Pakistan must ratify 5 conventions for continuity of GSP-Plus status: EU envoy

FAISALABAD: The European Union’s ambassador to Pakistan, Dr Riina Kionka, has said that EU-Pakistan relations have a strategic aspect that covers all the relevant areas, including counterterrorism, trade, climate change, and GSP-Plus status. The GSP-Plus status holds significant importance for Pakistan’s economy as it has played a vital role in expansion of multilateral trade.

She was speaking at a meeting at the offices of Pakistan Textile Exporters Association (PTEA) here on Thursday. She said that the GSP-Plus scheme is going to end next year and a mission is preparing a final report on the last 10 years, which will be discussed in Brussels and the EU Parliament.

These two key bodies will decide about the continuation of the scheme. Pakistan will have to re-apply for the GSP-Plus status and the decision will be taken by the EU Parliament in four to five months. During this period of application, Pakistan will be enjoying all the facilities under the GSP-Plus status, she added.

She said that continuity of the GSP-Plus status is subject to ratification of five to six new conventions related to environment and social standards, in addition to the remaining 27.

She was of the opinion that the existing GSP-Plus scheme is confined to textile sector, but it should be expanded to the other sectors as well.

Turning to the recent floods, she said that it is a difficult time for Pakistan and that the EU member countries have distributed aid in several flood-affected areas. Pakistan needs to develop the required infrastructure in order to curtail losses in case a catastrophe-like situation emerges in future as well, she added.

Earlier, PTEA’s Patron-in-Chief Khurram Mukhtar praised the European Union for taking robust measures to support Pakistan’s economy and extending financial assistance as well as in-kind assistance to flood victims.

Describing GSP-Plus status as a “major turnaround”, he said that duty-free access to the European market has not only enhanced Pakistan’s market share in it but exports to EU have also jumped by 86 percent from €3.56 billion in 2013 to €6.64 billion in 2021.

The textile export sector, the major beneficiary of the duty waiver facility, also gained significant momentum, he said. Increased multilateral trade through GSP-Plus means job creation, better working conditions, promotion of sustainable policies and improvement of the macro-economic indicators of Pakistan. In this context, the extension of GSP-Plus status holds great significance for the Pakistani economy.

Chaudhry Shahid Nazir, a leading exporter, said that textile exporters are aware that the EU is continuously monitoring conditions in the GSP-Plus beneficiary countries regarding implementation of 27 international conventions, especially on human rights, labour rights, environmental protection, and good governance.

He was of the view that the European Union has also benefited from the GSP-Plus scheme as it has enabled businesses in EU to import high-quality textile items from Pakistan at competitive prices. On the other hand, Pakistan’s imports from EU have also increased from $4.4 billion in 2013 to $6.4 billion in 2021 as the textile industry has been importing machinery from the EU.

A large number of textile exporters, including former PTEA chairman Muhammad Ahmad, former vice chairman Muhammad Naeem, Ameer Ahmad and executive member Rana Zahid Touseef were also present on the occasion.

Copyright Business Recorder, 2022