CPGS is a registered non-profit entity under the Societies Registration Act XXI of 1860, Pakistan.

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2 CPGS is an independent, non-partisan and not-for-profit think tank with a vision to innovate future prospects for peace and security through intellectual discourse, and contribute to sustainable social, political and economic development. CPGS is a registered non-profit entity under the Societies Registration Act XXI of 1860, Pakistan. Copyright Centre for Pakistan and Gulf Studies (CPGS) All rights reserved Printed in Pakistan Published March 2014 Any part of this publication cannot be used or cited without a clear reference to this publication and CPGS Office 101, Silver Oaks, F-10, Islamabad, Pakistan PO Box: 1486 Islamabad T: ( ) F: ( ) E: info@cpakgulf.org W:

3 1 Foreign Policy Roundtable Series Pakistan European Union relations: prospects and challenges Roundtable Report V Introduction The Centre for Pakistan and Gulf Studies (CPGS) is a non-partisan think tank established with a vision to innovate future prospects for peace and security in the region and beyond through intellectual discourse and contribute to sustainable social, political and economic development. To this end, CPGS has organized this roundtable discussion under the initiative the Centre has embarked upon, i.e., CPGS Foreign Policy Roundtable Series, with an aim to review the foreign policy of Pakistan towards its partner states and the major powers of the World. Pakistan- China Relations Prospects & Challenges was the fourth roundtable of the series; the first was on Pakistan-U.S. Relations: Convergences and Divergences held in November 2013, the second was on Pakistan-Russia Relations: Prospects and Challenges, held in December 2013, and the third was on Pakistan-Afghanistan Relations U.S. Drawdown and its Implications for Pakistan, held in January 2014.

4 Background Pakistan and the European Union s relations established in 1962 are 52 years old. The first cooperation which was initiated between the EU and Pakistan was in It was followed by a formal Commercial Cooperation Agreement in However, the 2004 Cooperation Agreement paved the way for closer relations. Since the start of this cooperation, the Commission has committed more than 500 million to various projects and programmes in Pakistan. Currently, there are 48 bilateral and multilateral treaties between the EU and Pakistan, of which 47 have entered into force. There are also over 86 projects currently in progress, covering a wide range of sectors. The relationship is moving from what has traditionally been a more tradeoriented relationship to a political and strategic one. Recent granting of the GSP status, and the visit of a four-member European Organization for Nuclear Research (CERN) team to discuss Pakistan s associate membership application and plans with the Higher Education Commission (HEC) to develop Pakistan s research potential are positive steps in furthering cooperation. Total assistance for Pakistan by the EU and its Member States for the time amounts to 2,458 billion, which represents around 30 percent of the total annual development assistance to the country. The EU provided 398 million ( ) though its budget to Pakistan (via the Development Cooperation Instrument (DCI). Activities under this Instrument focus on rural development/natural resource management and on education/human resources management. The EU has also worked extensively to provide emergency aid and relief to victims of natural disasters in Pakistan via ECHO European Community Humanitarian Office. The total amount of aid received from ECHO since 2009 has been 313million. The EU is Pakistan s single largest trading partner, accounting for 22 per cent of Pakistan s external trade. In 2012, Pakistan s total trade with EU amounted to 2

5 8.2 billion. Pakistan s imports from EU mainly consist of textiles, medical equipment and leather products; while EU s exports to Pakistan consist of mechanical and electrical equipment, and chemical and pharmaceutical products. On December 12, 2013, the European Union (EU) further granted Generalised System of Preferences (GSP) Plus status to Pakistan with an impressive count of 406 votes, granting Pakistani products duty-free access to the European market. The GSP Plus status will allow almost 20 per cent of Pakistani exports to enter the EU market at zero tariff and 70 per cent at preferential rates. 3

6 Participants The discussion was attended by renowned scholars, practitioners and members of the CPGS Team. The complete list of participants is as follows: Chair Moderator Speakers Participants Senator Sehar Kamran (T.I.) Prof. Dr Tahir Amin S Mr. Pierre Mayaudon Mr. Mr. Shahbaz Hussain Ambassador (R) Akram Zaki Mr Shahbaz Hussain Lt, Gen. (R.) Owais Dr Mavara Inayat Dr Noman Sattar Mr Aqab Malik Mr Fawad Haider Ms Nadine Gill Dr Hartmut Elsenhans Dr Mansur Khan Mr Nasir Hafeez Ms Cynthia Park Ms Sumeera Riaz Mr Waqas-ur-Rehman Maj (R.) Farrukh James Mr Ghani Jafar Mr Majid Mehmood Mr Saqib Mehmood Ms Sara Batool Ms Adeela Bahar Khan Mr Ikram Ullah Khan Mr M. Suleman Shahid 4

