Concessions to Pakistan: EU move gets mixed reaction at CIG meeting

[Nalwa]

well India would always oppose any decision that is in favour of Pakistan, whether it effects herself or has nothing to do with India at all.

We have weaker foreign policy so we do not have a habit of objecting over each n every issue of our subcontinent.

Let India raise her eyes.... as always we are gonnai get what we have demanded from EU

You are being overly emotional about it. If you come out of the usual India-Pakistan rhetoric and analyze the situation, you'll see that EU decision is heavily loaded against India.

The fact is that EU should find another way to help Pakistan flood victims. The current solution adversely impacts India's exports and the million so poor weavers and traders that are dependent on it. Why cant the EU just provide direct aid to Pakistan?

 

[Hyde]

You are being overly emotional about it. If you come out of the usual India-Pakistan rhetoric and analyze the situation, you'll see that EU decision is heavily loaded against India.

The fact is that EU should find another way to help Pakistan flood victims. The current solution adversely impacts India's exports and the million so poor weavers and traders that are dependent on it. Why cant the EU just provide direct aid to Pakistan?

They don't want Aid... they want business!

and don't worry the agreement is already being revised for India's favour. They have included another term that if Pakistan's export grows upto 20% per year this agreement/concessions will no longer be valid and according to Pakistani traders that is going to surpass within the first 6-8 months

That was not an emotional statement... Just a fact
and yes you can raise your voice.... I hope someone listens to you

 

[Nalwa]

They don't want Aid... they want business!

and don't worry the agreement is already being revised for India's favour. They have included another term that if Pakistan's export grows upto 20% per year this agreement/concessions will no longer be valid and according to Pakistani traders that is going to surpass within the first 6-8 months

That was not an emotional statement... Just a fact
and yes you can raise your voice.... I hope someone listens to you

PS: Overall it is not going to effect much to India... only couple of millions of dollars so don't worry you won't be looking any economic collapse after this agreement. You already have trading advantage over us in textile industry

If that clause is included, things should be well. Pakistan could have entered into negotiations with India on its own to have India on its side.

I am trying not to respond to your sarcasm in bold by responding to you objectively.

 

[Hyde]

If that clause is included, things should be well. Pakistan could have entered into negotiations with India on its own to have India on its side.

I am trying not to respond to your sarcasm in bold by responding to you objectively.

Good...

Well this deal is not new... it was being discussed since ages now and we had been raising voice for such a package before floods. Flood was a reason why they finally agreed to accept our proposals. The motive was to provide jobs to peoples in Pakistan so that they could start working rather than being worried about terrorism and joining any terrorist organisation instead.

There are a lot of benefits for Pakistanis if this package was approved. It was little more than just a concession package.

regarding India, oh well the west cares about themselves before anything else and the western nations reluctantly accepting this proposal had also said that they have a fear they would lose about 40,000 jobs all over Europe after such agreement is signed. So you can say if west is willing to sacrifice... they would care least about India in this regard.

Yes India's concerns are valid but there are more things to worry about

 

[Nalwa]

Good...

Well this deal is not new... it was being discussed since ages now and we had been raising voice for such a package before floods. Flood was a reason why they finally agreed to accept our proposals. The motive was to provide jobs to peoples in Pakistan so that they could start working rather than being worried about terrorism and joining any terrorist organisation instead.

There are a lot of benefits for Pakistanis if this package was approved. It was little more than just a concession package.

regarding India, oh well the west cares about themselves before anything else and the western nations reluctantly accepting this proposal had also said that they have a fear they would lose about 40,000 jobs all over Europe after such agreement is signed. So you can say if west is willing to sacrifice... they would care least about India in this regard.

Yes India's concerns are valid but there are more things to worry about

My whole defence of India's stand is based on the fact that Indian and Pakistani textiles are competitors and a move to favor one would be to the detriment to the other.

I also agree that the aim of the concession-to help affected Pakistanis rebuild their livelihoods-is well founded. But instead of giving them concessions at the output end, EU should help finance their reconstruction. If possible, they could provide them the fund and the materials necessary to get back on their feet. That ways other countries exports will now suffer as well.

And also because lets face it, lakhs of poor Indians work in these textile units. They suffered a lot when the Indian Rupee became stronger a couple of years earlier and their exports were hit. So how fair is it to bring one country's poor out of destitution only to push another's into poverty? And it was certainly not the poor Indian weaver's fault that the floods occurred. So why indirectly punish them?

A better solution would have been for India and Pakistan to sign a FTA especially for textiles. I think India already has very less duties on Pak goods since Pak has been accorded the MFN status. If India and Pakistan could come to the table and figure out a way for easier entry for Pakistan's textiles and other goods into India, nothing better than that. I for sure know that there would be great demands for Pak textiles in India. Some of my family makes annual pilgrimages to Nankana Sahib and they have brought back pretty good salwaar kameez cloth cuts which are the envy of all the women in the family!

 

[KS]

My whole defence of India's stand is based on the fact that Indian and Pakistani textiles are competitors and a move to favor one would be to the detriment to the other.

