subgroups on trade, governance and human rights, and development and cooperation.
On human rights, the EU, while acknowledging efforts of the government to strengthen human rights infrastructure, expressed its concern on a number of issues, including freedom of media, freedom of religion and belief and situation of women.
On trade, there was an agreement to work on strengthening trade and investment and removing impediments.
On cooperation, the positive impact of continued engagement in rural development, education and governance, as well as need to build administrative capacity, was noted.
Pakistan’s side was headed by Foreign Secretary Aizaz Ahmad Chaudhry, and EU side by David O’Sullivan, Chief Operating Officer, European External Action Service.
Published in Dawn, June 25th, 2014