Pakistani leader seeks EU 'trade, not aid'

(BRUSSELS) - Pakistani President Asif Ali Zardari pushed for greater access to European markets on Wednesday, saying that trade rather than aid was his chief goal in a landmark summit with the EU.

"With the help of the world we will win this, and half the war is the hearts and minds of the people," Zardari, whose government is battling a Taliban insurgency in northwest Pakistan, told reporters in Brussels.

"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 added after talks with NATO ambassadors.

"I'm always hopeful, I'm a man who has walked from the gallows to the presidency," said Zardari whose rise to the presidency last September came after he fought off charges of corruption and murder.

Zardari was speaking ahead of the first ever EU-Pakistan summit where trade links are to top the agenda with the ultimate goal being further down the line a free trade agreement.

According to a draft text, the EU will "explore" how Pakistan could benefit from its preferential tariff regime, which affords customs privileges in return for respecting principles in the areas of workers' rights and the environment.

Zardari's visit comes amid a massive offensive by government troops against the Taliban in northwest Pakistan which has led to the displacement of some two million people.

Ahead of the summit, the European Commission announced that it would provide 65 million euros in new aid money to help people displaced from the Swat valley and other conflict zones.

"In exchange, we want Pakistan to take the fight against terrorism very seriously and that they do a lot on their home front," said EU External Relations Commissioner Benita Ferrero-Waldner.

"That means all the questions of good governance, on education ...," she told journalists at the summit. "Then we will be excellent partners."

Yet fears are growing of a broad humanitarian crisis as fighting spreads.

British-based aid organisation Oxfam called it "the world's biggest and fastest growing human displacement in over a decade" and said funds to help the displaced remained inadequate.

"The total figure of internally displaced persons is likely to rise as military operations extend into other areas," it said in a statement Tuesday.

Oxfam targeted the EU for its "feeble response to the humanitarian crisis."

Meanwhile rights watchdog Amnesty International urged the 27-nation bloc to put pressure on Islamabad to protect civilians and respect the law.

"The crisis needs a strong international response to ensure that the protection of civilians is paramount," Amnesty said in a statement.

"The EU should stress the importance of Pakistan fully complying with its obligations under international humanitarian and human rights law in all its military operations."

The offensive is also vital to NATO's interests.

The military alliance is struggling to control a Taliban-led insurgency that is undermining its biggest and most ambitious operation ever in neighbouring Afghanistan, which is aimed at fostering democracy and reconstruction.

The insurgents, backed by Al Qaeda and criminal gangs, have been using Pakistan's lawless tribal areas as a base, resulting in cross-border shooting involving NATO-led forces or US operated drone strikes.

After addressing NATO ambassadors, Zardari said: "It's a constructive dialogue. We are partners together. I intend to be partners with them."

He also committed to defeating the Taliban.

"The war has just started. (But) I can tell you my determination to fight is there, my army's determination to fight is there, my people's determination to fight is there, and defeat is not an option for us," he said.

• Summit EU-Pakistan (Troika)
• EU - Pakistan relations