WT/L/883  
 
4 June 2013  
(13-2910)  Page: 1/4  
General Council 
24-25 July 2013  Original: English  
 
 EUROPEAN UNION - APPLICATION OF AUTONOMOUS PREFERENTIAL TREATMENT 
TO PAKISTAN 
REPORT OF THE EUROPEAN UNION UNDER THE WAIVER DECISION OF 14 FEBRUARY 20121 
The following communication, dated 23 May 2013, is  being circulated at the request of the 
delegation of the European Union. 
 
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1  INTRODUCTION 
1.1.  On 22 February 2012, the European Union (EU) was granted a waiver (WT/L/851) from its 
obligations under paragraph 1 of Article I and the provisions of Article XIII of the GATT 1994 to the 
extent necessary to permit the European Union to afford unlimited duty-free or other preferential 
tariff treatment to products originating in Pakistan, without being required to extend the same 
duty-free or preferential treatment to like products of any other member. 
1.2.  Under the terms of this waiver, the EU is required to submit to the General Council an annual 
report on the preferences and duty-free treatment afforded to products from Pakistan, including 
the extent to which such prefer ences and duty-free treatment di ffer from the EU's MFN and GSP 
concessions, with a view to facilitating the annual review provided for in paragraph 4 of Article IX 
of the WTO Agreement. This report covers the calendar year 2012. 
1.3.  The emergency autonomous trade preferences for Pakistan2 entered into force on 
15 November 2012 following their publication in the EU's Official Journal3 and will be in place until 
31 December 2013. In addition to these special measures, Pakistan benefits from preferential access to the EU market under the Generalised Scheme of Preferences scheme. 
2   AUTONOMOUS TRADE PREFERENCES 
2.1.  The autonomous trade preferences exempt certain products originating in Pakistan as listed 
in annex I of the above mentions regulation from customs duties. Certain other products originating in Pakistan as listed in Annex II of the said Regulation are subject to annual duty-free 
tariff quotas.  
3  TRADE WITH PAKISTAN 3.1.  The relationship between the EU and Paki stan builds on the Cooperation Agreement between 
the European Communities and the Islamic Repub lic of Pakistan which entered into force on 
1 September 2004. One of its main objectives is to  secure the conditions for and to promote the 
increase and development of two-way trade between the parties. 
                                               
1 WT/L/851 of 22 February 2012 – European Union pr eferences for Pakistan. Waiver Decision of 
14 February 2012 Adopted in accordance  with the Decision-Making Procedures under Articles IX and XII of the 
WTO Agreement agreed by the General Council on 15 November 1995 (WT/L/93). 
2 Regulation (EU No 1029/2012 of the European Parliament and of the Council of 25 October 2012 
introducing emergency autonomous trade preferences for Pakistan.  
3 OJ L 316 of 14.11.2012, p. 43 WT/L/883 
 
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  3.2.  In addition, Pakistan currently benefits from the EU's Generalised System of Preferences 
(GSP) provided for in Council Regulation (EC) No 732/2008 of 22 July 2008.  Under this scheme Pakistan benefits from preferential access to the ma rket of the EU which allows Pakistan to export 
to the EU more than 3,000 tariff lines duty free, while enjoying reduced duties on another 3,000 
tariff lines.  
3.3.  The EU remains Pakistan's largest trading partner, receiving almost 30% of Pakistan's 
exports - worth almost € 3 billion.  Pakistan's trade with the EU is mainly composed of textiles, 
which account for over 70% of the total Pakistani exports to the EU, followed by leather products, 
which account for 13% of the total Pakistani exports.  
3.4.  The export opportunities under the waiver should support Pakistan’ economy to recover from 
the consequences of the dramatic events of su mmer 2011 through increased export opportunities 
limited in time and targeted at stimulating Pakistan exports to its main market. 
3.5.  Statistical annexes are provided to present a detailed description of the EU trade relations 
with the Pakistan for the year 2012. 
 
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 WT/L/883 
 
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  ANNEX: PAKISTAN 
Population in Mio (2011) 175.3  
Area in 1000skm  796.1  
Gross Domestic Product in BN € (2011) 151.3  
GDP Per Capita in euro (2011) 862.9  
EU 27 TRADE WITH PAKISTAN 
 IMPORTS 
Rank 2012: 51 EXPORTS 
Rank 2012: 48 TRADE BALANCE 
Year Value 
(Mio €) Share of total 
EU imports Value 
(Mio €) Share of total 
EU exports Value (Mio €) 
2011 4,623 0.3 3,737 0.2 -886 
2012 4,073 0.2 4,101 0.2 28 
MAIN PRODUCTS 2012 
EU 27 Imports EU 27 Exports 
SITC Rev.3 
Product 
Groups Value 
(Mio €) Share by 
products 
(%) Share 
of 
totals 
(%) SITC Rev.3 
Product 
Groups Value 
(Mio €) Share by 
products 
(%) Share 
of 
totals 
(%) Balance 
TOTAL 4,073.0 100.0 0.2 TOTAL 4,101.0 100.0 0.2 28.0  
Primary 
products 443.0 10.9 0.1  Primary 
products 895.0  21.8 0.3 452.0  
Agricultural 
products 311.0 7.6 0.2 Agricultural 
products 353.0 8.6 0.3 42.0  
Fuels and 
Mining Products 132.0 3.3 0.0 Fuels and 
Mining Products 541.0 13.2 0.3 409.0
 
Manufactures 3,604.0 88.5 0.4  Manufactures 2,841.0  69.3 0.2 -763.0  
Iron and steel 1.0 0.0 0.0 Iron and steel 190.0 4.6 0.4 189.0  
Chemicals 61.0 1.5 0.0 Chemicals 740.0 18.0 0.3 679.0  
Other semi-
manufactures 128.0 3.1 0.2 Other semi-
manufactures 204.0 5.0 0.2 76.0  
Machinery and 
transport equipment 65.0 1.6 0.0 Machinery and 
transport equipment 1,411.0 34.4 0.2 1346.0
 
Textiles 1,525.0 37.4 7.2 Textiles 25.0 0.6 0.1 -1,500.0  
Clothing 1.513.0 37.1 2.2 Clothing 6.0 0.1 0.0 -1,507.0  WT/L/883 
 
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  EU 27 Imports EU 27 Exports 
SITC Rev.3 
Product 
Groups Value 
(Mio €) Share by 
products 
(%) Share 
of 
totals 
(%) SITC Rev.3 
Product 
Groups Value 
(Mio €) Share by 
products 
(%) Share 
of 
totals 
(%) Balance 
Other 
manufactures 312.0 7.7 0.2  Other 
manufactures 254.0  6.2 0.2 -58.0  
Other products 18.0 0.4 0.0 Other products 61.0 1.5 0.1 43.0  
 
World excluding Intra-EU trade an d European Union: 27 members. 
Source : Eurostat (Comext), FMI. 
 
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