Pakistan Could Lose EU Trade Benefits to India

For context, the European Union has pressed Pakistan to demonstrate stronger implementation of human rights and rule of law commitments to secure benefits under the next phase of its Generalised Scheme of Preferences Plus (GSP+) trade arrangement.

Key points

• Karoblis referred to the EU's assessment of Pakistan covering 2023 to 2025, published on July 16, 2026.
• PTC remarked it would take the meeting's findings and industry recommendations to the Prime Minister's Office, the Ministry of Foreign Affairs, and the Ministry of Commerce.
• He additionally cautioned that the EU-India Free Trade Agreement could growth competitive pressure on Pakistani exporters, even if Pakistan retains its preferential access.
• PTC CEO Muhammad Hasan Shafqaat pressed greater clarity and proportionate implementation of emerging EU rules, particularly the Digital Product Passport and supply chain due diligence requirements.
• PTC Chairman Fawad Anwar remarked continued GSP+ access was vital for Pakistan's value went on textile and apparel exporters, employment, tax contributions, and the wider business ecosystem.

Notably, the matter is critical for Pakistan's textile industry. It accounts for roughly 70 to 76 percent of the country's exports to the EU. Pakistan and Maldives Agree to Start Direct Flights.

EU Ambassador to Pakistan Raimundas Karoblis discussed the GSP+ process with Pakistan Textile Council (PTC) leaders in Karachi on October 21, outlining the requirements for the next phase of the trade arrangement. The session focused on Pakistan's recent performance, upcoming assessments, and the importance of textile and apparel exports to bilateral trade. EU Seeks Stronger Implementation of Commitments.

Karoblis referred to the EU's assessment of Pakistan covering 2023 to 2025, published on July 16, 2026. He remarked improvements in human rights and the rule of law were essential to securing benefits under the new GSP+ scheme. He clarified that the EU was not introducing new standards but projected Pakistan to implement commitments it had already produced under relevant United Nations conventions.

For context, the European Commission intends to engage more closely with the Pakistani administration, prioritizing demonstrable short term improvements in areas of concern before developing a credible action plan with specific measures, timelines, and measurable performance indicators.

For context, the new framework places greater emphasis on effective implementation rather than simply ratifying conventions or passing legislation. Textile Troubles Deepen: Zahidjee Shuts Down Weaving Operations.

He additionally cautioned that the EU-India Free Trade Agreement could growth competitive pressure on Pakistani exporters, even if Pakistan retains its preferential access. Textile Industry Seeks Recognition of Sectoral Progress.

PTC Vice Chairman Anees Khawaja remarked the EU assessment recognized progress throughout four areas: human rights, labor, the environment, and governance. He invited the EU ambassador to visit Multan to see how GSP+ had contributed to livelihoods and economic opportunities in smaller cities.

Gul Ahmed CEO Zaki Bashir pressed conditions in the textile and apparel export sector to be assessed separately from national-level findings. PTC leaders additionally cited practices in export-oriented manufacturing, including certified industrial facilities, female workforce participation exceeding 70 percent at certain sites, and established worker committees.

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PTC CEO Muhammad Hasan Shafqaat pressed greater clarity and proportionate implementation of emerging EU rules, particularly the Digital Product Passport and supply chain due diligence requirements. He remarked the requirements could extend transparency and traceability obligations throughout the entire value chain, potentially reaching back to the farm level.

PTC remarked it would take the meeting's findings and industry recommendations to the Prime Minister's Office, the Ministry of Foreign Affairs, and the Ministry of Commerce. The council additionally offered technical assistance and industry expertise to backing administration coordination, including through a dedicated senior focal point.

Anwar, who serves on the government's GSP+ reapplication committee, will present the textile and apparel industry's recommendations to the committee. Separately, PTC is preparing an assessment of the potential economic impact of the EU India Free Trade Agreement on Pakistan's exports at the request of the Ministry of Foreign Affairs. The findings will be shared with the ministry, the Prime Minister's Office, and the EU delegation.

PTC reaffirmed its commitment to working with the administration and the EU delegation to backing timely implementation of the required measures, preserve Pakistan's preferential market access, and protect the competitiveness of its textile and apparel exports. Stay Connected with ProPakistani.

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Taken together, the developments around pakistan Could Lose EU Trade Benefits to India point to a situation that is still moving, and the coming days should bring more clarity.