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Envoy calls for boosting trade with EU countries

WIRASAT HUSSNAIN

KARACHI: Kurt Juul, Ambassador European Union Commission, said on Saturday that European investors were confident and comfortable with the present setup of Pakistan, but they "precisely" wanted Pakistan to pursue economic reforms on long-term basis.

Talking to Business Recorder, he said: "The economic reform announced by the government is in the right direction but its success would depend on its implementation. If it is a long-term plan, it would work. In any case, we would like to see a prosperous Pakistan."

Juul said the world is moving fast and the process of globalisation is there. "Pakistan should realise this and take a decision whether you want to compete globalisation where only fairness and rule-based trade would be welcome."

He said during 1991-99 trade between Pakistan and European Union countries remained very low. "In eight years, there was trade of only $ 300 million with the EU which is the biggest trade partner of Pakistan."

He compared India and Pakistan in terms of their trade volume with the EUCs and said Pakistan had a chance to increase its trade with EU but probably it had missed the bus, whereas, during the last eight years India had pushed its trade with EUC seven to eight times. "They have grown very fast in the region and this reality has to be accepted. Business opportunity in India is growing fast, whereas, you suffer from the lack of initiative."

The ambassador said there was a time when a wrong signal was sent to the world by Pakistan. "Its nuclear tests and the tiff with IPPs were difficult to stomach by foreign investor and, therefore, the trade is at a very low level today."

Juul said the low trade between the EUC and Pakistan could also be attributed to the lack of knowledge on the part of the Pakistani business community. "Trade is not very dynamic between Pakistan and EUC," he added.

He said there is need to educate and inform people on the business potential in existance in EUCs.

"There is great potential for export of fish and fish products, fresh and processed fruit, and of such goods produced where child labour is either not involved or children's rights are not abused," he said.

The business community of EUCs is interested in making investment in Pakistan and would like to explore the possibility of entering into viable projects.

He said export of fish could pick up if the exporters conform to the standards of hygiene acceptable to the importing country. The traders should visit these countries and explore new avenues for their products. Similarly, there is room for imports from the EUCs.

About developing strong trade relations between the EUC and Pakistan, Juul said, "Trade relations are important because we are the biggest and have been the biggest investors but we have also to conclude that while, and it is important to understand, that the trade volume has only increased slightly Ñ or since the beginning of the 1990-91, there is room to grow more. We would welcome a clear interest/intention from Pakistan, both, vis-a-vis simple but larger issues of a new round of trade negotiations in the WTO frame work."

Juul said child labour is a matter of great concern for the EU and the members would want to see that countries charged with child labour abuse settle the issue in accordance with labour laws.

The ambassador said, "I think it is a matter of concern when you find harsher child labour practices. This is a matter of concern; I think Pakistan would also agree. If you wish to develop trade relation with EUCs and increase your export, it would not be possible if harsher child labour practices are found in your country. Child labour and export cannot go together Ñ not compatible."

Juul said there was a concern in the EU as far as frequent human rights violations are concerned and "we wish to address this problem."

The delegation of the European Commission to Pakistan is actively involved in the development activities in Pakistan under its Economic and Development Cooperation Agreement with the Government of Pakistan. The interest of EC varies from the areas of human rights to infrastructure development and provision of emergency relief if and when required.

The delegation on Saturday hosted a business breakfast meeting in Karachi after holding meetings in Islamabad and Lahore. The ambassador of the EU called on Sindh Governor Azim Daudpota in the afternoon.