Pakistan and EU to upgrade bilateral ties

Date: 23/04/1998

By Shada Islam

PAKISTAN's bid to take part in Asia Europe Meetings (ASEM) may have been put off by EU and East Asian leaders in London earlier this month, but Brussels and Islamabad are on track to upgrade their bilateral political and economic ties.

A new EU-Pakistan cooperation treaty finalised this week during Pakistani Prime Minister Nawaz Sharif's visit to the European Commission will provide the framework for closer relations. Officials say that although the pact is unlikely to lead to any new benefits for Islamabad, it is an important symbol of improved political contacts between the two.

It will put relations between Pakistan and the EU on a par with Brussels' links with India and could help ease tensions in the trade sector.

Top of the list is anger in Pakistani business circles at Brussels' frequent use of the anti-dumping tool against Pakistani and other Asian textile exports.

In recent months, the EU has imposed anti-dumping fines on Pakistani exports of bed linen and slapped provisional punitive duties on grey-cloth sales in Europe. Trade experts say the fines will not only hurt the country's sales of textiles in Europe in the short term, but also cause long-term damage by encouraging European importers to look for alternative suppliers of the products in other parts of the world.

In addition, EU veterinary experts may soon take action to restrict imports of Pakistani fish and seafood products following concern over hygiene standards in many Karachi-based fish-processing plants.

Labour standards are a particularly difficult bilateral problem. Pakistan's efforts to eradicate bonded labour and child labour are under strict EU surveillance following new allegations by the International Confederation of Free Trade Unions (ICFTU) that Islamabad is doing little to curb such abuses.

The ICFTU has called on the EU to withdraw millions of ecu worth of trade concessions given to Pakistan and other developing countries through the Union's Generalised System of Preferences (GSP).