EU Warns Pakistan GSP+ Benefits Cannot Be Taken For Granted

Pakistan faces a tough path to retain its preferential trade access to the European Union as Brussels warns that GSP+ benefits cannot be taken for granted and that Islamabad will need to address worries over its implementation of international conventions.

Key points

• After which Pakistan will have to seek inclusion in the successor scheme, the current EU Generalised Scheme of Preferences Plus framework expires at the end of 2026.
• EU Ambassador to Pakistan Raimundas Karoblis informed Dawn that there were serious worries within the European Commission over Pakistan's compliance with the conventions underpinning GSP+.
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• Textiles and clothing are particularly dependent on the arrangement, accounting for regarding 70 percent to 76 percent of Pakistan's exports to the European market.

After which Pakistan will have to seek inclusion in the successor scheme, the current EU Generalised Scheme of Preferences Plus framework expires at the end of 2026. Existing beneficiaries are projected to receive preferences during a two-year transition period until Dec. 31, 2028, but the transition does not guarantee automatic continuation under the new framework.

EU Ambassador to Pakistan Raimundas Karoblis informed Dawn that there were serious worries within the European Commission over Pakistan's compliance with the conventions underpinning GSP+. He remarked areas of regression identified in the EU's latest assessment would need to be addressed as part of Pakistan's reapplication. FWO Seeks to Recover $432 Million Pipeline Investment in 4 Years.

In practice, the European Commission's assessment for 2023 to 2025 triggered concern over enforced disappearances, extrajudicial killings, freedom of expression, journalists' and minority rights, judicial independence, access to justice and forced labor. According to The report additionally, some legislative and administrative measures had not yet translated into sufficient improvements on the ground.

Pakistan's Foreign Office remarked Islamabad remained committed to implementing the 27 international conventions linked to the current GSP+ framework, but argued that the EU assessment did not present a sufficiently balanced picture of the country's performance. It additionally stated GSP+ remained central to Pakistan's economic relationship with the EU.

In practice, the stakes are high since Pakistan is the largest beneficiary of the GSP+ scheme. While $7.115 billion worth of exports employed preferential access, in 2024, Pakistan received almost €732 million in tariff exemptions. The EU accounted for regarding 28 percent of Pakistan's total exports, with almost 90 percent of exports to the bloc eligible for GSP+ preferences.

Textiles and clothing are particularly dependent on the arrangement, accounting for regarding 70 percent to 76 percent of Pakistan's exports to the European market. Other major beneficiaries include leather products, prepared foods and beverages. Losing preferential access could therefore create Pakistani products less competitive in one of the country's most notable export markets.

Meanwhile, the new GSP+ framework will additionally raise the compliance requirements. While the successor scheme will cover 32, the current system covers 27 international conventions. Pakistan has already ratified the five extra conventions, according to the EU ambassador, but implementation will remain the key test.

Pakistan will additionally need to submit an action plan as part of its reapplication, with concrete measures, timelines and performance indicators. The EU has not yet determined whether the reservations identified in its assessment are serious enough to trigger a partial or full temporary suspension of existing preferences.

While Bolivia has faced partial withdrawal, the EU has previously withdrawn GSP+ preferences from countries including Sri Lanka. The EU ambassador remarked Pakistan's current situation still required further investigation, but cautioned that the absence of a suspension decision should not be viewed as a free pass. Stay Connected with ProPakistani.

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In short, EU Warns Pakistan GSP+ Benefits Cannot Be Taken For Granted is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.