European Union leaders have agreed to grant limited trade concessions to Pakistan to help it recover from the impact of recent floods that displaced more than 20m people in the country.
Although details of the concessions are not yet available, it is expected that Pakistan will receive an immediate and time-limited reduction in duties on key exports to the European Union.
The arrangement could be worth around EUR300m (US$392m) over a year and will reduce duties on cotton yarn, cotton fabrics of various categories, denims, and cotton based men’s garments.
just-style also understands that the EU leaders have agreed to grant Pakistan GSP+ status as soon as the country meets criteria on good governance and human rights.
Gohar Ejaz, chairman of the All Pakistan Textile Mills Association (APTMA) told just-style that the textile is the only industry which could boost employment and help recovering the economy of the country.
Full details are expected to be revealed over the next few weeks, with the European Commission working with the World Trade Organisation (WTO) to work out how the concessions can be put into practice. However, there is also likely to be opposition to the move from textile-producing countries within the EU such as France, Italy and Portugal.
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