Page 86 - TEXtalks. October- November 2023

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Reports

European Union’s GSP+

EU Parliament overwhelmingly voted to

extend the scheme for four more years

The European Union has decided to extend the Pakistan’s home textile exports increased by 141
GSP+ status until 2027 for the beneficiary countries percent and account for 8 percent of the EU’s total
including Pakistan without scrutinizing the import of home textiles. Textile apparel and hosiery
performance of these countries in fulfilling the exports to the EU after 2013 increased by 150
conditions laid down for GSP + qualification. percent accounting for 1.6 percent of total EU
imports in this segment.
The GSP+ is the special incentive arrangement for
Sustainable Development and Good Governance Pakistan is the second textile and garment exporting The eligibility criteria for GSP plus state that exports some progress in this regard. The EU diplomats
that supports vulnerable developing countries that country in the South and South East Asian region of GSP plus beneficiary country should not exceed 2 have throughout the last decade made progress on
ratified 27 international conventions on human rights, which will have duty-free access into the EU. percent of EU’s global GSP imports. The seven the 27 conventions. It may be noted that almost none
labor rights, environmental protection and climate Bangladesh is the other such country. Under the largest sectors of products contribute more than 75 of the GSP+ beneficiary countries have fully
change, and good governance. GSP Plus regime, all of the products of Pakistan’s percent of its exports to the EU. It is not a high or complied with these conventions but most of them
export interest are entitled to duty-free treatment upper-middle-income country, and has signed, have shown progress on sensitive issues like
The EU accounts for 28 percent of Pakistan’s total which includes all Textiles, textile made-ups, bed ratified, and implemented 27 core International environment, human rights, democracy, labor
exports. Under GSP+ Pakistan has duty-free access linen, garments, leather products, footwear, plastics, Conventions about; Human Rights, Labor Rights, rights, etc.
on 66 percent of its tariff lines. In the previous fiscal ethanol, agriculture products and processed food Environment, Narcotics Control, and Corruption.
year 2022-23, exports to EU nations declined by 4.41 etc. The textile sector in Pakistan complies with the
percent to $8.188 billion from $8.566 billion, even This was one of the most positive news for the workers’ rights under pressure from foreign buyers.
with the Generalized System of Preferences Plus China, Colombia, India, Indonesia, Thailand, and Pakistani economy and our textile sector. The They however lag far behind on environmental
(GSP+) scheme in effect. Still, exports to the EU Vietnam are not eligible for GSP Plus. China has also renewal of GSP+ status was originally subject to the issues. Bangladesh for instance has the largest
increased by over 80 percent after getting GSP+ in graduated out of the Textile and Garments sections progress of each country on the progress of the 27 number of certified green factories. There are few
2013. of the standard GSP while India has graduated out of conventions ratified by the countries in the past green factories in Pakistan. There is a lot to be done
the Textile section of the standard GSP, meaning that decade. Pakistan sustained its textile exports on the from the government side. The Europeans are
More than 75 percent of Pakistan’s exports to Europe imports from China and India will not be benefiting strength of GSP+ status. A scrutiny by the EU on our concerned about human rights in Pakistan, the issue
come from Textiles. Since qualifying for GSP+ status from preferential duties either. performance on human rights, environment, and of missing persons and actions against journalists
workers’ rights would not have gone well for Pakistan have not gone well with the EU. The EU has even
and many international lobbies were asking the EU today severely criticized Pakistan on handling the
not to renew Pakistan’s status. But Pakistan was Afghan refugees’ issue.
spared this embarrassment when the EU increased
the duration of the GSP+ status of all countries by The lip service paid by the government to
four years. environmental issues has been observed by the
EU regulators. The government failed to even
This extension has provided Pakistan with a chance establish even one water treatment plant for the
to comply with the 27 conventions or at least show textile factories.

October/November 2023 October/November 2023