EU Parliament Gives Tariff Concessions To Textiles And Clothing In Pakistan

The European Parliament voted in May 10th (2011) in May 10th to support the proposal to suspend trade tariffs on certain textile imports in Pakistan to help boost Pakistan's economic recovery last summer.

However, members of the European Parliament insist on adding defence clauses to ensure that the EU can cancel tariff relief measures to Pakistan if the textiles and garments imported from Taiwan pose a serious threat to the manufacturers of the EU textile industry.

To reach the agreement, the European Parliament will begin consultations with the EU Council.

EU intends to provide

Members of the European Parliament also set annual tariff free import quotas for certain textile projects to replace full tax exemption measures.

In addition, the defense clause should be added to enable EU textile industry to take measures to restrict Pakistan's exports to Europe when it disrupts European products in the European market of similar products.

In addition, members of the European Parliament also applied this preferential treatment to Pakistan's human rights record.

The amendment of the parliament stipulates that if the implementation of restrictions on human rights and labour rights, sex discrimination or freedom of religious belief and the provision of any form of support or assistance provided by terrorist organizations in Pakistan, the European Commission shall immediately propose to cancel trade preferences for Pakistan.

Members of the European Parliament have postponed the final vote on the trade preference proposal, prompting the European Parliament and the European Union Council to reach an agreement in the coming months.

In addition, the bill must be implemented within the framework of the World Trade Organization (WTO).

The European textile and clothing industry has already declared its opposition to the EU's possible tariff exemption for textiles in Pakistan. The canal claims that if the measure is implemented, nearly 120 thousand jobs will be threatened.

The European textile and Garment Association (EuropeanApparelandTextileConfederation) also said that the Pakistan textile and garment industry was not located in the Pakistan flood disaster area, and the European Union provided it with the Euratex.