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India Opposes EU Tariff Free Access To Pakistan Textiles

2010/11/20 8:43:00 45

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European Union

Pakistan textiles have been granted tariff free access to the EU market to help Pakistan rebuild after the huge floods. However, India may oppose the EU's decision. India's reason is that the decision may lead India to lose its competitiveness in exports to the EU.

This preferential treatment will come into force in January 2011, several types of Pakistan

Textile products

It will be allowed to enter the EU's 27 member states without tariffs for 3 years.

Serious violation of tariff free access to a specific country

WTO

The general MFN principle, therefore, may be opposed by India.

However, some government departments believe that India's objection may not be very effective because WTO has not made any major laws or rules to prevent such preferential duties from its members, and the EU has already indicated its intention to seek related waiver.

In addition, the World Trade Organization has no right to interfere with such matters unless a country implements certain measures, such as import quotas, which allow imports of products from certain countries while limiting imports to other countries.

India's only option is to speed up the process of preferential trade agreements with the EU. Therefore, India can also enjoy tariff free access.

For the first time in October, the European Union offered preferential trade concessions to Pakistan in an emergency situation, because Pakistan suffered serious floods earlier this year, and national reconstruction needs help.

The EU gives Pakistan 75 products tariff free, of which 64 are textile products, and the total value of exports to the EU is about 900 million euros.

The EU's decision is not conducive to India's textile exports to the EU, because India products will continue to be subject to 6-12% import tariffs.

India exported $5 billion 900 million to the EU in 2009, while Pakistan exported 2 billion 200 million in the same year.

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