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WTO approves tariff waiver for Pakistan
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EU, 2 February, 2012
The World Trade Organization (WTO) has approved a request from the European Union (EU) to temporarily lift duties on 75 products from Pakistan, the majority of which are textiles, apparel, and footwear.
The two-year tariff waiver is intended to help the country recover from massive floods in 2010, and follows initial requests from the EU on in November 2010.
The measures will be in effect from 1 January 2012 to 31 December 2013, and will apply to products including cotton yarn and fabrics, jackets, T-shirts, anoraks, trousers, shorts, nightwear and underwear.
The Council for Trade in Goods, yesterday (1 February) described the waiver as "an exceptional measure being taken in the light of exceptional circumstances." It stressed the move "would not be a precedent in the WTO."
Some WTO member states, including Peru, Brazil and India, previously raised concerns the measure would adversely affect other suppliers to the EU through trade diversion and preference erosion. But all have now accepted the waiver.
The European Apparel and Textile Confederation (Euratex), meanwhile, had earlier made the point that the trade concessions would have no impact on helping those hit by the disaster since Pakistan's textile and clothing industry is located outside the flooded areas.
Under the new rules, customs duties will be exempted on certain products originating in Pakistan which are imported into the EU. In addition, a tariff preference is given for certain textiles and clothing, leather and footwear products.
The selected 75 product lines on which the waivers apply amount to almost EUR900m (US$1.18billion) in import value, accounting for about 27 per cent of EU imports from Pakistan.
The EU is Pakistan's largest trading partner, receiving almost 30 per cent of its exports. Textiles account for over 70 per cent of total Pakistani shipments to the EU, followed by leather products at 13 per cent..
The EU waiver request now passes to the WTO General Council for adoption.
Source: www.just-style.com
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