Moving EU-Pakistan Relations Beyond Words

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In terms o rhetoric, the advancemento relations between Pakistan and

the European Union appears impres-sive. Recent statements on Pakistanby EU oreign ministers underlineeorts to build a strong long-termpartnership and indicate ull Euro-pean support or democracy in thecountry. Pakistani leaders, includingPrime Minister Yusu Raza Gilani,have started to talk hopeully aboutorging a strategic relationship withBrussels.

But or all the wordy communiquésand press statements issued aerEU-Pakistan meetings, reerring tocommon values and the wide rangeo areas where the two sides intendon cooperating, the EU’s relationshipwith Pakistan remains lackluster anduninspiring. With the exception o Britain, EU member states have yet toully acknowledge Pakistan’s strategicimportance and seek approaches toits complex mix o security, gover-

nance, and economic challenges.Most EU governments still viewPakistan as a sideshow to their mili-tary involvement in Aghanistan, anapproach that naturally disappointsIslamabad. European policymakersbetray a poor understanding o Pakistan’s regional signicance andthe intricacies o the battles withinIslam being played out in Pakistan ona regular basis between Wahhabismand Susm, Shias and Sunnis,

Moving EU-Pakistan Relations Beyond Words

by Shada Islam

August 26, 2011

Asia Program

modernists and conservatives, withimportant repercussions across the

Muslim world. Te absence o signi-cant European military support couldbe oset by strong economic ties –the EU is Pakistan’s largest tradingpartner – but that has not yet trans-lated into signicant political inu-ence. As a result, the EU continues topunch below its weight in Pakistan,remaining a marginal political playerin the country with little leverage vis-à-vis Pakistan’s civilian leadershipor its powerul military and security

establishment.

Pakistan’s outlook toward Europealso needs a shake-up. Focused on its volatile relationship with the UnitedStates, Pakistan has yet to concentrateits attention on the EU, which is seenas little more than a lucrative marketor Pakistani exports. Europe’semergency aid eorts ollowing the2010 oods were certainly welcomed,but Pakistani policymakers appear

too ocused on Washington to ully appreciate what Europe can oerin order to advance economic andpolitical reorm. Ironically, althoughIslamabad is envious o the much-wider scope and content o EU-Indiarelations, Pakistan and India broadly share the view o Europe as aneconomic superpower but a politicaldwar.

Summary: Despite widespread

acknowledgement that a long-

term partnership between

Pakistan and the European Union

is desirable, neither Islamabad

nor Brussels has invested enough

in engaging one another. Both

parties have compelling commer-

cial, security, and diplomatic

reasons to deepen and broaden

their relations, but, despite a

series of summits, each has

emerged disappointed with

the other’s capacity to deliver,

including on trade issues that

form the backbone of the rela-

tionship. Although policy coor-

dination remains a challenge,

Europe has key assets that it can

leverage, including its reputa-

tion for supporting civil societygroups, development initiatives,

and democratic institutions. As

Pakistan struggles, the EU can

become an important niche

player, prioritizing its soft power

capacities to help a country in

transition modernize and reform

its economy, consolidate political

institutions, and strengthen the

rule of law.



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A Promising Partnership

Te absence o stronger engagement between Pakistan andthe European Union is unortunate. A ractured or inca-pacitated Pakistan is a threat to European security interests.Stability in Aghanistan and peace in South Asia are condi-tional on eorts to curb the power and inuence o mili-tant extremist groups in the country. A stronger EU eortto stabilize Pakistan will do much to determine Europe’scredibility as an international security actor, enhanceits visibility and image in Asia, and exercise its ability toleverage its non-military so power tools such as aid, trade,and diplomacy. Finally, an EU ailure to respond eectively

and rapidly to important U.S. concerns about Pakistan willnegatively impact eorts to cra a stronger transatlanticsecurity dialogue.

Pakistan also has an interest in deepening and wideningties with Europe. Although the United States will remainthe dominant oreign player in Pakistan, and China is seen

as the country’s “all-weather riend,” Islamabad’s ailure tocultivate closer relations with Europe has meant it gets a lesssympathetic hearing on crucial trade questions (includingtari concessions), is not consulted regularly on regionalissues such as Aghanistan, and is yet to be recognized – likeIndia and China – as a strategic partner. Te EU, with its

The EU, with its experience

of encouraging governance

reform, promoting civil society,

and spearheading economic

modernization in Central and

Eastern Europe, has much to offer

Islamabad’s embattled civilian

leaders in these areas

experience o encouraging governance reorm, promoting

civil society, and spearheading economic modernization inCentral and Eastern Europe, has much to oer Islamabad’sembattled civilian leaders in these areas.

