Pakistan will apply to the European Union some time early next week seeking to qualify for GSP+. According to informed sources, based on a brief prepared by Geneva-based International Trade Centre (ITC), the Ministry of Commerce has prepared a strong case to benefit from EU's GSP-plus scheme 2014 through enhancing competitiveness in the qualified sectors.
The ITC brief mentions conditions of GSP+ as follows: To qualify for GSP+, Pakistan and other beneficiary countries are eligible for duty-free imports of non-sensitive items and reduced tariffs for sensitive items, subject to ratification and effective application of 27 key international conventions on sustainable development and good governance (16 on human rights and labour rights and 11 on environmental standards and drug enforcement).
The burden is on the beneficiary country to prove "effective implementation" of the conventions; however, the special incentive arrangement can be withdrawn temporarily if the beneficiary country fails to meet certain conditions. This evaluation mechanism will be based on EU reporting, as well as that of the relevant monitoring bodes of the conventions (where they exist) and any data from third parties including legal and non-legal persons.
Some aspects related to the reporting and monitoring requirements and on-ground implementation will require further clarity. These include (i) undefined violation thresholds and (ii) unconditional acceptance of applicant state to third party monitoring.
Within Pakistan, the key issues are costs of implementation, stakeholder sensitisation and the impact of devolution on the concerned subjects.
Devolution: Environmental pollution and ecology, population planning and social welfare, welfare of labour, employers liability and workmen's compensation, population and social welfare, employment insurance, trade unions and labour disputes, regulation of labour and safety in mines and oilfields, drugs and medicines are among the subjects that have devolved from the Centre to the provinces as a result of the 18th Amendment to the constitution. However, the Provincial Governments have thus far neither developed the required legal framework or legislation for compliance with international obligations nor authorised the Federal Government to act on their behalf in this matter.
An analysis has been done on the new GSP+ scheme's conditionality requirements on sustainable development and good governance and implications for beneficiary countries. Simultaneously a review has been conducted on Pakistan's status vis-á-vis the 27 conventions required for GSP+ qualification and challenges to be faced for meeting the eligibility criteria. The analysis leads to the following recommendations:
Creation of a focal body to co-ordinate between Center and provinces and among Provinces to co-ordinate in the area of legislation for implementation of international conventions and maintaining liaison in the area of international monitoring:
-- Enhanced co-ordination between all stakeholders at country level, particularly post-devolution
-- Advanced capacity building and awareness campaigns
-- Creation of a dedicated country-level monitoring unit
-- Sector-level monitoring through a public-private stakeholder body comprising professional bodies' chambers and government departments
-- Enhanced number of judicial commissions for reporting
-- Creation of a panel of trade consultants and legal experts to advice on GSP+ conditionality.
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