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GSP Plus facility boosted trade between Pakistan, EU

By Mariana Baabar
November 04, 2021

ISLAMABAD: As the two years extension in the Generalised Preferential System (GSP) plus status from the European Union is set to expire in 2022, Pakistan on Wednesday stated that this facility to Pakistan had been mutually beneficial and played an important role in growth of trade between the two sides.

“Foreign Minister Shah Mehmood Qureshi in his meeting with EU Parliament’s Delegation for Relations with the Countries of South Asia, (DSAS) reaffirmed Pakistan’s commitment towards effective implementation of GSP Plus-related international conventions,” said the Foreign Office after a meeting.

The DSAS was headed by Nicola Procaccini during a three-day visit to Pakistan and in the delegation level talks at the Foreign Office was assisted by EU Ambassador to Pakistan Androulla Kaminara. Later, Qureshi in a Tweet said: “Highlighted the immense potential for greater trade investment and development in the GSP + facility which has been mutually beneficial and played an important part in growth of trade between Pakistan and the EU.”

GSP + for Pakistan took on a greater significant role when recently a resolution was brought up in the European Parliament, which "called on the Commission and the European External Action Service (EEAS) to immediately review Pakistan’s eligibility for GSP+ status in the light of current events and whether there is sufficient reason to initiate a procedure for the temporary withdrawal of this status and the benefits that come with it, and to report to the European Parliament on this matter as soon as possible".

In the past, the EU has temporarily withdrawn this facility from some countries including Sri Lanka for failing to meet Human Rights standards. The EU delegation has come to Pakistan just as the TLP decided to stop protesting as the resolution had also expressed “deep concern” at the prevailing anti-French sentiment in Pakistan.

Since the GPS+ is given with certain conditions, various issues related to this were raised on Wednesday and the foreign minister gave an account of various measures undertaken by the government for the welfare of the people of Pakistan.

While the Foreign Office did not comment on whether there had been any commitment on the extension of GPS +, earlier Abdul Razak Dawood, advisor to Prime Minister on Commerce and Investment, had said there are no threats to Pakistan's current GSP plus status and "no one should be worried about it".

Since the grant of GSP Plus in 2014, Pakistan’s exports to the European Union have enhanced from “4.54 billion euros in 2013 to 7.50 billion euros in 2020, registering an increase of 65 per cent”. The main sectors that benefited from GSP Plus have been textile and garments, which besides earning foreign exchange for the country, provided major employment opportunities.

Views were exchanged on various aspects of Pakistan-EU relations and regional and international developments, with Qureshi underlying that the Pakistan-EU Strategic Engagement Plan (SEP) has ushered in a new phase by laying a solid foundation and framework for multidimensional cooperation between the two sides.

“The foreign minister highlighted the enormous potential in diverse areas such as commerce and trade, sustainable development and climate change and stressed the importance of translating them into tangible outcomes to further deepen Pakistan-EU relations”, said the Foreign Office.

The two sides exchanged views on the latest developments in Afghanistan. The foreign minister highlighted that Pakistan had suffered most due to conflict and instability in Afghanistan over the last 40 years and that a peaceful and stable Afghanistan was in Pakistan’s vital interest. He appreciated that there was realization in the international community to engage with Afghanistan. He underlined that a humanitarian crisis and economic collapse in Afghanistan could have enormous consequences.

“He stressed that the Afghan people should not be abandoned and that the international community should remain positively engaged to advance shared objectives of peace, security, development and connectivity”, added the Foreign Office and highlighted Pakistan’s efforts, including its initiative of establishing the platform of six neighbouring countries of Afghanistan.

The foreign minister apprised the delegation of grave human rights violations in IIOJ&K. He stressed that Pakistan desired good relations with all neighbours. He highlighted Pakistan’s efforts to promote peace in the region and underlined that the onus was on India to create an enabling environment for result-oriented engagement.