Saturday, March 3, 2012

Pakistan: WTO GSP Ruling Bad News for Pakistan

The WTO panel report has found the EU special tariff preferences for 12 developing countries under its "Drug Arrangements", as prescribed in EU's GSP regulation, to be a violation of trade rules because these discriminate against other developing countries. The panel was formed on the request of India (later joined by Paraguay), which claimed the EU arrangement to be inconsistent with the principal of non-discrimination under Article 1.1 of GATT 1944.

Pakistan has been one of the beneficiaries of this scheme since January 2002. The incentive includes suspension of customs tariffs (effectively making it zero percent duty) on imports from these countries for all products except those …

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