I also agree that the aim of the concession-to help affected Pakistanis rebuild their livelihoods-is well founded. But instead of giving them concessions at the output end, EU should help finance their reconstruction. If possible, they could provide them the fund and the materials necessary to get back on their feet. That ways other countries exports will now suffer as well.

And also because lets face it, lakhs of poor Indians work in these textile units. They suffered a lot when the Indian Rupee became stronger a couple of years earlier and their exports were hit. So how fair is it to bring one country's poor out of destitution only to push another's into poverty? And it was certainly not the poor Indian weaver's fault that the floods occurred. So why indirectly punish them?

A better solution would have been for India and Pakistan to sign a FTA especially for textiles. I think India already has very less duties on Pak goods since Pak has been accorded the MFN status. If India and Pakistan could come to the table and figure out a way for easier entry for Pakistan's textiles and other goods into India, nothing better than that. I for sure know that there would be great demands for Pak textiles in India. Some of my family makes annual pilgrimages to Nankana Sahib and they have brought back pretty good salwaar kameez cloth cuts which are the envy of all the women in the family!

Exactly ---- why should the GoI allow the poor Indian weavers being punished for what happened in Pakistan ??

Why dont these people get to know that every nation takes cares of its interest first and the rest can wait.

Even if 1 one Indian weaver is getting affected then the GoI should stiffly oppose it because its that 1 weaver who cast his vote and not the Pakistani weavers.

 

[Hyde]

Exactly ---- why should the GoI allow the poor Indian weavers being punished for what happened in Pakistan ??

Why dont these people get to know that every nation takes cares of its interest first and the rest can wait.

Even if 1 one Indian weaver is getting affected then the GoI should stiffly oppose it because its that 1 weaver who cast his vote and not the Pakistani weavers.

we haven't rejected your claims... feel free to oppose it

Last time I heard, it is upon the buyers will from wherever he wants to buy. The sellers can't force to buy from their own market only.

This concession do give a slight edge to Pakistan but that does not mean other nations are completely out of the card. These are only 64 textile and 11 other items.... and mostly are bedsheets and towels etc. Not going to effect anybody if you see from the west's perspective

 

[Marxist]

Duty-free access: WTO rejects EU trade concessions to Pakistan

ISLAMABAD:
Pakistan has decided to launch a diplomatic offensive following rejection of a European Union (EU) move by the World Trade Organisation (WTO) to offer concessions under the Generalised System of Preference (GSP) to Pakistan for its export items. The rejection came following opposition to the EU move by some of the WTO members, including India, sources told Express newspaper.

However, a senior Pakistani official put it the other way. “India did not oppose Pakistan at the WTO meeting rather it opposed the EU move,” he said, adding that the EU would now take up the matter with New Delhi.

The rejection was made at a meeting of the Council for Trade in Goods (CTG) recently held at the WTO headquarters in Geneva.

Sources in Pakistan’s commerce ministry told Express that the European Union Commission had sought WTO’s approval for duty-free access to Pakistani products worth $500 million.

According to the sources, most of the WTO members were in favour of the EU move, but some of them, including India, opposed giving the special trade privilege to Pakistan.

India argued that most of the Pakistani products to be given duty-free access to European markets were not manufactured in the areas devastated by the recent floods.

It said the EU wanted to offer the GSP facility to Pakistan to help tens of thousands of people affected by floods. But since most of the industrial units, where the items are being produced, are located in the areas unaffected by floods, the move would help industrialists and not the flood survivors.

New Delhi said that the international community should provide more funds for the rehabilitation of the flood survivors instead of offering it the GSP facility.

Pakistan’s Commerce Secretary Zafar Mehmood confirmed that India opposed the EU move at the WTO meeting. He added that since it was the EU move, now the European Union would try to win over India before next WTO meeting.

Sources told Express that the European Union Council had unanimously approved duty-free access to Pakistani items in European markets. And it had mandated the European Union Commission to seek approval for the move from the WTO.

The move was to be implemented from January 1, 2011 after approval from the WTO. However, India’s opposition has put the trade privilege for Pakistan in the doldrums.

Sources told Express that Pakistan was supposed to export $500 million worth of items to European markets under the GSP facility.

It is the first time in the history of European Union that a non-European country would be given duty-free access to European markets. Earlier this facility was extended to Bosnia Herzegovina and Moldova.

Commerce Secretary Mehmood said that Pakistan would automatically get GSP-Plus status following duty-free access to its products in European markets. And under the GSP-Plus facility, Pakistani products would get duty-free access to American markets.

Sources told Express that with the GSP-Plus facility Pakistan would be able to export billions of rupees worth of products to American markets under the Reconstruction Opportunity Zones agreements between Islamabad and Washington.

However, following the rejection of the EU move by the WTO, the future of the GSP-Plus facility for Pakistan also hangs in the balance.

Duty-free access: WTO rejects EU trade concessions to Pakistan – The Express Tribune

 

[viper28]

You are being overly emotional about it. If you come out of the usual India-Pakistan rhetoric and analyze the situation, you'll see that EU decision is heavily loaded against India.