Tere is some cause or optimism. Encouraged by Wash-ington to upgrade relations with Islamabad, senior EUofcials have held two summit meetings with Pakistanileaders, with a third high-level encounter being planned ornext year. In a bid to set relations on a new trajectory, seniorofcials in Brussels are also hoping to organize an early meeting between EU High Representative Catherine Ashtonand Hina Rabbani Khar, Pakistan’s new oreign minister.

Te EU has donated millions o euros in humanitarianaid to Pakistan’s post-ood rebuilding eort. Funding,including grants rom the European Investment Bank,will contribute a total o around €485 million to Pakistanbetween 2009 and 2013, and humanitarian assistance,including contributions rom member states, is valued at€423 million. And, or the last ew months, EU ofcials havemade sincere eorts to secure World rade Organizationapproval or unilateral tari concessions to Pakistan’s textileexports.

Maturation and Frustration

Te departure rom the political scene o ormer PresidentPervez Musharra in 2008 and the election o a democraticgovernment in the country have put EU-Pakistan relationson a stronger ooting. As the relationship has matured,however, so have expectations, and the EU languageregarding Pakistan has become tougher over the years. TeEU seeks to combine support or Pakistan’s civilian leaderswith demands or better governance, scal reorm, andtougher counter-terrorism measures. Pakistan, meanwhile,has used its high-level meetings with the EU to press orbetter market access. Each side has been disappointed withthe other’s capacity to deliver.

Te rst EU-Pakistan Summit – held in Brussels on June17, 2009 – saw both sides promising to engage in a stra-tegic dialogue as partners but the EU also warning that“terrorism, extremism, and militancy represent seriousthreats to international peace and security and should beeliminated.” Te emphasis at the summit, in which Pakistan



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President Asi Ali Zardari participated, was on working

together on an integrated long-term strategy, includingsocio-economic development, civilian law enorcementstructures, and the rule o law. Te EU also stressed that itwould help improve Pakistan’s counter-terrorism capabili-ties, notably in the elds o law enorcement, police reorm,and criminal justice.

Te second summit, held in June 2010, was attended by Prime Minister Yousu Raza Gilani and emphasized a“partnership or peace and development,” constituting adiscussion o regional and global security issues, the respector human rights, economic and trade cooperation, the

provision o humanitarian assistance, and cooperation tourther strengthen Pakistan’s democratic government andinstitutions. Te meeting promised that a ve-year engage-ment plan outlining specic targets or joint action wouldbe prepared and regular meetings would be organizedbetween the Pakistani oreign minister and the EU highrepresentative. However, the third summit -- in July 2011-- saw evidence o Europe’s growing impatience with Paki-stan’s civilian leaders. In a statement, the European Councilwarned that while Europe was ready to pursue coopera-tion in a number o areas, it awaited Pakistani reactions toits concerns on security, human rights, the protection o

minorities, and reedom o religion and speech. It added:“Without ar-reaching structural, economic, and scalreorms, EU assistance cannot be ully eective.”

While such statements and declarations o intent make goodheadlines, they do not amount to a coherent, well-thought-out strategic vision or the uture. Te EU complains thatIslamabad has yet to come up with a credible blueprintor cooperation as promised under the ve-year engage-ment plan. Meanwhile, Pakistan believes that Brussels isnot doing enough even in the trade sector, the backboneo EU-Pakistan ties. Te EU is Pakistan’s largest trading

partner, with EU imports – mainly o textiles and clothing– currently valued at about €3.5 billion per year. But traderelations are uneasy: a spate o EU anti-dumping investiga-tions, and the removal o Pakistan rom the EU’s specialduty-ree scheme or developing countries (GSP+) or nothaving signed certain labor rights conventions and ailingto meet the regime’s technical standards, coupled withBrussels’ reluctance to start negotiations on a ree-tradeagreement with Islamabad, have strained the relationship.

An EU proposal to grant unilateral tari-ree concessionsto Pakistani exports ollowing the 2010 oods is still stuck

in the World rade Organization, acing opposition romIndia, Tailand, and Bangladesh.

