EU Presses for Practical Implementation for Pakistan’s GSP+ Trade Benefit
GSP+ elevates Pakistan's exports to the EU, fostering growth and sustainability with zero-rated tariffs on two-thirds of products.
The European Union (EU) urges Pakistan for practical implementation of 27 international conventions that are integral to the Generalized System of Preferences Plus (GSP+) scheme.
The EU’s fourth report on the scheme underscores Pakistan’s legislative advancements. However, the report emphasizes the need for translating these advancements into practical applications, crucial for continued GSP+ status.
The assessment covers key areas, including human rights, labor rights, environmental standards, and good governance, spanning the period from 2020 to 2022. It called for their effective implementation in both letter and spirit.
Published jointly by the European Commission and the European External Action Service (EEAS), the report assesses the progress of eight GSP+ beneficiary countries, with a focus on Pakistan’s effective implementation of these international core conventions that form the basis of the GSP+ scheme.
Pakistan’s Exports Soar: GSP+ Sparks 108% Growth in a Decade
Pakistan acquired GSP+ status on January 1, 2014, upon ratifying 27 international conventions and committing to their implementation. the scheme serves as a special incentive arrangement, promoting good governance and sustainable development through facilitated trade.
This incentive provides Pakistan with zero-rated or preferential tariffs on approximately 66 percent of tariff lines, significantly boosting the country’s export capabilities to the EU market. The impact of GSP+ on EU-Pakistan bilateral trade is evident in the period from 2014 to 2022, witnessing a noteworthy 108 percent increase in Pakistan’s exports to the EU. Simultaneously, imports from the EU to Pakistan grew by 65 percent, leading to a surge in total trade volume from EUR 8.3 billion in 2013 to EUR 14.85 billion.
Key beneficiaries of the status include Pakistan’s garments, bed linen, terry towels, hosiery, leather, sports, surgical goods, and similar products, enjoying favorable terms when entering the EU market.
EU Ambassador Urges Diversification in Pakistani Exports
Upon the report’s publication, EU Ambassador to Pakistan H.E. Dr. Riina Kionka highlighted the positive impact of the GSP+ incentive on Pakistani society. She noted its undeniable role in raising awareness of human rights at the grassroots level, promoting labor rights within businesses and export supply chains, and emphasizing the significance of environmental considerations and good governance. However, Ambassador Kionka stressed that the full potential of the GSP+ benefit can only be realized by diversifying Pakistan’s exports to include more value-added products.
The report identifies areas where additional progress is necessary. To date, four biennial reviews have been concluded under the current GSP scheme. Similar to other beneficiary countries, Pakistani authorities, at various levels, have engaged in constructive dialogue. Additionally, civil society, trade unions, business organizations, and international entities have contributed valuable information and specific findings during the last monitoring period, notably the most recent Monitoring Mission in June 2022.
