The European Union has issued notice for implementation of trade concessions package to Pakistan. The package provides duty-free access for 75 Pakistani products to the EU nations.
The trade concessions package is an effort by the EU to compensate Pakistan for the loss occurred due to the devastating floods of 2010.
Addressing a press conference, Pakistan’s Senior Commerce Minister Makhdoom Amin Fahim said the EU package is likely to accrue financial benefit of around € 500 million to Pakistan by December 2013.
Under the trade concession package awarded to Pakistan, only 25 percent of the annual quota will be available for duty-free access during the remaining part of the current year, while a full 100 percent quota will be available next year.
The European Commission will manage the duty-free access quota and the Pakistani officials would have to only confirm the Pakistani origin of the exported products, which would make them eligible for trade concessions.
The Minister further informed that Pakistan has signed a memorandum of understanding (MoU) this month with the four-nation European Free Trade Association to consider the possibility of entering into a trade agreement. The grouping consists of Iceland, Liechtenstein, Norway and Switzerland.
Pakistan is also hoping to secure Generalized System of Preferences (GSP) Plus status, to be effective from 2014, to gain duty-free access to all Pakistani products. However, Pakistan would have to implement all human rights conventions signed by it at various global forums before gaining GSP Plus status.