7 Ms Sundus Ahmad Mr M. Rizwan *Various Research Scholars, HEC Scholars, M.Phil and PhD Students also attended the event. 5

8 Key Questions i. What is the nature of Pakistan-EU relationship? ii. iii. What are the convergences and divergences between the EU and Pakistan? What is the potential for future development of relations between Pakistan and the EU? Points Raised Pakistan s foreign policy starts in New Delhi and ends in Washington as goes the old adage. Reactivation of the Europe-Pakistan Friendship Forum could be a step forward towards more systematic relations. Nationalism as a concept that has emerged from Europe and spread across the globe now, supranational integration has also emerged from Europe. Can this be a model for the rest of the world as well? Pakistan and the EU have a unique relationship. Pakistan attaches great importance to EU member states. The relationship has traditionally been more trade-oriented, but increasingly includes political cooperation as well. Pakistan and the EU have increased collaboration in the context of the War on Terror, given their common goals for regional stability and security. The Third Generation Agreement has been the basis for expansion of relations between the two, under which two high-level summits have been held and four sub-groups established. So, efforts have been made to institutionalize the relations at the summit level. Strategic orientation of relationship with EU, particularly in the fields of civil-nuclear technology and energy, are vital for Pakistan. There is a need to explore this area further for cooperation. To this end, an Institutionalized nuclear dialogue with Europe is 6

9 required. It is very important that EU should help Pakistan in gaining access to Nuclear Suppliers Group. Increasing the employment opportunities for Pakistani youth in Europe is an area where we need to work. The issue of illegal Pakistani migrants in various European countries is a grey area, though efforts have been made for readmission of illegal migrants in the form of recently signed agreement with the EU; however, there is a need to further substantiate these efforts. EU is concerned over the situation of human rights in Pakistan; however, Pakistan has made tremendous efforts in this regard. Currently, Pakistan is signatory to 29 international conventions in this regard. As for the death penalty concerns of the European Union, it is important to note that after the Presidential moratorium given by former President Asif Ali Zardari, there has been no execution since 2008 in Pakistan. Nonetheless, the status of minorities and misuse of blasphemy law in Pakistan is a point of concern for Europe. Pakistan has the greatest number of troops in UN peacekeeping forces. CSDP-common security and defence policy. There are five EU-led military operations going on in the world. EU has announced to launch a big operation in Central African Republic. In 2010, the EU carried out the largest humanitarian relief operation in one country ever. However, these efforts are not being projected in Pakistani society. GSP+ status given to Pakistan is an important landmark in boosting trade relations between the EU and Pakistan. There are no hidden agendas and elements of suspicion and mistrust, so Pakistan and EU are approaching towards a better relationship. Pakistan has adopted 16 targets and 41 indicators against which progress towards achieving the Eight Goals of the MDG s is measured. Time series data available for 33 of these indicators reveals that Pakistan is on track to achieve the targets on nine indicators, whereas its progress on 24 indicators is off-track. Low progress in achieving the MDGs. 7

10 Is it possible to achieve EU type of integration in South Asia? We (Pakistan and India) are still in the warring mode, the road towards better cooperation and interconnectedness goes through resolution of disputes. Those who advise us of regional integration should also play a role in resolution of disputes. There immigration issues: Pakistan and EU should aggressively move towards an institutionalized solution. The big problems of Pakistan are terrorism and the energy crisis. In these sectors, the EU can help Pakistan, particularly in the education sector. Poverty elevation is also a big problem of Pakistan. The EU and Pakistan can cooperate in the field of education, because education is a key factor that leads the country toward awareness about health, security and peace. In Pakistan, the literacy rate is not satisfactory. In this context, EU can help Pakistan for quality education. Moreover, gender equality is another area where Pakistan and the EU can work together. In Pakistan-U.S. relations, two main things are dominant; one is counter-terrorism and the second is non-proliferation. Americans may not concentrate on other issues. The EU can fill this gap through greater economic cooperation in the education sector, on the Afghanistan issue, anti-narcotics, human rights, democracy. However, Pakistan should not see the EU as a power balancer. Political relations between the EU and Pakistan should be increased so that democracy could be strengthened in Pakistan. The Kashmir issue is a basic problem between India and Pakistan; Pakistan has been taking many initiatives to resolve this issue, but due to the lack of interest from the Indian side, it has remained unresolved so far. Until or unless this issue is resolved, stability and integration in the region cannot be achieved. The EU should play its role to resolve this issue. The major issue for Pakistan is Afghanistan after In this context, the EU should support Pakistan s position in the international fora. 8

