EU mulls extending GSP+ status for Pakistan
Business
Islamabad has been able to significantly increase exports since 2014
BRUSSELS (Web Desk) – Whether Pakistan will be able to extract extension from the European Union (EU) in the GSP+ status – set to expires by the year-end – is a major challenge for the country which hasn’t been able to increase exports amid a severe financial crisis.
The good news is that the EU is considering an extension by introducing a legislation to continue the scheme. But the worrying aspect is there is a difference of opinion between the European Council and the European Parliament with the former wanting to link the GSP+ status with migration [and other issues] and the latter against the move.
In this connection, European Parliament Member Heidi Hautala told Pakistani journalists that they strongly believed that trade should not be linked with the migration issue.
Given the scenario, a temporary solution has been presented which says that the current scheme should be extended for four years instead of 10. Pakistan has been enjoying the GSP (Generalised Scheme of Preferences) + status since January 2014.
However, the positive aspect is that the matter would be decided by the EU Parliament although the period may be curtailed.
But the long-term issue Pakistan would face which may adversely affect the status is the harsh conditions related human rights, labour rights, good governance, and environmental protection, demanding the country like all other beneficiaries to implement 27 international conventions.
Pakistan’s exports – mainly textiles – to the EU have markedly increased after receiving status as the trade between the two sides went up from 6.9 billion euros in 2013 to 12.2 billion euros in 2021. It made Pakistan the largest beneficiary amongst all GSP+ countries.
