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Friday, March 29, 2024

EU Commission report to put spotlight on Pakistan

The European Union implemented a scheme in 2005 with which it started giving preferential trade conditions to lower and middle income countries (LMICs) if they implemented and ratified 27 conventions on human and labour rights, environmental protection and good governance.

This Generalised Scheme of Preference Plus (GSP+) has had some real successes, economically as well as in the enforcement of the related conventions.

Over the years, GSP+ has enabled many LMICs, especially their manufacturing and export sectors, to benefit and create jobs while European businesses and customers have benefited from the import of tariff-free products and raw materials.

The key to the efficacy of GSP+ is in holding the participating countries to account for any violations that may persist. One such opportunity will come when the European Commission reports on the scheme’s progress to the European Parliament and Council in the coming days. Two of these countries that have benefited the most from this scheme will be particularly in focus in the report – Pakistan and Philippines.

Pakistan is the biggest beneficiary of this scheme claiming 74 percent share of all exports under the GSP+ scheme. The Philippines has 22 percent while the remaining 4 percent is shared by Armenia, Bolivia and Sri Lanka.

The situation in Pakistan is better than the Philippines, especially with the Pakistani government’s recent initiatives to better protect human rights. However, concerns remain. The last EU commission report cited “worrying developments” and “grave concerns” about the generally weak rule of law in protecting women and children, and the longstanding and widespread issues of enforced disappearances, extrajudicial killings, torture and executions.

The GSP regulation allows the EU to take several steps in response to such violations, including the option of temporarily removing tariff preferences while the evidence is under review and cooperation is being sought from the country in question.

This was the approach taken with Sri Lanka in 2010. Any such steps beyond simple admonishment would be an important statement by the EU in light of these serious violations, also providing greater impetus for national civil society organisations to advocate for reforms themselves.

The scheme can be a win-win for people in beneficiary countries: but only if the EU makes sure that more exports mean more jobs coupled with genuine domestic protection for human and labour rights.

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