Mushtaq Ghumman

ISLAMABAD: Pakistan is all set to sign agreements on Tariff Rate Quotas (TRQs) for rice with the European Union (EU) to ensure enhanced export of rice from Pakistan to EU including husked brown rice as agreed with the EU, well informed sources in Commerce Ministry told Business Recorder.

Recently, Ministry of Commerce apprised the Cabinet that subsequent to the decision of the United Kingdom (UK) to leave the European Union (EU) in January 2020, the EU initiated negotiations, under Article XXVIII of the GATT, for the apportionment of the Tariff Rate Quotas (TRQs) between EU-27 and the UK.

It was further informed that Article XIII of the GATT obliged the contracting parties to administer TRQs non-discriminatorily amongst all and to distribute Trade under TRQs in a way that their shares resemble closely with levels they may have obtained in the absence of such restrictions.

It was noted that the underlying principle of the negotiations for the re- apportionment was a “joint approach” developed between the EU and the UK in 2017 on how to “apportion” the quantitative commitments. These commitments were contained in the EU-28 WTO Schedule for the 142 EU agricultural, fish and industrial WTO Tariff Rate Quotas on the basis that the existing volume of each TRQ would be fully maintained in the future but would be split across two separate customs territories, namely, the EU-27 and the UK.

It was apprised that Pakistan did not have Initial Negotiation Rights (INR) inscribed in the EU Schedule CLXXV at the time of its notification in 1994 and was also not “Primary Supplier” for any product under consideration for the TRQs. EU acknowledged that Pakistan; however, had ‘substantial interest’ against some varieties of rice mentioned against TRQ Sequence 76, 77, 78,79, 80 and 81.

The Cabinet was apprised that a series of consultations with domestic stakeholders and the EU were held. Pakistan’s stance in its consultations with the EU was that it should not be left worse off in the apportioned quantities in the TRQS where it had consultation rights.

Furthermore, to ensure enhanced export of rice from Pakistan to EU, husked brown rice under tariff line 10062000, as agreed with the EU , should be reflected in the EU Schedule even if it was not part of the apportioned TRQs between the EU and the UK.

Furthermore, at the end of the formal round of consultations, Pakistan agreed to the principle and methodology of apportioning the TRQs and the arrangement had been reached, which was indicated in the form of exchange of letters that were initialled in Geneva between the EU and Pakistan in January 2021.

In view of the foregoing, and in order to finalise the agreed TRQs for rice, an agreement was to be signed between Pakistan and EU with regard to the apportionment of TRQs for rice.

It was also apprised that in a similar case, an agreement on principle and methodology of apportionment of TRQs with the UK had been concluded and signed between Pakistan and UK on July 6, 2022.

The Ministry of Commerce informed the Cabinet that in terms of the rule 8 of the Rules of Business, 1973, the Ministry had consulted the Ministry of Foreign Affairs and the Law and Justice Division.

In view of the foregoing, the following were submitted for consideration and approval of the Federal Cabinet in terms of rule 16(1)(h) of the Rules of Business 1973: (i) to approve the agreement on the principle and methodology for apportionment of TRQs between the Government of the Islamic Republic of Pakistan and the European Union; and Pakistan’s Ambassador to the EU in Brussels may be authorised to sign the Agreement; and (ii) to grant ex-post facto approval to the signing of similar agreement for apportionment of TRQs, between the Government of Pakistan and the Government of the United Kingdom of Great Britain and Northern Ireland, which also does not entail any financial implications for Government of Pakistan.

Copyright Business Recorder, 2025

Published Date: February 10, 2025