The fact is that EU should find another way to help Pakistan flood victims. The current solution adversely impacts India's exports and the million so poor weavers and traders that are dependent on it. Why cant the EU just provide direct aid to Pakistan?

Could you please provide evidence from which we can conclude that the Pakistani waiver is heavily loaded against India? The EU initiative can only be lauded due to the fact that trade will enable Pakistan to rebuild its devastated economy. There's no better way for Pakistan to address the current economic woes, but to increase trade (export in particular). Indian opposition is nothing, but mere protectionism. By the way, protectionism which has no grounds.

 

[viper28]

The fact is that EU should find another way to help Pakistan flood victims. The current solution adversely impacts India's exports and the million so poor weavers and traders that are dependent on it. Why cant the EU just provide direct aid to Pakistan?

Direct aid is not the solution for the economic problems faced by Pakistan. Aid doesn’t even address the short-term economic problems let alone the structural problems. Besides, aid is temporary and ends up in the pockets of the corrupt politicians. In fact, aid is the root of all the problems in countries like Pakistan. Aid doesn’t reach the intended target group. India is a prime example that used trade to its benefit to prosper. That solution also applies for Pakistan. The proverb, “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” is fitting.

 

[viper28]

But since most of the industrial units, where the items are being produced, are located in the areas unaffected by floods, the move would help industrialists and not the flood survivors.

By openly opposing a waiver meant to repair the Pakistani economy India has in effect backstabbed Pakistan. To make matters worse, India has also shot itself in the foot. After all, a prosperous Pakistan is also in the best interest of India and the region at large.

However, a senior Pakistani official put it the other way. “India did not oppose Pakistan at the WTO meeting rather it opposed the EU move,” he said, adding that the EU would now take up the matter with New Delhi.

That's a very flawed and inaccurate statement made by the unknown official. Similar pessimism could be applied to aid which doesn’t reach the needy. The solution for the EU is to handout trade concessions with conditions that guarantee transparency and oversight. Conditions which guarantee that the flood affectees are actually benefitting from the revenues generated from trade.

 

[Awesome]

what was india's action? and it reasons ?

Basically only India and the people it was able to use its political clout over opposed Pakistan.

India's argument was that the textiles are not being made in flood affected areas so it would only help industrialists. Which is short sighted since Pakistan's economy has been hit and the inflow of money helps everyone in Pakistan.

Its not all over yet, apparently, EU is questioning New Delhi over its reasons to oppose the move. I think it has to be a unanimous vote and only India has voted against it, the others just showed "concerns". How stereotypical.

 

[Nalwa]

Could you please provide evidence from which we can conclude that the Pakistani waiver is heavily loaded against India? The EU initiative can only be lauded due to the fact that trade will enable Pakistan to rebuild its devastated economy. There's no better way for Pakistan to address the current economic woes, but to increase trade (export in particular). Indian opposition is nothing, but mere protectionism. By the way, protectionism which has no grounds.

Read my replies to Zaki above. I have elucidated how this waiver will adversely affect India's textile workers, most of them are poor themselves, just like Pakistan's. Here's an excerpt from my previous post-

I also agree that the aim of the concession-to help affected Pakistanis rebuild their livelihoods-is well founded. But instead of giving them concessions at the output end, EU should help finance their reconstruction. If possible, they could provide them the fund and the materials necessary to get back on their feet. That ways other countries exports will now suffer as well.

And also because lets face it, lakhs of poor Indians work in these textile units. They suffered a lot when the Indian Rupee became stronger a couple of years earlier and their exports were hit. So how fair is it to bring one country's poor out of destitution only to push another's into poverty? And it was certainly not the poor Indian weaver's fault that the floods occurred. So why indirectly punish them?

 

[Awesome]

Read my replies to Zaki above. I have elucidated how this waiver will adversely affect India's textile workers, most of them are poor themselves, just like Pakistan's. Here's an excerpt from my previous post-

Actually thats the worst thing to do. Why give free aid, when you can give business? It is the age old philosophy, of teaching a man to fish instead of giving him a fish.

Actually the real help anyone can give Pakistan is 1) Not give aid 2) Give trade. No freebies.

 

[Nalwa]

Basically only India and the people it was able to use its political clout over opposed Pakistan.

India's argument was that the textiles are not being made in flood affected areas so it would only help industrialists. Which is short sighted since Pakistan's economy has been hit and the inflow of money helps everyone in Pakistan.

Its not all over yet, apparently, EU is questioning New Delhi over its reasons to oppose the move. I think it has to be a unanimous vote and only India has voted against it, the others just showed "concerns". How stereotypical.

The rhetoric aside, what Pakistani members here fail to see is that, Indian and Pak textiles are direct competitors. So any benefit to Pakistan would adversely affect India's exports.

A duty-break to Pakistani textiles will surely increase their exports thus eating into the Indian share of the pie. Why should the Indian textile exporters be faced with a scenario which will adversely impact their exports? What wrong have the Indian poor weavers committed?

Helping the Pak economy is all good but why should that happen at India's cost? I am sorry but India should use all its political and economic clout to protect its export markets. There are better ways to help Pak economy without harming others.