11 Democratization and free market approach is the element the establishment of the EU. Free market economy is protected by different countries. Great Britain protected it for a hundred and fifty year or so, like the USA did. The European Union states gradually shifted from monarchy to the democratization process not as a whole and at once. This kind of approach only can be implemented after establishing a strong domestic economic system; otherwise, if you are privatizing the institutions, that would be easy for big banks and multinational companies to come in and exploit the country s weak economy to a certain extent. The prerequisites for democratization are high living standards and high education; and, unfortunately, Pakistan is lacking on both counts. The EU is a global model which nations can follow. Political mindset, demography, education and awareness level is different here in South Asia. The environment in South Asia does not permit such integration in the near future. The security environment is much different in our region. Pakistan-EU have trade and economic cooperation, but there could be another area as well, that is, defence cooperation. Even we have a history of Regional Cooperation for Development (RCD) between Iran, Pakistan and Turkey which has been revived and enlarged with the inclusion of the Central Asian Republics as also Afghanistan in the form of the Economic Cooperation Organization (ECO). So, if we develop a relationship between Iran and Turkey and further extend it to the EU, this corridor will provide the grounds for cooperation and development. Rather than concentrating on a region which is highly conflicting, contesting and problematic; if we start pushing some efforts on the region which has more peaceful and cooperative, that would be helpful for bridging the gaps. Conclusion Pakistan-EU relations are unique in the sense that there is a wide range of areas in which the two sides have a convergence. The EU is the largest trading partner of Pakistan. However, there is a need to further increase political, economic and strategic cooperation. 9

12 Recommendations 1. For a comprehensive relationship, we need to focus on a variety of areas. 2. Prioritise EU relations and adhere to timelines on agreements and proposals. Possible cooperation in education, energy and health; but sectors should be prioritised in terms of short- mid- and long-term goals. 3. The EU should not look at Pakistan through the prism of Afghanistan. Balance of power in the region is very important, and regional issues need to be resolved in order to achieve that, which cannot be done if India is prioritised via exceptions and concessions, particularly with regards to their nuclear programme. 4. Terrorism and poverty are the core issues in Pakistan. EU s help in this regard via educational endeavours, etc., can form the basis for bilateral relations in the future. 5. We must take care not to overburden the EU with our issues, and work collectively to improve relations. 6. It is important to understand the nature and the limitations of the EU, in terms of how it functions and the areas where it can realistically help. 7. Post-2014 Afghanistan is the biggest immediate concern. EU should understand and support Pakistan. 8. The EU and Pakistan should play a strong role in stabilising Afghanistan. 9. Deep introspection of national trauma over the last ten years and not just blame others. Social impact needs to be understood, and responsibility taken for one s own actions. 10

13 CPGS Vision Innovate future prospects for peace and security in the region and beyond through intellectual discourse and contribute in sustainable social, political and economic development. About the Centre The Centre for Pakistan and Gulf Studies (CPGS) is a non-partisan platform established to undertake studies in policy research, advocacy and consultancy to enhance understanding and relations in diverse fields between Pakistan and the Gulf countries. We regularly conduct seminars, workshops, roundtables and conferences with dignitaries, academics and experts from every walk of life, in order to actively promote regional harmony, global peace, security and stability by making substantive intellectual, academic and diplomatic contributions. The Centre aims to harness the immense potential for increasing cooperation in the region to attain peace, security and economic development and to asses emerging trends in regional policies and devise strategies for possible future challenges. Operational Framework & Objectives Promote regional peace and harmony through integrated and comprehensive understanding of issues between peoples, governments and other entities; Strengthen strategic, political, economic and social cooperation among countries of the region and beyond; Present view point of Pakistan and the Gulf countries to the rest of the world through academic engagements, discussion and dialogue among all stakeholders for sustainable development; Identify opportunities and areas of common interest for potential cooperation between Pakistan and the countries of the Gulf region at all levels including both public and private sector; i

14 Contribute towards development of ideological and social ideas to promote tolerance and co-existence for building multicultural human society based on shared ideas and common goals; Conduct Research and compile reports for the governments and private entities to explore alternative options for efficient management and resolution of regional and international issues; Organize workshops and events to develop strong working relationship between academia and practitioners; Collaborate with the other research institutions and Think Tanks for achieving the core objectives. Activities and Services Organize periodic seminars, workshops, lectures and other events which would bring together leaders, academics, practitioners and other stakeholders, to study and discuss issues of importance for the overall good of the society; Map out future policy options by analysing existing trends and emerging scenarios; Compile, edit and publish (print and electronic) relevant information, data, commentaries and analysis regularly; Offer training and academic services for Skill Development and Strategic analysis; Provide dedicated Consultancy and help create conducive environment for development of our society; All such other activities which help in achieving core objectives of the Centre and its programs, projects and initiatives; Prepare annual report of all activities for interested parties and stakeholders. ii

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