GENEVA — The European Union is poised to decide Thursday to temporarily suspend tariffs on 13 major textile and apparel products from Pakistan worth about 231 million euros, or $300 million, annually in a bid to help the Asian nation recover from devastating floods, senior officials said.
Zamir Akram, Pakistan’s ambassador to the United Nations and other international organizations in Geneva, said Saturday, “We hope the EU effort will succeed. We would also like to see the U.S. follow suit.”
As Pakistan begins reconstruction in the aftermath of a disaster that affected more than 20 million people, market access from the EU and the U.S., especially in the textiles sector, will be a vital step to enable the country to stand on its feet, he said.
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“Market access is also important for Pakistan, as well as the West, to overcome the threat of terrorism and extremism so it can create jobs and economic prosperity, which are essential to ensure security,” Akram said
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EU foreign ministers, with support from the U.K. and Germany, gave their approval, during a meeting in Brussels on Friday, to the compromise blueprint of EU trade commissioner Karel De Gucht, which temporarily suspends duties on single cotton yarn, woven fabrics of cotton fabrics, denim cotton fabrics and cotton-based men’s garments, EU officials said.
“Everybody agreed we have to act comprehensively,” the EU’s foreign policy chief, Catherine Ashton, told reporters after the closed door talks.
The plan to be presented for formal approval by ministers this week also requires the 27 EU countries to seek a waiver in the World Trade Organization from the tariffs imposed on the 13 products and seek support from other members.
Senior EU trade diplomats said they do not expect WTO members to oppose the move because it is only “a short-term suspension” of tariffs in response to an emergency.
Brazilian foreign minister Celso Amorim, asked whether his country would support the temporary waiver, said, “If that is needed to face the situation let us look at it with a sympathetic eye.”
Similarly, a high-level Indian diplomat indicated his country, despite a history of strained relations with Pakistan, would not object to a waiver request given the enormity of the crisis.
The U.S. has recently reiterated its support for so-called “reconstruction opportunity zones” in Pakistan that would create duty-free manufacturing areas, potentially for apparel, along the Afghanistan border. The U.S. Trade Representative’s office did not respond to requests for comment on the EU’s pending decision or whether it would follow suit.