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Thursday, October 18, 2001

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EU bonanza for Pakistan

By Batuk Gathani

BRUSSELS, OCT. 17. Indian observers in major European Union capitals are ``amazed and even embarrassed'' by the speed and alacrity with which Pakistan is being ``rewarded'' for ``services rendered'' to western allies in the war against Afghanistan, ostensibly to topple the Taliban regime and facilitate capture of Osama bin Laden ``dead or alive''.

The antagonism of the West towards the military regime in Pakistan has suddenly ``evaporated'' by Gen. Pervez Musharaff's support for efforts to bomb and destabilise the Taliban regime.

In latest turn of events Pakistan is being generously rewarded with an impressive and liberal trade package from the European Commission, worth about $1,350 million. The commission officials make no secret that this was a reward for Pakistan's support in the war against terrorism in neighbouring Afghanistan. European Union officials say the latest package was aimed at helping Pakistan's economy and ``bolstering'' Gen. Musharraf's Government in the face of growing protests against the war on Afghanistan.

As Mr. Pascal Lamy, European Commissioner (Minister) for Trade put it: ``Trade is a weapon for peace. Through trade and the fostering of greater economic ties, the European Union can help alleviate in some measure Pakistan's current difficulties.''

Under the latest round of trade concessions there would be an increase by 15 per cent until 2004, the amount of textiles and clothing that Pakistan is allowed to export to the European Union. The EU will also remove all tariffs on clothing exports, which account for some 60 per cent of Pakistan's exports to the EU and 75 to 80 per cent of its overseas trade.

The European Commission has taken the current measures under a special programme that allows the EU to help countries fighting the drug trade. According to the commission's estimates, Pakistan accounts for euro 1,300 million worth of drug trade which is smuggled from Afghanistan by the Taliban regime. The latest proposals have to be approved by the 15 EU member governments and this is seen as a test case for the balance between geopolitics and domestic lobbying. The EU recognises that Pakistan's close ties with the Taliban regime and its long border with Afghanistan give Pakistan a crucial role in the current military campaign launched by western powers.

Pakistan has been offered an aid programme worth some $500 million to cope with the crises posed by the arrival of some five to six million Afghan refugees. Last night, the U.S. Secretary of State said he was returning to Washington with requests from Pakistan for relief from a staggering $37,000 million public debt. Pakistan has argued that despite recent `hiccups' in its relations with the U.S., it has served as a key American ally at important moments. In 1971, it paved the way for American officials' meeting with Chinese leaders, which culminated into President Nixon's summit with Chairman Mao-Tse- Tung. In the 1980s Pakistan served as a staging ground for U.S.- backed uprising against Soviet forces in Afghanistan.

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