Page 11 - TEXtalks October/November 2021

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Discussion on Pakistan's

GSP+ Status

The European Union (EU) has included five new international conventions as eligibility criteria for the new
10-year (2024-34) General System of Preference (GSP) Plus scheme. The generalized Scheme of Preferences
(GSP) removes import duties from products coming into the EU market from vulnerable developing countries,
helping developing countries alleviate poverty and create jobs based on international values and principles,
including labor and human rights. Pakistan is one of the countries that is getting an export boost from the
GSP+ Regime. However, due to various observations and new amendments in GSP+ Status, Pakistan's
GSP+ Status is under review for approval.

Pakistan is earning $7 billion from export through GSP Plus every year. On the other hand, the EU linked the
extension of Status with improving conditions in specific issues related to human rights. A four-member
European Union (EU), Parliamentary Delegation for South Asia Relations led by Nicola Prokasini, a member of
the Committee on Civil Liberties, Justice and Home Affairs, visited Pakistan before the EU's review decision on
the fate of GPS Plus Status in February 2022. The delegation held separate meetings with Law Minister Dr.
Farogh Naseem and Attorney General for Pakistan Khalid Jawed Khan and discussed matters of mutual
interest. It is learned that the Pakistan authorities urged the delegation that the country should not be
abandoned, but their engagement should continue; otherwise, extremist forces would be proactive in the
country. They informed that no one has so far been executed in any blasphemy case. Matters relating to overall
criminal justice reforms and other legislation, including bills for the protection of journalists and anti-torture bills,
were also discussed in the meeting.

The EU Commission adopted the legislative proposal for the new GSP scheme on September 22, 2021. Once
adopted by the EU Parliament, all beneficiary countries, including Pakistan, will make a new application to the
EU. According to Commerce Advisor, the EU has opened trade for Pakistan, but Pakistan's range of products
is limited. He urged exporters to expand their range of products and focus on products covered under GSP
plus but not being exported.

Androulla Kaminara, Ambassador of the European Union to the Islamic Republic of Pakistan, appreciated the
government approach and the institutional mechanism put in place by Pakistan to implement the various
commitments under GSP Plus. She also participated in the Inspiring Change Conference (ICC 2021) organized
by TEXtalks International on October 14, 2021, where she presented a keynote talk and discussed Pakistan's
GSP+ Regime continuation strategy. She urged the government and Pakistan's textile sector to work together
for mutual benefits and showed a way forward to get this regime back. She highlighted reiterated the EU's
support for promoting universal values and creating an enabling environment for implementing 27 UN
Conventions in the beneficiary countries, including Pakistan.

Punjab Governor Chaudhry Muhammad Sarwar is hopeful that Pakistan will be granted an extension in
GSP-Plus Status by the European Union. The country will also get this Status for another ten years. He was
confident that despite all conspiracies of India, Pakistan would get GSP Plus Status for another ten years.

October/November 2021