Page 88 - TEXtalks. October- November 2023
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 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.
                                                                                                                                                                  st
                                                                                                                                                                               th
 The GSP+ is the special incentive arrangement for                                                                                                          01 - 04 May 2024
 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.

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