Commenting on Bangladesh’s surprising objection to Pakistan’s preferential trade agreement with the EU, sources in the WTO have revealed that Dhaka had decided to support Islamabad’s case, but it could not communicate the decision to its team in time for the crucial Nov 7 WTO meeting.
Lost euros
“This puzzling stance of Bangladesh has cost Pakistan at least 50-60 million euros in lost exports of the 75 products included in the list of goods to be traded under the special trade concession,” the sources explained. This objection will delay the matter of EU trade concessions by at least another three months, they added. Earlier, after almost a year of negotiations with India, New Delhi agreed to drop objections to the Pak-EU trade deal conditional to Pakistan granting the former MFN status. However, Pakistan said the MFN will still be subject to India seriously addressing non tariff barriers. The dilly dallying tactics of India for the last year or so have cost Pakistan an enormous 250-300 million euros in terms of lost trade with the EU member states. Sources in the commerce ministry have also hinted that the possibility of behind-the-scenes connivance between India and Bangladesh cannot be ruled out. They added “out of the 153 members of WTO, 152 nations supported the trade deal, therefore the objection from Bangladesh eluded the collective wisdom of EU member states, the WTO member countries and all stakeholders by objecting to the unilateral trade concessions.”
Spanner in the works
“What is being termed a ‘goof up’ has cost us tremendously, and on such international forums it is unbecoming of countries to be unscrupulous regarding decisions of prime strategic and economic importance to other countries. We have supported Bangladesh on all forums and have extended support in every possible way, therefore such decisions could create fissures in longstanding political and economic partnership with the South Asian country,” said a source in the ministry of commerce. It is expected that as Bangladesh creases out the communication gap, Pakistan will request a special meeting to be convened in order to pass the unilateral trade concessions that require a waiver from the WTO.
Fact Check
The special Pak-EU trade concession was offered in lieu of unprecedented damage in the wake of floods and Pakistan’s participation in the war against terrorism. It is estimated that the combined damage to Pakistan’s economy from of the floods amounted to around $43 billion. According to rough estimates by Pakistan cotton ginners association, this natural calamity resulted in the destruction of two million bales of cotton, which affected its international price. These catastrophic floods also resulted in a massive loss of food production as 17 million acres of Pakistan’s most fertile crop land was submerged in water. Damage to agriculture was calculated at $2.9 billion, which included 700,000 acres of lost cotton crops, 200,000 acres of sugar cane and 200,000 acres of rice, in addition to the loss of 500,000 tonnes of wheat stocks. In recognition of Pakistan’s sacrifices against extremism and Al-Qaeda, taking into account the economic losses suffered due to terrorism and devastating floods last year, the EU leadership decided to give Pakistan-specific tariff concessions in the form of autonomous trade preferences under which 75 Pakistani products would benefit from duty free access to the European markets.
Bangladesh has played a negative role against Pakistan and should now apologize Pakistan for his behaviour. Pakistan will recover anyways even without the help of Bangladesh.
@Arslan.. funny I thought it was the other way around. Has Pakistan apologised for 1971????
@Shyam…why should Pakistan apologize for 1971? It is specifically mentioned in the Holy Qur'an that a believer should not conspire with a non-believer (kuffar) against a believer….
In this case…Sheikh Mujeeb conspired with Hindu's against Muslims (Pakistan) so that he could get East Pakistan separated from the mainland and rule it….
correct your history….
Pakistan and Pakistanis aren't the epitome of Islam, nor are we the protectors of it, nor are we in any way required to be. Pakistan has first and foremost been a game of thrones between parties who want to be in power. It has nothing to do with ISLAM for God's sake.
50-60m euros is small fry compared to the losses incurred during 1971. I think its about time the new generation of Pakistanis lives up to the mistakes of the past and accepts and tries to remedy them.
Well said. Congratulations.
BD has actually conspired agaisnt Pakistan through such an un-called for hinderance, assuring later to avoid any futher hinderance. BD has actually become a major competitor of Pakistan in the EU market and it did what competitive environment demands. Earlier, India was doing so and Pakistan assured of extending MFN status to it to reciprocate for favour in the EU. Interesting, the diplomacy keeps on hurdling both political and economic benefits of neighbours and even of those residing remote.
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