EU-Pakistan textile proposal meets with contempt

09/09/2010

EU Trade Commissioner Karel De Gucht recently proposed opening up the European textile market, on a temporary basis, to help Pakistan as it comes to terms with the flood disaster. However, the response was not as positive as he might have liked.

Mr De Gucht reportedly put forward a list of products, including 13 textile and clothing items, on which the EU should temporarily suspend duties for the Pakistani market. According to EurActive, he suggested the measure be “time-bound, limited, targeted, and be relatively quickly implemented”. The trade commissioner was hoping to gather support ahead of a meeting of trade ministers in Brussels on September 10-11.

EU products would not enjoy any reciprocal duty suspension when exported to Pakistan. However, the offer would not be limited to products coming from Pakistan; it would also cover those originating from other countries, notably India and China.

The suggested elicited some strong criticism from his fellow commissioners, who claimed it was a way of using humanitarian aid as an excuse for fixing a trade deal.

European textile confederation Euratex was among the critics. The non-profit group is concerned that the move could destroy the EU cotton sector amid soaring raw material prices.