Pakistan will get duty reduction of around 3.5 per cent in export of all products, except for textile and clothing, to the European Union (EU) member countries under new normal generalised system of preferences (GSP) scheme. The new EU GSP scheme is probably to be effective from April 1, 2005 instead of July to give maximum help to Tsunami hit countries particularly Sri Lanka.
Sources in Textile Ministry stated that under normal GSP scheme Pakistani exportable products would enjoy duty preferences of around 3.5 per cent on almost all products to the EU markets. However, for the clothing sector, the duty reduction would be in the range of 2.5 per cent under normal GSP scheme and for yarn and fabrics, the duty reduction in import duty would be in the range of 1.2 to 1.4 per cent.
Pakistan, however, would not get any preferences in duty on export of all varieties of rice, agricultural products, molasses and ethanol alcohol because all these products were placed in the sensitive list of the GSP scheme. Pakistan had done an extensive lobbying for getting access to the GSP plus scheme- zero rates of duty - but it was not materialised, source mentioned.
Sources mentioned that government was pondering over various proposals for increasing Pakistan's textile and clothing exports to EU following the failure to get an access to the GSP plus scheme.