GSP plus conditions: EU mission due on October 22 to monitor implementation

European Union (EU) is to despatch its Mission to Islamabad from October 22-29 to monitor implementation of Generalized System of Presences plus (GSP plus) conditions, due to which Pakistan's exports to 28 countries bloc increased by 47 per cent since 2014, well informed sources told Business Recorder.
The EU had granted market access to Pakistan under GSP plus scheme effective January 1, 2014, with special effort by the PML (N) government including Governor Punjab Ch Sarwar who held the same office at that time. This incentive will continue till 2023.
Pakistan ranked 42nd trade partner of EU in 2017 with total bilateral trade balance of 12.383 billion Euros. Pakistan's exports to EU countries were 6.690 billion Euros in 2017-18 which have increased by 6.2 per cent while imports from EU were 6.149 billion Euros showing an increase of 15.1 per cent against previous year.
The annual average growth rate of export and import is 10.2 percent and 12.5 per cent respectively for the period 2013-17.
The export of Pakistan's home textiles were 1.6825 billion Euros, followed by articles of apparel and clothing, not knitted or crocheted at 1.4843 billion Euros, articles of apparel and clothing, knitted or crocheted 1.2115 billion Euros, cotton, 649.3 million Euros and articles of leather 334.5 million Euros.
The imports from EU's were machinery and appliances 1.769 billion Euros, products of chemical and allied industries 911 million Euros, mineral products 764 million Euros, base metals and articles etc 711 million Euros and transport equipment 336 million Euros.
Early this year, the European Union had conveyed to Islamabad that renewal of GSP plus facility and future financial assistance in the pipeline will be linked to positive outcome on Asyia Bibi, a Christian woman facing death in a blasphemy case; her appeal was recently heard by the Supreme Court of Pakistan.
According to the EU, enforced disappearances and extra-judicial killings remain a grave concern and there has been an increase in the number of cases reported by human rights organisations in the past two years.
The government has not taken effective action to address the widespread use of torture. The application of the death penalty and executions remain a grave concern while a review of the crimes carrying the death penalty would be a welcome first step in the right direction.
On January 19, 2018, European Commission released a report (2016-17) on Pakistan's compliance with 27 UN conventions where Pakistan is required to be compliant for grant of GSP+ status. Lack of compliance is noted on account of UN Conventions for Discrimination against Women and Convention on Climate Change. Concerns have also been noted on extrajudicial killings, enforced disappearances, freedom of expression etc.
The sources said, Pakistan's imports from the EU countries have also increased by 60 per cent from 2014 to 2017. However, the EU is unhappy with Pakistan for imposing Regulatory Duties (RD) on imported items which could have negative impact on EU exports to Pakistan.
"GSP plus although a non-reciprocal arrangements of EU, has been beneficial for promoting exports of EU member states to Pakistan as well,' the sources continued. The existing trade arrangements between Pakistan and EU, though are mutually beneficial, yet there still exists room to further boost the bilateral trade arrangements by tapping upon unexplored and untested industries including commercial flights, the European automobile industries to explore possibilities of assembling plants in Pakistan.
The sources said European financial sector can also consider the option of introducing themselves in Pakistan that would act as a gate way for European investment into Pakistan and provide necessary confidence of customers and consumers for swift transfer of funds from one geographical point to another.