ISLAMABAD: The top European Union (EU) diplomat in Pakistan said on Monday the extension of a preferential trade arrangement with Islamabad was still possible since its administration had expressed interest in complying with various international conventions required to access the European market under the scheme.
The Generalized Scheme of Preferences Plus (GSP+) was first institutionalized in 1971 and has since been a trade and development policy instrument which allows the EU to remove duties from products exported by vulnerable developing countries.
These states get special access to the European market after making commitments to implement several international conventions on human rights, environmental protection and governance.
Pakistan’s GSP+ status is set to expire on December 31, 2023. More than 78 percent of the country’s exports enter the EU at preferential rates under the scheme that helps its exporters enjoy zero percent duty on several products.
Thomas Seiler, the chargé d’affaires of the EU delegation in Pakistan, told a conference focusing on human rights in Karachi the next phase of GSP+ would include more international conventions and agreements.
“Thomas Seiler has indicated that ‘GSP+ beyond 2023 is possible for Pakistan’ as the country’s government has ensured the EU that all efforts to show compliance with the high requirements would be made,” reported the state-run Associated Press of Pakistan news agency.
He added that nations availing the facility would have to respect and implement human rights while playing an active role in building a sustainable economy and better societies.
Relations between Pakistan and the EU recently got strained after former prime minister Imran Khan criticized European diplomats for writing a letter to his government, asking it to condemn Russia for invading Ukraine.
Last year in April, the European Parliament moved a resolution against Pakistan, seeking an immediate review of its eligibility for GSP+ status over what it called violence and discrimination against religious minorities and other vulnerable groups, as well as a crackdown on media.
The EU is Pakistan’s second biggest trade partner, accounting for 14.3 percent of the country’s total trade in 2020 and absorbing 28 percent of its total exports.
Pakistani exporters urged foreign minister Bilawal Bhutto-Zardari earlier this month to expedite diplomatic efforts for the extension of GSP+, saying the products which were currently going to the European market at zero percent duty would otherwise to subjected to 13 to 17 percent tariff rate.
