Pakistan: energy shortage could hold back benefits of EU tariff move
04/09/2013
As part of the EU’s response to the devastating floods that hit Pakistan in 2010, the European United agreed measures giving “emergency autonomous trade preferences” for Pakistan. This will mean that certain goods from Pakistan, including textiles and clothing, can enter the EU duty free (or at reduced tariff rate quotas), from the start of 2014.
On the face of it, this should present a good opportunity for Pakistan to secure a higher proportion of the almost $250 billion the EU spends each year on imported textiles and apparel than the 1.5% share it has right now.
Media in Pakistan have reported that Chinese investors are keen to increase their presence in the local textile production industry to take advantage of the new tariff regime, but some in the industry have warned that all will be in vain if factories fail to secure preferential access to limited energy supply.
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