KARACHI – Pakistan has finally succeeded in securing a European Union preferential trade deal nearly two years after the EU proposed a relaxation of tariffs to help the South Asian country’s economy recover after devastating floods.
The World Trade Organization (WTO) on Wednesday approved the much-delayed package covering 75 items at a meeting of its Council for Trade in Goods (CTG) in Geneva. The deal was scheduled to come into effect in January last year, but it was delayed after countries such as Argentina, Brazil, India, Bangladesh and Indonesia raised objections. The tariff changes will enter into force after formal approval by the WTO General Council in March.
Under the package, the total export value of the 75 tariff lines is estimated at US$1.03 billion and the average tariff on these products is around 8.86%, or less than a quarter of the $3.80 billion value of the country’s total global exports.
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