WTO approves two-year trade waiver for Pakistan

GENEVA: The World Trade Organization approved a waiver on Wednesday allowing 75 Pakistani products duty free access to European markets for two years to help textile exports after devastating floods in 2010, a trade diplomat said.

Pakistan trade officials said the deal was expected to significantly increase textile exports.

The deal faced delays over objections raised by countries such as Argentina, Brazil, India, Bangladesh and Indonesia. To allay their opposition to the waiver, the list includes 20 products with tariff rate quotas that will be applied instead of full liberalisation.

Bangladesh, which also relies heavily on textile exports, relented as it viewed the circumstances for the agreement as exceptional.

The waiver needs to be ratified at the general council meeting of the WTO on February 14 and 15 and if approved will apply until the end of 2013.