ISLAMABAD: The World Trade Organization (WTO) has decided in Pakistan’s favour and held measures adopted by the European Commission on export of Polyethylene Terephthalate (PET), a chemical used in the making of mineral water bottles, against WTO law and rules.
The WTO categorically ruled that measures applied by European Commission on Pakistani PET were inconsistent with the Subsidies and Countervailing Measures Agreement (SCM) of the WTO.
This is being seen as a big diplomatic success of Pakistan at the multilateral forum in Geneva by trade experts. The report of the WTO adjudicating panel was released in Geneva last evening.
The European Union way back in 2010 had imposed a crippling countervailing duty on Pakistan’s PET. As per conservative estimates, the trade protection measures imposed by EU seven years ago caused a loss of approximately 300 million Euros to Pakistan’s nascent chemical industry.
Pakistan then filed a case of unfair trade practices in March 2015, against the 28-country European Commission.
International Trade Law experts have labelled it as a success of the government’s economic diplomacy, which will have far-reaching effects in protecting the country’s exports globally.
The PET popularly also called Resin is a bottle-grade polyester chip, which is used in production of disposable PET bottles for mineral water beverages.
Minister for Commerce Khurram Dastgir Khan appreciated the efforts of officials who contested the case at the international dispute forum over the last two years.
He hoped that the findings of the WTO panel will boost Pakistan’s exports and also help the government ward off future trade restrictions being based on similar trade remedy practices.