Page 11 - TEXtalks. September-October 2022

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The immediate release of

Hamid Zaman The EU's GSP+

All Pakistan Textile Mills Association (APTMA) has expressed deep grief and concerns over the arrest of its
Zonal Chairman Hamid Zaman, a highly respected business leader of the country. Business and politics reduced tariffs for Pakistan to
shouldn’t be interlinked. Business community feels businessmen are becoming part collateral damage in result
of current political turmoil.

Hamid Zaman is a distinguished, innovative, and progressive businessman engaged in the entire value-added continue till December 2023
chain of textile sector and managing one of the largest fashion retail outlets renowned all over the world. He is
also widely acclaimed for his philanthropy, charity, and community work. Hamid Zaman is an upright and
elderly businessman respected by the business community at large. The GSP+ status granted to Pakistan will expire in December 2023 and Pakistani planners along with the
textile sector in Particular are making efforts for its renewal for the next 10 years.
APTMA has regretted that such a prominent business person of the country was suddenly incarcerated
notwithstanding the fact that he had voluntarily joined the investigation and was fully cooperating with the The GSP+ concessions have helped Pakistan increase its textile exports to the EU. Pakistan's textile exports
investigators. His arrest and remand is an unnecessary step that does not inspire confidence in the business increased even during the period when total exports of the country were on the decline from 2014 to 2020.
community. His business house is deeply rooted in the country and registered amongst one of the largest The only increase during this period was to the EU. The EU ambassador is currently visiting trade
taxpayer. In such a situation there was no cogent reason or justification to arrest a renowned business figure associations to press businessmen for pressing the government to comply with all the EU conventions in
who is providing jobs to thousands of employees and earning huge valuable foreign exchange for Pakistan. letter and spirit.

Hamid Zaman should be released immediately in the larger interest of the business environment and to give a The EU's Generalised Scheme of Preferences (GSP), created following UNCTAD recommendations in 1971,
sense of protection and respect to the business community. helps developing countries (DC) by making it easier for them to export their products to the European Union.
This is done in the form of reduced tariffs for their goods when entering the EU market.

Currently, 30 countries and territories enjoy these reductions that have ratified and effectively implement core
international human and labor rights, environment and good governance conventions. The GSP undergoes
regular reviews to take account of evolutions in international trade patterns, whilst remaining within a stable
Bangladesh registers the highest Since 2005, the scheme has taken up a new role: to provide incentives to those vulnerable countries
and predictable framework.

growth in the EU apparel market committed to promoting sustainable development and good governance. Such countries are granted
additional preferences via the "GSP+" arrangement.

The GSP+ currently covers 13 beneficiaries: Armenia, Bolivia, Cape Verde, Costa Rica, El Salvador, Georgia,
Guatemala, Mongolia, Pakistan, Panama, Paraguay, Peru, and the Philippines. These countries have ratified
EU apparel imports from Bangladesh increased by 44.60 percent over the same period last year, while their the 27 core international conventions in the fields of human and labor rights, the environment, and good
global imports increased by 25.03 percent. EU imports from Bangladesh reached $11.31 billion, the second governance listed in Annex VIII to the GSP Regulation and the monitoring bodies under these conventions
highest after China.
must not identify a serious failure to its effective implementation of any of these conventions.

EU imported $12.22 billion worth of apparel from China during the mentioned time and registered 21.78 The eligibility criteria for each country is that its exports should not exceed 2 percent of the EU's global GSP
percent year-over-year growth whereas Turkey registered 20.38 percent year-over-year growth and exported imports. Its seven largest sectors of products contribute more than 75% of its exports to the EU. It is not a
$10.89 billion worth of clothing to the EU. Other top countries with high growth are Cambodia 40.15 percent, high or upper-middle-income country, and; Has signed, ratified, and implemented 27 core International
Pakistan 32.28 percent, Indonesia 28.64 percent, and India 24.90 percent. The surge in EU imports was mainly Conventions pertaining to; Human Rights, Labor Rights, Environment, Narcotics Control, and Corruption.
due to the recovery from the pandemic and an increase in retail sales because of increased shopping by
consumers. However, the upward trend may not sustain as European brands have been hit hard by the recent Monitoring has been enhanced by means of the European Commission's continuous dialogue with
Russia-Ukraine war and higher inflation rates.
beneficiary countries, and by mandating reports every 2 instead of every 3 years. Scrutiny is now carried out
not only by the Council of the EU but also by the European Parliament. The scheme that started in 2014 will
Md. Mohiuddin Rubel, Director, BGMEA said, “we observed that Bangladesh’s total export maintained last 10 years (until the end of 2023).
significant growth until August 2022, which means EU’s imports from Bangladesh might keep on positive trend
till September and may falter afterward as retail sales are already affected by economic turmoil and buyers
being cautious about overstock and current production.”

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