The WTO Council for Trade in Goods (on ist meeting on 30 November 2010) did not conclude in favour of the EU proposal for a waiver to Pakistan to give duty-free access to 75 goods into the European market, among which 65 textile and clothing items, as part of its flood relief package.

Several developing countries  - including India, Bangladesh, Peru, Vietnam and Sri Lanka - criticized the European Union for including majority of textile items in its special Pakistan “flood relief” program, saying that doing so would cause grave “systemic” concerns in the multilateral trading system, notably MFN (WTO Most Favour Nation provision) obligations.

India, supported by Peru and Sri-Lanka, asked for more consultations before the WTO considers the EU waiver. According to Indian Press - India Textile industry made strong representation against the EU proposal as it will only re-distribute trade among developing countries exporting to the EU in favour of Pakistan. Bangladesh - a major developing country textile exporter - said it would support the waiver as long as Brussels follows through on a compensatory mechanism to provide relief for others affected by the tariff waiver.

WTO Committee Chairman concluded by saying it would hold more bilateral consultations before taking up the waiver request. On the other side, according to Commission’s sources, the EU itself will now (continue to) proceed through bilateral contacts in order to seek approval on its waiver request.(…)

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