Pakistan/EU

Zardari calls for "trade not aid"

Article published on the 2009-06-17 Latest update 2009-06-17 13:19 TU

Pakistan President Asif Ali Zardari arriving for the EU summit in Brussels on June 17.
(Photo: Reuters)

Pakistani President Asif Ali Zardari has said he would prefer to have better trade agreements with the European Union rather than financial hand-outs. His comments came shortly before an historic first EU-Pakistan summit in Brussels, at which trade was expected to top the agenda.

"What I need is trade, not aid. I'm looking for MOUs (memorandums of understanding) and not IOUs and I intend to get them," he told reporters.

"I'm always hopeful. I'm a man who has walked from the gallows to the presidency."

The ultimate goal of the talks is a free trade agreement. According to a draft text, the EU will "explore" how Pakistan could benefit from its preferential tariff regime, which offers customs privileges in return for respecting principles in the areas of workers' rights and the environment.

Security in Pakistan, where government forces are battling against Taliban fighters in the Swat valley, will also figure on the agenda with the EU due to announce a package of humanitarian aid to help cope with the aftermath of the fighting.

"The Commission will announce later today that the EU will give Pakistan 20 million euros in humanitarian aid," said an official from the European Commission on Wednesday.

"The Commission will also request that member states and the European Parliament provide an additional 45 million euros from the EU's reserve fund," the official said, referring to a fund set aside for emergencies.