By Martin Banks - 17th November 2011
The withdrawal of their opposition to these much needed measures sends a strong signal that they are indeed committed to free and fair trade in the interest of development
Robert Sturdy MEP
MEPs have welcomed news that India has withdrawn its opposition to EU proposals aimed at helping Pakistan recover from last year's devastating floods, which continue to affect some 20 million people.
India had been opposed to the suspension of import duties on key Pakistani imports.
But member states have agreed on a package of measures to help Pakistan recover from the flood, including additional humanitarian assistance and an increase of Pakistan's market access to the EU.
These measures, drafted by the commission, will eliminate tariffs on 75 product lines covering 27 per cent of Pakistan's exports to the EU, all with the aim of boosting Islamabad's exports by €100m per year.
Although the removal of the Indian veto eliminates a major obstacle to the implementation of the EU proposals, Bangladesh has signalled that it is still opposed to the measures.
Under WTO rules, all countries must agree to the temporary proposals for them to come into effect.
UK deputy Robert Sturdy, deputy chairman of parliament's international trade committee said, "The news that India has removed its opposition is encouraging, especially as EU and India negotiators are currently working to draft a comprehensive free trade agreement.
"The withdrawal of their opposition to these much needed measures sends a strong signal that they are indeed committed to free and fair trade in the interest of development."
He added, "These proposals are designed to help some of the poorest people in Pakistan recover from a major natural catastrophe for a two year period. The sooner that they are implemented the better."
