Pakistan Eu Trade Agreement

Conclusion: Europe`s challenge is to achieve an understandable and credible policy vis-à-vis Pakistan. The EU must be seen as a mere trading partner. Policy and defence remain weak areas of their foreign policy vis-à-vis Pakistan. European foreign policy towards Pakistan requires Islamabad to change its behaviour, but this can be seen as interference. At the same time, Pakistan must understand that respect for human rights is not a dead letter, but a requirement that must go hand in hand with real policy. The second summit was held in Brussels in June 2010. European Council President Herman Van Rompuy, European Commission President José Manuel Duro Barroso and EU Trade Commissioner Karel de Gucht represented the EU, while Prime Minister Yusuf Raza Gilani, Foreign Minister Mahmood Qureshi, Makhdoom Shah Mahmood Qureshi and Trade Minister Makhdoom Mohammad Amin Fahimhim, represented Pakistan. The aim of the summit is to “lay the groundwork for a strategic dialogue to forge a partnership for peace and development based on shared values, principles and commitments. In this regard, the Heads of State and Government reaffirmed their willingness to jointly address regional and global security issues, promote respect for human rights, economic and trade cooperation and the provision of humanitarian aid, and cooperate to further strengthen Pakistan`s democratic government and democratic institutions. [11] The five-year EU-Pakistan plan was adopted in 2012 after the Lisbon Treaty came into force.

Islamabad is the main beneficiary of a specific EU trade regime, but the UK was its main defender. The INTER agreement between the EU and Vietnam is the most comprehensive trade agreement the EU has with a developing country. After a considerable delay, the third cooperation agreement with Pakistan came into force in 2004. This agreement forms the current legal and political basis for the relationship. The latest five-year cooperation plan has broadened its scope to include other areas: strategic/political; Security democracy, governance, human rights and socio-economic development; Trade and investment Energy sectoral cooperation. An EU-Pakistan Joint Commission has also been set up. This institutional rapprochement was followed by several meetings at the highest level. The first meeting was held in Islamabad in 2007; the second took place in Brussels in March 2009 and the third in Islamabad in March 2010. EU imports from Pakistan continue to increase, while EU exports to Pakistan are declining for two main reasons: (i) weak demand from manufacturing, with Pakistan`s economy growing slowly since 2018; and (ii) Pakistan`s total imports generally decline, with the government deterring imports in order to address the growing trade deficit. While Pakistan`s economy has considerable potential, business costs, complex regulatory constraints and infrastructure constraints are detrimental to trade and growth. Pakistan`s trade regime and regulatory environment remain relatively restrictive.

Since then, the summits have been followed by strategic dialogue meetings. The first took place in Islamabad in April 2013, the last in March 2014 in Brussels. On 12 December 2013 (effective 1 January 2014), the EU granted Pakistan the coveted GSP status by an overwhelming majority.