WTO body rejects EU move to grant GSP to Pakistan

---

Nazmul Ahsan
The Council meeting of the World Trade Organisation (WTO) has rejected the move of the European Union (EU) to offer Generalised System of Preference (GSP) facility to Pakistan for 75 of its export items.
The rejection came following opposition to the EU move by a number of WTO members, including India, Peru and Venezuela, a source in the foreign ministry said.
Bangladesh apparel exporters, who were very much worried over the EU move, have hailed the decision of the WTO.
The EU is the largest export destination of Bangladesh as exporters enjoy the duty-free facility in the Union under the GSP scheme.
The rejection was made at a meeting of Council for Trade in Goods (CTG), presided over by WTO Director General Pascal Lamy. The meeting was held on Tuesday at the WTO headquarters in Geneva.
"We are relieved now as the CTG meeting of WTO
rejected the proposal of EU to provide Pakistan with waiver facility under MFN (Most Favored Nations) criteria," a top official in the Ministry of Foreign Affairs told the FE on Wednesday.
"India, Peru and Venezuela opposed the move, while China and Brazil pleaded for further examination of the issue before providing Pakistan with the special trade privilege," he added.
"The CTG meeting will be held again in April to review the situation."
Of 75 items that Pakistan sought EU GSP included eight items in which Bangladesh has high stakes. The items include leather goods, shoes, knitwear, jeans, home textile and readymade garment (RMG).
According to WTO regulation, CTG meeting has to approve any proposal for waiver under MFN criteria. If a single member country opposes in the CTG meeting, the decision cannot be made, a top trade official said quoting the regulation added.
Bangladesh enjoys the GSP facility in EU countries as similar facility is applicable to other least developed countries in the world.
Earlier, Bangladesh made a petition to the WTO on the issue. In the petition Bangladesh expressed the fear hat country like Bangladesh would be badly affected if the proposed GSP facility was granted in favor of Pakistan.
Anwar-UL-Chowdhury(Parvez), former President, BGMEA, hailed the decision of WTO, saying, it's a good news for Bangladesh as the export from Bangladesh to EU countries would be affected in case the GSP is offered to Pakistan.
"Pakistan cannot be eligible for GSP facility due to its status as developing country," Parvez told the FE.
Parvez also thanked the government for its quick response on the issue.