EU offers aid but no trade breaks

BRUSSELS (Reuters/AFP/APP) - The European Union pledged aid to Pakistan on Wednesday for hundreds of thousands of families displaced by Pakistan Army offensive on the Taliban and vowed to help Islamabad tackle the root causes of extremism but denied Pakistan the trade breaks it says will help it win the struggle.
At a first EU-Pakistan summit, the EU executive said it would provide 20 million euros ($27.72 million) to help people from the Swat valley combat zone and would ask EU states to provide a further 45 million euros from a reserve fund.
Senior officials promised to study future ways to boost commerce with the regime in Pakistan, with the ultimate aim of opening a free trade area. But a push by some EU states to offer Pakistan significant trade concessions was blocked by others concerned about the effect on their domestic industries.
A joint EU-Pakistan statement showed that while the EU offered the prospect of a long-term free trade agreement, there would be no immediate trade incentives such as eliminating tariffs on Pakistani imports such as clothes and bed linen.
“We stand by the people of Pakistan,” EU External Affairs Commissioner Benita Ferrero-Waldner told reporters.
The leaders of EU and Pakistan discussed the strengthening of EU-Pakistan partnership, the regional political situation, global issues and the world economy.
They agreed on substantial measures to strengthen their mutual engagement by initiating strategic dialogue on their common commitment to development, education, science and technology, security, counter-terrorism, strengthening of democracy, human rights and enhancement of trade.
The leaders also reaffirmed their commitment to free trade and took note of the current state of the Doha Development Agenda negotiations. They committed to reach a rapid, ambitious, balanced and comprehensive conclusion of the Doha trade round building on progress made so far. Such an agreement would bring substantial gains to the world economy and, in particular, to developing countries.
Addressing a joint Press conference along with President Asif Ali Zardari here, President of the European Commission Jose Manuel Barroso said, “EU is ready
to help Pakistan in this fight against extremism and terrorism and strengthening democracy in Pakistan.”
He said the European Union would provide 20 million Euros immediately for the rehabilitation of the displaced people of Swat and Malakand, adding that another 45 million euros would be provided in aid for Pakistan from the EU reserve fund.
Appreciating the measures taken by Pakistan under the leadership of Zardari against extremism and terrorism, the EU President assured full support for the rehabilitation of Internally Displaced Persons (IDPs).
He said, “Pakistan government is committed to fight extremism and terrorism and to ensure the supremacy of democracy.”
The President said Pakistan was seeking help and support from the international community and thanked the EU and the world for their help and support to Pakistan in this hour of need, especially for millions of IDPs.
He said the government, the army, the people and the nation were determined to fight the war.