European Union (EU) Ambassador to Pakistan Raimundas Karoblis on Wednesday said the country needed to “do more” in terms of meeting its commitments under the Generalized Scheme of Preferences Plus (GSP+) regime ahead of a review.
The status was granted by the EU in 2014, resulting in a 108 percent increase in Pakistani textile exports to the EU due to concessional tariffs.
In October 2023, the European Parliament voted unanimously to extend GSP+ status for another four years, until 2027, for developing countries, including Pakistan.
The upcoming GSP+ monitoring mission will examine Pakistan’s record in 27 international agreements linked to the trade scheme. Maintaining GSP+ status is critical for Pakistan to keep export costs low.
What is GSP+ status?
According to the EU, GSP+ status is a special incentive given to developing countries to “pursue sustainable development and good governance” in exchange for reducing import duties on two-thirds of their export tariff lines to zero.
Governments with this status need to implement 27 international conventions on human rights, labor rights, good governance and the environment.
This means that Pakistan, in exchange for implementing all 27 conventions, can enjoy minimal or duty-free duties on European exports, including clothing, home textiles and surgical instruments, according to a 2022 report by the Ministry of Commerce.
EU export earnings rose to $3.17 billion in July-October, up from $3 billion in the corresponding months last year, according to figures compiled and published by the State Bank of Pakistan on Monday.
The EU will monitor a country that has been granted GSP+ status to ensure that it remains a party to international conventions and implements them effectively. You must also comply with reporting requirements and agree to regular monitoring in accordance with the conventions.
The country concerned and the EU will maintain frequent dialogue and hold meetings on the implementation of the 27 conventions, with a public report submitted to Brussels for review every two years.
Has Pakistan implemented these conventions?
In an interview in DawnNewsTV On today’s ‘Doosra Rukh’ programme, Ambassador Karoblis was asked if Pakistan needed to do more to meet the requirements of the plan, to which he replied: “Yes, we are saying that. We are saying that it should be, well, it is necessary, to do more.”
He said it would be a periodic monitoring mission that would evaluate the implementation of all United Nations conventions necessary for the implementation of the plan.
“There are issues of human rights, labor rights, environmental issues and good governance. Many meetings will be held with state institutions, but also with civil society organisations, with human rights defenders, but also with companies and, indeed, with people who work in companies.”
