A3-0097/94

Resolution on economic and trade relations between the European Community and Pakistan

The European Parliament,

-having regard to its resolution of 12 March 1986 on the conclusion of the Agreement for commercial, economic and development cooperation between the European Economic Community and the Islamic Republic of Pakistan,

- having regard to the motion for a resolution by Mr De Clercq on economic and trade relations between the European Community and Pakistan (B3-0623/93),

-having regard to Rule 45 of its Rules of Procedure,

- having regard to the report of the Committee on External Economic Relations (A3-0097/94),

A.whereas economic and trade relations between the EC and Pakistan have been based since 1986 on the Trade and Cooperation Agreement which in principle expired in 1991 but has since been prolonged tacitly on an annual basis,

B.whereas Pakistan does not wish at present to conclude with the EC a new and more comprehensive agreement - a so-called third generation agreement - as has recently been negotiated between the EC and other countries of the region such as India and Sri Lanka,

C.whereas the EC and Pakistan started a political dialogue in September 1992 in order to complement and foster bilateral relations,

D.whereas respect for human rights and democratic principles are the basic tenets for cooperation between the EC and third countries,

E.whereas the Commission has been represented by a delegation in Islamabad for a long time,

1.Welcomes the recent parliamentary elections in Pakistan and hopes that the new government, in fulfilling its elected term, will be able to guarantee political stability as a precondition for the improvement of the economic situation of the whole population;

2.Points out that trade relations between the EC and Pakistan have developed well during the last 1O years, so that the EC is now Pakistan's most important trading partner;

3.Recognizes that Pakistan's trade interests with the EC focus mainly on textiles which are subject to the bilateral textile agreement allowing the EC to apply quantitative restrictions on imports from Pakistan;

4.Expects that the bilateral trade regime on textiles and clothing will be revised, based on the recent GATT agreement concluded in Marrakesh, which provides for the phasing-out of quantitative restrictions and the integration of this sector under stricter conditions;

5.Welcomes the significant unilateral reduction of its tariff rates recently implemented by Pakistan, aimed at integrating its economy better into the world markets;

6.Hopes that this reduction together with those still under negotiation between all GATT contracting parties will contribute to a significant and balanced increase of the bilateral trade flows which up to now have favoured the EC;

7.Appreciates Pakistan's positive role throughout the recently concluded GATT negotiations;

8.Stresses in this context the political and economic importance of Pakistan as a potential stabilising element in the process of transformation in the inner Asian region, notably the Islamic republics of the former USSR, particularly through the revived and enlarged Economic Cooperation Organisation (ECO);

9.Underlines, therefore, the strategic aspects of a stronger economic commitment by Community enterprises in Pakistan in the form of joint ventures or foreign direct investment;

10.Calls on the Commission to consider closer cooperation with the Pakistani communities living in the EC, particularly in the UK and Denmark, as their experience and business acumen may serve as a bridge between both sides in order to intensify economic links;

11.Points out that the EC is supplying Pakistan with technical and financial assistance, mainly in order to improve its physical and human infrastructure and thereby enhance employment conditions and encourage direct foreign investment;

12.Urges the Commission to use all possible means provided for by the trade and cooperation agreement to support Pakistan's efforts to restructure its industry in order to reduce its overdependence on textiles;

13.Recalls that Pakistan is a member of the South Asian Association for Regional Cooperation (SAARC) set up between Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka in 1985 in order to promote political dialogue and all forms of cooperation in the South Asian region;

14.Fully supports this structured and institutionalized form of cooperation which may help to build up confidence between all partners and to stabilize peace in the region;

15.Understands at the same time that, due to the current situation in the region, particularly the tragic situation in Kashmir, only limited progress can be made, especially in the field of economic cooperation; welcomes, therefore, even more the recent initiatives taken at Dhaka during the seventh SAARC summit on 10/11 April 1993 to reduce trade barriers between its member states in the form of a South Asian Preferential Trade Area (SAPTA);

16.Asks the Commission to take into account in its bilateral relations with the countries of the region every possibility to support regional cooperation;

17.Recalls that since the conclusion of the agreement with Pakistan the EC has devised more comprehensive and sophisticated approaches to all forms of cooperation with third countries, as laid down in the so-called third generation agreements concluded with several developing countries in South America as well as in southern Asia;

18.Therefore calls on both sides, given the fact that the existing agreement has in principle expired and is extended tacitly on an annual basis, to examine in the form of exploratory talks the possibility of laying down broader and - for future developments - more appropriate foundations for contractual relations between the EC and Pakistan;

19.Recognizes the Pakistani government's commitment to raise the standards of its working population and therefore asks the Commission to consider practical methods of cooperation to help improve working conditions by the exchange of expertise and experts in the field of health and safety;

20.Notes with approval the Pakistani government's indication that it is willing to undertake investigations into the carpet industry and asks the Commission to explore ways of cooperating with the Pakistani authorities to improve working conditions for children in this industry;

21.Instructs its President to forward this resolution to the Commission, the Council, the governments of the Member States and the government and parliament of Pakistan.