http://www.bloomberg.com/apps/news?pid=20601087&sid=at9RYA5VWdwI&refer=worldwide

Pakistan Plans to Contest EU Trade Advantages for India at WTO

By Warren Giles

Dec. 13 (Bloomberg) -- Pakistan plans to challenge European Union trade 
policy for poor nations through the World Trade Organization, concerned 
that among India, Sri Lanka and Bangladesh, it's the only one not given 
equal advantages.

In April 2004, WTO judges said the EU could exempt Latin American 
nations and Pakistan from import tariffs as long as it made the 
qualifying criteria open to all developing countries. That ruling 
followed a complaint by India that Pakistan's textile exports unfairly 
benefited from the EU measure, putting Indian rivals who paid higher 
duties at a disadvantage.

The EU revised the criteria for its preference programs a year ago to 
include duty-free imports for goods from South Asian nations such as Sri 
Lanka. The new criteria for the preferential measures exclude any nation 
that accounts for more than 1 percent of EU imports, catching Pakistan 
with 1.1 percent. Pakistan's complaint also comes just weeks after the 
EU said it wants to begin negotiations on a free-trade accord with India.

``The EU set very arbitrary criteria,'' Manzoor Ahmad, Pakistan's 
ambassador to the WTO in Geneva, said in a telephone interview 
yesterday. ``They chose a 1 percent threshold just to exclude us. It's 
neither unconditional nor treating similar countries in a similar way,'' 
as stipulated by the WTO's ruling, he said. ``The only countries left 
out were India and Pakistan and now they're working on a free-trade 
accord with India.''

A request by Pakistan for consultations with the EU would start a 
two-month period of talks under WTO rules. Unless the two sides resolve 
their differences, Pakistan may press ahead with litigation, asking the 
WTO to rule on the EU measures.

European Commission spokesman Peter Power declined to comment.

To contact the reporter on this story: Warren Giles in Geneva at 
[EMAIL PROTECTED]
Last Updated: December 13, 2006 04:22 EST

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