The European Parliament will allow Pakistan to export more goods duty free to the EU

MEPs decided approved a regulation which allows Pakistan to export more goods duty free to the EU, so as to help the economic recovery of its flood-devastated regions. This exceptional measure, to apply until the end of 2013, will include fabrics, garments, linen, ethanol and leather. The regulation also includes safeguards for the EU textiles market.

Pakistan will be allowed temporarily to export more goods duty free to the EU, so as to help the economic recovery of its flood-devastated regions. This exceptional measure is included in a regulation approved by MEPs in plenary session, and will include fabrics, garments, linen, ethanol and leather. It will apply until the end of 2013. Parliament inserted safeguard clauses to protect EU industry and jobs in the textiles, garments, ethanol and leather sectors, which are sensitive for some member states, against surges in cheap imports. Recently, €20 million additional European funds for victims of Pakistan's floods and conflicts.

MEPs also inserted amendments to the text enabling the EU to withdraw the trade preferences should Pakistan impose restrictions on exports of raw materials used to produce goods covered by the regulation (such as animal hide). They also inserted a statement that the measure is strictly a response to the specific situation in Pakistan and "should not constitute a precedent for the Union's trade policy". Moreover, Parliament inserted safeguard clauses to protect EU industry and jobs in the textiles, garments, ethanol and leather sectors, which are sensitive for some member states, against surges in cheap imports. These clauses stipulate that the Commission may reintroduce duties if EU imports of the products concerned grow by 25% or more.

EU trade preferences for the 75 goods will apply from the date when the measure is published in the EU Official Journal until 31 December 2013. This "trade aid" was first proposed two years ago when the flooding caused massive losses in Pakistan.