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Pakistan rejects EC bedlinen export offer
ISLAMABAD, April 30 : Pakistan has rejected the European Commission (EC) offer to accept 35,000 tons bedlinen exports without imposition of anti-dumping duty for resolving the lingering row over this issue.
“We have indicated our disappointment to the EC about its proposal to accept 35,000 tons bedlinen exports without charging any anti-dumping duty against the total exports of 65,000 tons as it will bring back quota regime.” Secretary Commerce Tasneem Noorani said this in an interview.
Answering a query about anti-dumping duty on exports of bedlinen, Tasneem Noorani said the EC had offered Islamabad to avail 35,000 tons exports without imposition of any duty, but it was not a feasible option.
“The ministry has consulted with all stakeholders and it is mutually agreed with the consent of industry that this step will enhance distortions,” he added.
The EC had imposed anti-dumping duty on exports of bedlinen during the last financial year and its investigative team also postponed its scheduled visit on account of security threat. Pakistani authorities say there is no solid ground to postpone the visit on security reasons as all the important dignitaries are constantly visiting the country and government provides them foolproof security.
The secretary commerce said Pakistan had also offered minimum exports price of bedlinen to the EC countries but they refused to accommodate it by saying it was a difficult mechanism to monitor effectively.
About Generalized System of Preference (GSP) plus for Pakistan from the EU, he said this scheme is meant for vulnerable countries and the western world thinks that Pakistan’s economy is out of danger zone. “The world is more sensitive about textile sector and it seems GSP plus as tough thing for us,” he observed.
He said the EC has not yet taken a decision and it will decide the issue by the end of next month. About the criteria for GSP plus, he said, the beneficiary country should have exports of less than one per cent to the EU and Pakistan’s exports are above that limit.
Noorani said the EU also imposed 27 different conditionalities to qualify for GSP plus. He said Pakistan has approached for GSP plus and it is confirmed that it will get favorable results in terms of GSP scheme.
“Had Pakistan not approached for GSP plus then there were chances of the EC dealing Pakistan and India’s case in the same manner even for entering into GSP scheme,” he added.
Answering a question about South Asian Free Trade Area (SAFTA) agreement, he said the Committee of Experts (CoEs) is holding its meeting these days at Katmandu for finalizing sensitive list (negative list), rules of origin and revenue compensation mechanism among the SAARC states. Under the SAFTA, SAARC countries have agreed to operationalise free trade agreement from January 1, 2006.
Asked whether delay in SAARC summit would affect SAFTA becoming operational on its due date, he said the CoE is working constantly and he cannot comment on it.
He said the Joint Study Group of Pakistan and India is likely to meet in Islamabad probably in May 2005 but the dates are not yet been finalised.
He said Pakistan has informed the Indian side about its tariff and non-tariff barriers hindering our exports despite New Delhi’s MFN status to Islamabad.
“All trading partners of India complain that New Delhi possessed most restrictive regime in the world,” he maintained.
About Free Trade Area (FTA) between US and Pakistan, the secretary commerce said both countries will hold talks on Bilateral Investment Treaty (BIT) by May this year, which will pave the way for starting negotiations on FTA.
He further said that the signing of FTA is very complicated exercise and it will take certain time for achieving the desired results.
Answering another query, he said Pakistan is striving hard to ink bilateral and regional trading agreements with different countries.
“We are at advance stage to finalize bilateral trade agreements with Malaysia and Singapore, and prime minister’s upcoming visit to these countries next month will boost trade relations with them,” he added.