Pakistan advised to follow EU requirements for availing export benefits

the FPCCI

EU requirements include ensuring human rights, labor rights, environmental standards and good governance

For availing the benefits of the EU’s Generalized Scheme of Preferences Plus (GSP+), Pakistan has been advised to remain on course on EU requirements on human rights, labor rights, environmental standards and good governance.

“Human rights, labor rights, environmental standards and good governance are principally the four areas where Pakistan’s performance comes under review,” Dr. Riina Kionka, Ambassador of EU in Pakistan, said during her meeting with the officials of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) on January 11, 2024 in Karachi.

Dr. Riina Kionka apprised the FPCCI leaders that there will be a new EU parliament and EU Commission in June 2024. “There might be some review or policy changes in rules framework for Pakistan’s GSP+ status,” she said advising that Pakistan should remain on course on EU requirements on human rights, labor rights, environmental standards and good governance.

Dr. Riina Kionka also informed that the monitoring report about Pakistan on the above-mentioned four areas is expected to be released in November 2024. She also called upon the trade & industry representatives to fully capitalize on GSP+ status by the means of diversifying Pakistan’s exports to EU other than textiles – which happens to account for upwards of 80 percent of Pakistan total exports under GSP+.

The monitoring report about Pakistan on the above-mentioned four areas is expected to be released in November 2024

It is pertinent to mention that the EU’s Generalized Scheme of Preferences Plus (GSP+) gives developing countries a special incentive to pursue sustainable development and good governance.

The eligible countries have to implement 27 international conventions on human rights, labor rights, the environment and good governance. In return, the EU cuts its import duties to zero on more than two thirds of the tariff lines of their exports. The beneficiary countries include Bolivia, Cape Verde, Kyrgyzstan, Mongolia, Pakistan, Philippines and Sri Lanka. The current GSP+ was valid until 2023.

Atif Ikram Sheikh, President FPCCI, speaking at the meeting viewed that the 27-country economic alliance of European Union – with a cumulative GDP of almost $20 trillion – can help Pakistan steer out of the chronically dilapidated state of the economy of country. “Enhancing our exports to the EU nations should be the cornerstone of broader economic relations. Pakistan has achieved an encouraging 108 percent growth in exports to EU over a period of 10 years; however, in order to retain our GSP Plus status, we must not be complacent and be vigilantly continuing to fulfill EU criteria,” he added.

Saquib Fayyaz Magoon, SVP FPCCI, explained that Pakistan is, indeed, a major beneficiary of GSP Plus since 2014 as it has facilitated our exports to European Union. “Under this scheme, Pakistan is eligible to export around two third of products at zero tariff rate or at preferential tariff rate; and, Pakistan’s GSP+ status has been extended to 2027 as of now.”

Dr. Riina Kionka paid a detailed visit to the FPCCI Head Office in Karachi along with her senior team members, to offer the apex body their full support in fulfilling GSP+ opportunities and requirements.

Published under International Cooperation with "Sindh Courier"