Pakistan is expected to be out of the drug window of the European Union’s generalised system of preferences (GSP) scheme with a World Trade Organisation (WTO) panel ruling against the provisions of the GSP. Though India will benefit from the ruling, Brussels is to determine whether or not Pakistani textile sector has graduated out of the scheme by issuing a notice for the purpose, say commerce and textiles ministry officials.

They, however, aver that the exercise of issuing a notice to Islamabad will take some time, thereby delaying the benefits flowing from the panel’s recent ruling.

Brussels had taken a “unilateral” decision to extend duty-free concession to the Pakistani textile industry under the drug window of its three-year GSP scheme from January 1, 2002.

The panel, however, had upheld New Delhi’s contention that the decision had adversely affected India’s textile exports to the Union.

To support their viewpoint, officials said the utilisation of quotas by the Pakistani textile sector had increased in 2002 over 2001— from 72.43 per cent to 86.07 per cent (knitted shirts), from 21 per cent to 39.71 per cent (blouses) and from 18.69 per cent to 36.97 per cent (gent’s shirts).

Officials also pointed out that the compounded annual growth of Pakistani textile exports to the EU had increased during 2002, while that of India had declined.