Brazil Opposes EU'S Tariff Exemption Proposal For Pakistan Textiles

Brazil objected to the EU's proposal to exempt Pakistan textile tariff from the European Union's WTO commodity Council today (2011) November 7th, and hoped to consult with the European Union about the impact of the move on Brazil's exports to the EU's textile products.

In November 30, 2010, the EU first proposed a proposal to temporarily exempt the importation of important textile and clothing products from Pakistan for 2 years to help Pakistan recover the damage caused by the summer floods in 2010.

The EU's tax-free treatment includes 75 important textile and clothing products exported from Pakistan to the European Union, with an import value of about $1 billion 200 million, and the total import value of the EU from Pakistan is US $4 billion 300 million. The exemption measures account for 27% of the total import value of the EU from Pakistan.

The EU's ambassador to WTO Pam Guerra Tis (Angelos Pangratis) said that the revised version of the European Union has dealt with the concerns of several members, and stressed that the measure is only two years. Pakistan also added that the EU proposal is a one-off measure and will not be established.

In response to the EU's amendment to the tariff exemption for Pakistan textiles, Vietnam alleges that the EU has settled their previous concerns. Indonesia is still studying the EU's proposal. Bangladesh's delegation still needs instructions from the capital. Peru has proposed a further consultation with the EU.

In the Council of November 7th, Brazil was the only country to publicly express its opposition. Peru, Bangladesh and Indonesia thought it would take more time to decide whether to agree with the EU proposal.

As India and Pakistan had relatively tight diplomatic relations, India initially took an opposing stance. The EU was relieved of 75 from the Pakistan flood relief plan.