The European Union (EU) is currently deliberating on whether to extend Pakistan’s Generalized Scheme of Preferences Plus (GSP+) status. As a potential backup plan, the European Commission has suggested extending Pakistan’s GSP+ status for another four years.
The current status is set to expire at the end of this year. While the EU has already passed new laws to extend the scheme for a decade, a standoff has emerged between the EU Council and the EU Parliament regarding the inclusion of migration as a condition for the GSP+ scheme.
A European official has acknowledged that the upcoming conditions may pose challenges for Pakistan. The proposed extension of the current regulation for GSP+ implies that there will be no immediate changes for Pakistan. Consequently,
Pakistan will continue to enjoy the same preferential trade access to the European market. However, it is crucial for Pakistan to fulfill its obligations in effectively implementing the 27 international human rights, labor rights, environmental, and governance conventions.
Additionally, the EU will continue to monitor any potential backsliding and provide reports to the European Parliament and member states.
It is important to note that the extension of the current regulation is not specific to Pakistan alone but applies to all eight beneficiary countries of GSP+.
The primary objective here is to avoid a disruptive scenario at the end of the year that nobody desires, especially the European Union. Such a disruption would result in a sudden halt to the trade preferences, adversely affecting Pakistani exporters, factory workers and their families, European businesses relying on Pakistani suppliers, and ultimately European consumers.
A forthcoming report on the GSP+ monitoring mission, expected to be released soon, will shed light on the current state of affairs. While it is premature to speculate on its exact findings, previous monitoring missions have highlighted areas where the EU seeks improvements.
These areas include freedom of expression, freedom of the media, freedom of religion and belief, the situation of minorities, women’s rights, gender equality, and labor rights.
The GSP+ scheme plays a pivotal role in promoting trade and economic cooperation between Pakistan and the EU. It grants Pakistani exporters preferential access to the European market, enabling them to compete more effectively. It also supports economic growth, job creation, and poverty reduction in Pakistan.
Pakistan has made substantial progress in fulfilling its obligations under the GSP+ scheme since its initiation in 2014. The scheme has contributed to improvements in various areas, including human rights, labor standards, and environmental protection. However, the EU continues to emphasize the importance of sustained progress and reforms in the aforementioned areas.
The EU’s consideration of extending Pakistan’s GSP+ status reflects the mutual benefits derived from the scheme. It highlights the EU’s recognition of Pakistan’s efforts and the potential for further cooperation. By extending the GSP+ status, the EU demonstrates its commitment to supporting Pakistan’s economic development and reinforcing bilateral ties.
In conclusion, the EU is currently contemplating extending Pakistan’s GSP+ status for an additional four years. This extension would provide continuity and stability for Pakistani exporters, workers, European businesses, and consumers. While there are ongoing discussions within the EU regarding the inclusion of migration as a condition, the objective remains to ensure a smooth transition and avoid any abrupt disruptions to the GSP+ scheme.
The EU’s monitoring and reporting mechanisms will continue to promote progress and improvements in various areas, fostering human rights, labor rights, and environmental protection. The potential extension of Pakistan’s GSP+ status signifies the shared commitment between the EU and Pakistan towards enhancing trade relations and fostering sustainable development.
