EU stresses human, labour rights for GSP Plus

KARACHI: European Union (EU) on Friday underscored the need for Pakistan to ensure implementation of conventions related to human and labour rights to continue benefiting from exports with tax concessions to the bloc.

Talking to the business community, EU Ambassador in Pakistan Androulla Kaminara said Pakistan made improvements in some of the 27 conventions needed for generalised scheme of preferences (GSP) plus.

“There is a need to expedite reforms and steps for legislation on disappearance, torture, abuse and inspection on factories to meet all EU obligations,” Kaminara said during a meeting at the Karachi Chamber of Commerce and Industry (KCCI).

In March last year, European Commission extended GSP plus status for Pakistan till 2022 under which exports from Pakistan have preferential tax treatment in the EU member countries. Progress on reforms and implementation of conventions is reviewed after every two years. Special trade incentives like GSP status are withdrawn if the country is found not fully abiding by obligations.

“Pakistan has gained a significant improvement in certain areas but a lot more needs to be done in other sectors as well,” EU envoy said.

Since the grant of GSP Plus in 2014, Pakistan’s exports to the European Union have increased from 4.5 billion euros in 2013 to 7.4 billion euros in 2019, showing 65 percent growth. The main sectors that benefited from GSP PLUS included textile and garments.

The EU Ambassador said the EU is committed to working together to facilitate EU’s trade in Karachi and the rest of the country. The EU and Pakistan Business Council would be formed to strengthen the bilateral trade and economic ties with a particular focus on small and medium enterprises.

KCCI President Shariq Vohra said GSP Plus has helped Pakistan fight terrorism and bring peace to the world.

“The GSP plus created abundant employment opportunities that helped in dealing with the economic crises to an extent and it should not be disturbed and the European Union must continue it for a longer period of time so that the industry is geared up to deal with all the challenges in a highly competitive world,” Vohra said.

KCCI president said the government must expedite work on all the legislations on top priority which have been pending at the level of National Assembly, senate or National Commission for Human Rights and all such legislations which are required by European Union must be approved and legislated at the earliest. The EU must work closely and more actively with the Karachi Chamber to review the progress and impact of GSP Plus on Pakistan’s economy and businesses, he said.