Page 8 - TEXtalks September/October 2021

08 09

European Union GSP+ status for

Pakistan under considerations

Much-awaited news for the textile sector of Pakistan has been the largest beneficiary of the
Pakistan is the extension in GSP+ status. So far, current GSP plus scheme since 2014, with zero
the European Commission has retained Pakistan %t duty on several hundred products under the
in its preferential trade access scheme while current regulation, which will expire on Dec 31,
finding no grounds to exclude the country on 2023. The new proposal will become the
demand of the European Parliament that passed successor. The general trade picture shows that
GSP+ status has given the following
two resolutions to review the Generalised opportunities:
Scheme of Preference-Plus (GSP+) status. The
commission is considering extending the • The EU is Pakistan's second most important
Generalised Scheme of Preferences-Plus (GSP+) trading partner, accounting for 14.3% of
status to Pakistan until 2024. Pakistan's total trade in 2020 and absorbing 28%

of Pakistan's total exports.
However, the commission attached six new • In 2020, Pakistan was the EU's 42nd largest
conventions, mostly related to greater trading partner in goods, accounting for 0.3% of
accessibility for people with a physical disability, EU trade.
eradication of child labor, and environmental • Pakistani exports to the EU are dominated by
safety. Under the commission's new proposal, textiles and clothing, accounting for 75.2% of
which covers 10 years from 2024, six new Pakistan's total exports to the EU in 2020.
conventions will be added, including the Paris • Pakistan's imports from the EU are mainly
climate change agreement and ones covering machinery and transport equipment (33.5% in
rights for people with disabilities and 2020) and chemicals (22.2% in 2020).
trans-national organized crime. The EU • From 2010 to 2020, EU27 imports from
Ambassador is joining the upcoming ICC 2021 Pakistan have almost doubled from €3 072 to €5
conference in Lahore, where her excellency will 537 million. The growth of imports from Pakistan
discuss the GSP+ status. Therefore, ICC 2021 is has been swift since the award of GSP+ (€5 515
becoming a must-attend event if you are a textile million in 2014).
professional or industrialist.

The EU and Pakistan have set up a Sub-Group
Pakistan has shown a more significant on Trade to promote the development of two-way
commitment to climate change, and its recent trade. The Sub-Group on Trade - set up under the
drive can facilitate the new EU conditions. The auspices of the EU-Pakistan Joint Commission -
statement said that GSP+, with zero tariffs on is the forum for discussions on trade policy
two-thirds of products, was offered to a group of developments more broadly and aims to tackle
countries, including Pakistan and The Philippines, individual market access issues that hamper
that implement 27 international conventions on trade between the two parties. The textile
human and labor rights, the environment, and industries across the country have well
good governance. appreciated the extension in GSP+. However, the
industrialists are asking to favor the textile sector
Since the GSP+ status has been granted to by reducing export duties so that the exports
Pakistan, it has benefited the textile sector. could be increased further.

September/October 2021 September/October 2021