A Way Forward for Europe

One reason or the EU’s ailure to orge a strong partnershipwith Pakistan is the lack o policy coordination and coher-ence between the EU and its member states. A commonEuropean policy also requires intense and sustained policy consultations among several EU departments – includingthe new European External Action Service, headed by

Ashton – as well as European Commission directoratesdealing with humanitarian operations, development policy,trade, budgetary aairs, and climate change. Proposalsrom the EU trade directorate to grant Pakistan unilateraltari concessions, or example, ran into strong oppositionrom European textile manuacturers, the Commissiondirectorate or industry, and EU member states such asPortugal, Poland, and Italy. For its part, the EU argues thatregulatory barriers continue to hold Pakistan back romdeveloping its ull trade potential. Te high costs o doingbusiness, complex regulations, trade regimes, and inra-structure bottlenecks all have detrimental eects on trade

and growth, according to EU ofcials.

Nevertheless, Europe has key assets that it can leveragein Pakistan. European countries are regarded by many inPakistan with much less hostility than the United States,whose reputation has been tarnished by public outrage atU.S. drone attacks in the tribal areas, Washington’s rela-tionship with the army, and the Raymond Davis aair,among other developments. he EU has also built its

While statements and declarations

of intent make good headlines,

they do not amount to a coherent,

well-thought-out strategic vision

for the future



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About the Author

Shada Islam is head o the Asia Programme at Friends o Europe and

writes extensively on EU-Asia relations.

About GMF’s Asia Program

Te German Marshall Fund’s Asia Program addresses the implica-

tions o Asia’s rise or the West—in particular, how Asia’s resurgence

will impact the oreign policy, economic, and domestic challenges and

choices acing the transatlantic allies—through a combination o con-

vening, writing, strategic grants, study tours, ellowships, partnerships

with other GMF programs, and partnerships with other institutions.

Led by Senior Fellow or Asia Daniel wining and ransatlantic Fellow

Andrew Small, the program’s initiatives include the Stockholm China

Forum and India Forum, seminars and other activities in Japan, a Jap-

anese ellowship program, Asia-related panels at GMF’s agship events

at Brussels and Haliax, and a paper series on transatlantic approaches

to wider Asia and on deepening cooperation between democratic Asia

and the West. For more inormation see http://www.gmus.org/asia.

About GMF

Te German Marshall Fund o the United States (GMF) is a non-

partisan American public policy and grantmaking institution dedi-

cated to promoting better understanding and cooperation between

North America and Europe on transatlantic and global issues. GMF

does this by supporting individuals and institutions working in the

transatlantic sphere, by convening leaders and members o the policy

and business communities, by contributing research and analysis

on transatlantic topics, and by providing exchange opportunities to

oster renewed commitment to the transatlantic relationship. In ad-

dition, GMF supports a number o initiatives to strengthen democra-

cies. Founded in 1972 through a gi rom Germany as a permanent

memorial to Marshall Plan assistance, GMF maintains a strong

presence on both sides o the Atlantic. In addition to its headquarters

in Washington, DC, GMF has six ofces in Europe: Berlin, Paris,

Brussels, Belgrade, Ankara, and Bucharest. GMF also has smaller

representations in Bratislava, urin, and Stockholm.

credibility among Pakistan’s political elite – including

lawyers, human rights activists, and pro-democracy groups – by ocusing on the need to hold ree and airelections, insisting on the independence o the judiciary,and supporting stronger civilian institutions. Europeis thereore well-placed to help strengthen Pakistan’sincreasingly dynamic civil society groups by ensuringmedia independence and supporting human rightsadvocacy groups, including those working to protectwomen, children, and marginalized communities. hePakistani government also needs advice on crating anew counter-terrorism strategy that strives to combatextremism through development.he EU should also

continue to explore ways to support ledgling demo-cratic institutions, with a particular ocus on institutionbuilding, legislative reorm, and voter participation.

he EU does not have the United States’ clout whendealing with Pakistan. However, Europe can be animportant niche player. Building a stronger EU-Pakistanrelationship requires a more ambitious, overarchingblueprint, and closer coordination with the United Statesand other donors. he EU must also be more innova-tive in building an agenda or engagement, prioritizingits sot power capacities to help a country in transition

modernize and reorm its economy, consolidate politicalinstitutions, and strengthen the rule o law. Withoutsuch a switch in emphasis, EU-Pakistan relations willremain entangled in strong rhetoric, with little hope o achieving real results.

Documents

Moving EU-Pakistan Relations Beyond Words