Other available languages: FR
Mr Claude Cheysson, the Member of the Commission with responsibility for North-South relations, will make an official visit to Pakistan from 31 January to 1 February 1986. This will be the first visit by a Member of the Commission to a country which has had contractual links with the Community since 1976. During his visit, Mr Cheysson will have talks with President Mohemd Zia-Ul-Haq and the Prime Minister, Mr Mohammad Khan Junejo and also with Foreign Minister, Mr Sahabzada Yacub Wattoo, the Trade Minister, Mr Saleem Saifullah, and the President of the Senate, Mr Ghulam Ishaq Khan. The talks will cover bilateral relations between the Community and Pakistan, international economic questions and the situation in the region. - 2 - THE DEVELOPMENT OF RELATIONS BETWEEN THE COMMUNITY AND PAKISTAN Pakistan is linked to the Community by a non-preferential Commercial Cooperation Agreement signed in 1976. As a former member of the Commonwealth with traditional trading links with the United Kingdom, Pakistan was one of the countries covered by the Joint Declaration of Intent annexed to the Accession Treaty in which the Community undertook to seek solutions to the trading problems posed by the United Kingdom's accession to the Community. These institutional links were further developed recently when, in July 1985, a new agreement for commercial, economic and development cooperation - currently being examined by the authorities of both parties - was signed. Commercial Cooperation Agreement Following the conclusion of a commercial cooperation agreement between India and the Community in December 1973, the Council agreed in October 1974 to open negotiations with a view to the conclusion of a similar agreement with Pakistan. This Agreement was concluded in June 1976 and took effect in July 1976. It is a non-preferential agreement under which each side accords the other most-favoured-nation treatment. A Joint Commission was set up under this Agreement charged with studying ways of overcoming trade barriers and promoting cooperation between the two parties with a view to developing and diversifying their trade. The Joint Commission was also entrusted with supervising the proper functioning of the sectoral Agreements between the Community and Pakistan. The Community also undertook to examine in the Joint Commission possible ways of increasing trade in basmati rice an cotton products. The Joint Commission has met regularly in Brussels and Islamabad. It has launched a trade promotion programme under which the Community finances the participation of Pakistani exporters at trade fairs and on trade missions, the organization of seminars and workshops and access to experts and consultants in such sectors as leather working, sports goods, clothing and tobacco. The Joint Commission has also looked into the use by Pakistan of the Community's generalized preferences system and the levels of voluntary restraint on sales of textiles as a result of the bilateral agreement concluded under the Multifibre Arrangement. .../... - 3 - Agreement for commercial, economic and development cooperation In July 1985, a new cooperation Agreement was signed by the Community and Pakistan. This Agreement is currently under examination by the relevant authorities of the two parties with a view to its ratification. The new Agreement supplements the 1976 Commercial Cooperation Agreement, adding two new areas of cooperation - economics and development - but also consolidating cooperation in the area of trade. Both parties intend to encourage industrial cooperation between business interests on their respective territories and the extension of bilateral arrangements for the promotion of investment. They will also facilitate contacts and exchanges of information between enterprises and economic institutions and will promote joint research programmes in areas of mutual interest. The Community will take all possible measures to intensify its financial and technical aid to Pakistan's development programmes and to promote cooperation between the developmental and financial institutions of both parties. The Community will also seek to coordinate its own development cooperation activities and those of its Member States in Pakistan. Textiles Trade in textiles between the Community and Pakistan is regulated by a bilateral Agreement negotiated in 1982 under the third Multifibre Arrangement. This agreement expires at the end of 1986. In return for an undertaking from the Community to lift restrictions and not to introduce new ones under the safeguard clauses of the GATT or the Multifibre Arrangement, Pakistan agreed to restrict its exports of a certain number of textile products to the levels laid down in the Agreement. Generalized system of preferences As a member of the Group of 77 developing countries, Pakistan enjoys preferential access under the Community's GSP. It has been among the system's main users for some years and some 60 % of Pakistan's exports enter the Community duty-free. .../... - 4 - Aid Pakistan has been a major beneficiary under the Community's food aid programme since 1968. Significant quantities of cereals (from 10.000 to 80 000 tonnes annually), butteroil (since 1973) and milk powder (since 1972) have been sent to Pakistan has been self-sufficient in cereals since 1981 and food aid since then has taken the form of butteroil and skimmed-milk powder. The above quantities do not include emergency food aid and assistance given by the Community to Afghan refugees in Pakistan. These refugees (estimated to number 2,5 - 3 million) received 110 m ECU of Community aid between 1980 and 1985. Pakistan also received 54.1 during the period 1976-1984 under the Community's programme of technical and financial assistance to non-associated developing countries. This assistance went to such projects as the Chasma irrigation project on the Indus in the Punjab. Lastly, Pakistan also benefits from the Community trade promotion programme mentioned above. Trade relations The Community is Pakistan's main trading partner, accounting in 1984 for 19 % of its imports and 21 % of the Community's foreign trade. Since the Community's enlargement in 1973, Pakistan's exports to the EEC have risen from 189 m ECU to about 671 m ECU in 1984; its imports from the Community have grown from 234 m ECU to about 1 471 m ECU over the same period. Pakistan's main exports to the Community are textiles and clothing while it imports mainly machinery and manufactures. Its main trading partners within the Community are the United Kingdom, Germany and France. Trade between the EEC and Pakistan (million ECU) 1973 1976 1979 1980 1982 1983 1984 1985 10 months EEC imports 189 269 377 446 541 585 671 757 EEC exports 234 503 806 893 1077 1307 1471 1335 Balance 45 234 429 447 536 722 799 578 Source : Eurostat * The Ecu-dollar rate of exchange fluctuates daily according as the various Community currencies which make up the ECU fluctuate against the dollar. One ECU was worth $ 1.2 in 1973, $1.37 in 1979, $1.39 in 1980, $0.98 in 1982, $O.89in 1983 and $ O.79 in 1984.