World Trade Organization (WTO) member states have approved trade aid to be granted on an exceptional basis to Pakistan by the European Union (EU) to support the country in its recovery following massive floods in 2010.
The European Union on November 30, 2010, requested that it be allowed to temporarily lift its duties on certain products. In a revised request, following objections from WTO members, the European Union issued a revised request that it be permitted to offer trade preferences for 75 products from Pakistan, and confirmed that 20 of these products would be subject to tariff rate quotas rather than full liberalization.
The EU reiterated that it was asking for a waiver for an exceptional measure being taken in the light of exceptional circumstances, and would not be a precedent in the WTO. It added that the measures would be in effect from January 1, 2012, to December 31, 2013.
Members that have previously expressed concerns about the waiver said they were now able to agree to the waiver after consultations with the EU and Pakistan, but stressed the waiver should not be treated as a precedent. These countries included Brazil, Bangladesh - which is heavily dependent on textile exports, especially to the EU - Indonesia and Argentina.
In addition, South Korea expressed concern about a scheme in Chinese Taipei (Taiwan) approved last December to grant a USD66 subsidy to consumers purchasing energy-saving and domestically-manufactured washing machines, air conditioners and dishwashers. It said this scheme is inconsistent with WTO provisions against favouring domestic over imported goods. Korea added that a previous similar scheme by Chinese Taipei was estimated to have cost Korean producers some USD100m. Chinese Taipei took note of the concerns, which it said have been forwarded to the appropriate authorities./.