Pakistan is set to formalize an agreement with the European Union (EU) on the apportionment of Tariff Rate Quotas (TRQs) for rice following the UK’s departure from the EU.
This move aims to enhance Pakistan’s rice exports and maintain market access in the post-Brexit scenario.
The agreement, which follows extensive consultations with domestic stakeholders and the EU, will allow Pakistan to continue and potentially expand its rice exports. Commerce ministry officials revealed that Pakistan’s rice exports to both the EU and the UK are already exceeding current quotas, making the agreement a procedural step.
The government, through its cabinet, approved the signing of the agreement with the EU-27 post-Brexit. This follows negotiations under Article XXVIII of the General Agreement on Tariffs and Trade (GATT) after the UK left the EU in January 2020. The EU had initiated these discussions to redistribute the TRQs between the EU-27 and the UK, ensuring that trade shares reflect what they would have been without Brexit.
Under the agreement, Pakistan will benefit from several rice varieties listed under TRQ Sequence 76, 77, 78, 79, 80, and 81, with the country’s rice industry receiving an expanded market share. Additionally, husked brown rice under tariff line 10062000 was included in the EU Schedule to enhance rice exports.
The agreement’s methodology and principles were agreed upon after consultations and were formalized through an exchange of letters between Pakistan and the EU in January 2021. Pakistan has already signed a similar agreement with the UK on TRQ apportionment in July 2022.
As per the Rules of Business, 1973, the Ministry of Commerce carried out necessary consultations with the Ministry of Foreign Affairs and the Law and Justice Division. The federal cabinet has now granted approval to formalize the agreement and authorized Pakistan’s Ambassador to the EU in Brussels to sign it.
This agreement is expected to further enhance Pakistan’s rice export prospects to the EU, ensuring continued access to the market and expanding trade opportunities for the country’s agricultural sector.
