Regional competitors in Europe: GSP Plus status to provide level-playing field: minister

Minister of State for Commerce, Textile and Privatisation has said that grant of Generalised System of Preferences (GSP) Plus status to Pakistan by the European Union from January 1, 2014, will provide Pakistan a level-playing field to compete with the regional competitors in the 27 countries European block. A couple of days ago, European Parliament committee - International Trade Association (INTA) had cleared GSP Plus status for Pakistan, which will be presented to the European Parliament for final approval.
The committee had voted in favour of proposed 10-country package, including Pakistan for the duty-free facility which was long pursued by Pakistan. Under the facility selected items of textile, having less than two percent share in the EU markets would benefit by zero duty facility.
Commerce Ministry's top officials have firm understanding that the EU Parliament cannot amend the recommendations of the committee. "The EU Parliament has to approve or reject the GSP status to Pakistan, but it cannot amend the recommendations of the committee," said an official on condition of anonymity.
Addressing a press conference, Khurram Dastgir said economic diplomacy of Foreign and Commerce Ministries did excellent job in securing the status, which will help enhance the country's trade to EU block up to $ 1 billion. According to Khurram, with the approval of GSP Plus status, 0.1 million people will get jobs besides increase in investment in the country.
The duty-free market access to various products of textile would only support overall exports of the country but would also create job opportunities for thousands in the country.
"As the GSP status is granted to Pakistan, extra duty of 9.6 percent on Pakistani textile goods will be waived off as Pakistan's competitors are already enjoying this incentive," he added.
He was of the view that through this incentive Europe has extended a great support to Pakistan in its fight against terrorism.
In reply to a question, the Commerce Minister stated that though this is the fact that the previous government has also made efforts in the process of granting the facility to Pakistan, he personally lobbied in the European Union to get more votes in favor of the economic package to be enjoyed by some countries, including Pakistan.
Our yarn and cotton being used for textile made-ups by those countries listed in GSP will be used in the country for making value added products," he said, adding that more demand for value added products with competitive price in the foreign markets would make the dysfunctional industrial units in the country functional.
It was the economic diplomacy of the government which resulted in granting the facility, which was once feared to be rejected by some parliamentarians of EU having reservations over the package to Pakistan. Along with the diplomatic efforts political pursuance of the case has made the plan successful, Dastgir claimed. In reply to a query that how long the present government will honor the conventions it signed for getting the trade package including the death moratorium issue, the Minister said that existing moratorium on implementation of death penalty in the country has no link with the trade facility." It was included in the manifesto of Pakistan Muslim League (N) that we will respect human rights," he added.
He said Pakistan is also making efforts in finding new trade markets in the world including Africa and other continents. He said recently Pakistan and China deliberated on establishing joint textile ventures in Pakistan.