UK vows ‘more generous’ market access for Pakistan

ISLAMABAD: UK vowed a more generous market access for Pakistan than it currently enjoys under the generalised scheme of preferences (GSP) plus status of the European Union (EU), a commerce ministry’s statement said on Thursday.

British Minister of State for Trade Policy Greg hands expressed his country’s commitment during a meeting with Commerce Minister Pervaiz Malik who was on a visit to London to attend the Commonwealth Business Forum.

“Hands assured Pakistan’s commerce minister that post Brexit, Pakistan will get more generous market access in UK as compared to the access which it currently enjoys under GSP plus regime,” the ministry’s statement said. “He also assured to work with Pakistan to promote it as a safe destination for British investment.”

Commerce minister thanked British government for their support to Pakistan in securing GSP plus status with EU and asked for a closer trade relation post-Brexit.

The generalised scheme of preferences plus status, granted from January 2014, permitted nearly 20 percent of Pakistani exports to enter the 28-member countries’ European Union (EU) block at zero tariff and 70 percent at preferential rates. Pakistan was among the nine countries – including its textile rivals Bangladesh and Sri Lanka – that won the GSP plus status. Pakistan, however, could lose GSP plus treatment anytime till 2023 for noncompliance with anyone of the 27 conventions related to human and labour rights. Britain has been seeking to boost global trade ties following its 2016 year vote to leave the EU. The UK is Pakistan’s biggest trade partner in Europe with bilateral trade close to $2.18 billion in 2016. Pakistan's exports were $1.557 billion against imports of $0.610 billion from the UK. The balance of trade is in Pakistan’s favour.

Commonwealth countries represent about one third of global population having a combined GDP of $10 trillion which offers immense opportunities in trade and investment, “which Pakistan is keen to exploit in order to boost its exports and create employment opportunities”, the statement added.