ISLAMABAD: The government is optimistic about retaining the European Union’s GSP-Plus status for another 10 years after the current status expires on December 31, 2023, WealthPK reported on Tuesday.
The government has strived to implement 27 UN Conventions in a bid to retain the EU’s Generalised Scheme of Preferences (GSP) for another decade, says the Ministry of Commerce in a document submitted to the Parliament.
According to the document, Pakistan has made a certain legislation, which is necessary for the implementation of the UN Conventions – a condition set by the EU for GSP-Plus Status.
The government has set up a Treaty Implementation Cell (TIC) to coordinate with all stakeholders, including the provincial governments and departments.
“The federal and provincial governments and other departments have worked accordingly for the implementation of the EU conditions, which would be helpful in retaining the GSP-Plus status”, says the document.
So far, three successful biennial reviews on the current GSP Plus status of Pakistan have been concluded in 2016, 2018 and 2020 respectively.
According to the Ministry of Commerce, the EU monitoring mission is expected to visit Pakistan in February 2022.
The UN Conventions deal with the improvement of labour laws, efforts for climate change and working environment in indusial units.
The EU’s GSP Scheme, an entrenched trade and development policy instrument, has been in place since 1971. Pakistan has been a major recipient of the GSP Plus scheme over the last seven years, WealthPK added.
Pakistan’s current GSP-Plus status, which started on January 1, 2014, is valid till December 31, 2023. The European Commission adopted the legislative proposal for new GSP scheme (2024-34) on September 22 last year. Once adopted by the EU Parliament, all beneficiary countries, including Pakistan, will have to furnish a fresh application [with the EU] for granting the GSP scheme. The scheme will be in place for 10 years. The beneficiaries will have to implement 32 UN international conventions.
The government is also optimistic about up to 35 percent increase in exports to the European Union in next five years if the country manages to retake benefits under the GSP for another decade.
“We are hopeful about up to 35 percent growth in our exports to the EU within few years if Pakistan is re-granted GSP Plus scheme in 2024,” Abdul Razak Dawood, Advisor to the Prime Minister on Commerce, Industries and Production and Investment, told WealthPK on the sidelines of a meeting of the Senate Standing Committee.
The advisor said the EU had granted Pakistan several relaxations for trade under the current GSP Plus status.
“It is up to our exporters to take full advantage of the concessions provided by the EU,” Abdul Razak Dawood stated.
The advisor said Pakistani exporters should focus on all the products covered under the GSP Plus to increase the volume of exports to the EU countries instead of targeting selective items.
The Ministry of Commerce document shows Pakistan’s exports to the EU have increased by 47% under the GSP Plus during the last seven years. Exports to the EU increased from $6.095 billion in 2013-14 to $8.943 in 2020-21. Total trade with the EU has registered a growth of 27% from $10.640 billion in 2013-14 to $13.531 billion in 2020-21.
Similarly, Pakistan’s imports from the EU have increased by 1% from $4.545 billion in 2013-14 to $4.588 billion in 2020-21. Under the current GSP status, Pakistan is given zero-rated tariff preference on almost 91 percent of tariff lines to the EU market. -INP
