Disaster-driven trade liberalization

EU members are thinking about helping Pakistan’s economy by liberalizing tariffs on some of its imports:

The most realistic option, according to some diplomats, would be for the EU to identify a list of products beneficial to Pakistan and then unilaterally reduce the so-called “most-favoured nation” tariffs it charges trading partners. Depending on the products and the tariff reductions, such a move could result in €100m to €150m in additional annual exports for Pakistan, according to preliminary calculations.

One challenge in devising a list, say people familiar with the matter, would be to help Pakistani exporters without providing unintended benefits to their Chinese rivals.

It’d be nice to see “preferential” liberalization come via MFN tariff reductions.

[HT: Seb]

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  1. Pingback: How will the EU grant Pakistan temporary trade preferences? « Trade Diversion

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