NEW DELHI : Pakistan has dragged the European Union to the World Trade Organisation (WTO) contesting imposition of countervailing measures by the EU on imports of certain polyethylene terephthalate (PET) from the country, hitting the interests of Pakistani industry.
PET is used in synthetic fibres and in beverage, food and other liquid containers.
“Pakistan has notified the WTO Secretariat of a request for consultations with the European Union regarding the imposition of countervailing measures by the EU on imports of certain polyethylene terephthalate (PET) from Pakistan and regarding certain aspects of the investigation underlying those measures,” the WTO said in worldwide release. According to Pakistan, the EU appears to have acted inconsistently with several articles of the Subsidies and Countervailing Measures Agreement in determining that Pakistan’s tax law and other schemes and programmes in certain cases constitute a subsidy that is contingent upon export performance. Under the WTO dispensation, the request for consultations formally initiates a dispute in the multilateral trade forum. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation.
After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.
(AGENCIES)
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