A European Union mission on the Generalised Scheme of Preferences-Plus (GSP+) will visit Pakistan next month, as the fourth biennial review (2020-21) of the EU incentive was under way, the commerce ministry said on Wednesday.
The EU’s ‘Special Incentive Arrangement for Good Governance and Sustainable Development’ is a pivotal mechanism for improving economic relations between Pakistan and the continental bloc, whereby Pakistan is given zero-rated tariff preferences on almost 91% of tariff lines to the EU market.
On September 22, the EU published a new proposed legislation for the GSP+ scheme, adding 5 more conventions to the 27 United Nations conventions. It means that now all countries, including Pakistan, will have to comply with 32 international conventions.
The EU carries out the review every two years to ensure the commitment of the beneficiary countries to effectively implement the UN conventions. So far, three successful biennial reviews have been concluded in 2016, 2018 and 2020, respectively.
According to the ministry statement, Pakistan has answered the biennial review questions on the GSP+. It is believed that the review will be successfully completed due to positive government actions. The ministry said that the five new international conventions were in line with the government’s priorities.
Read Pakistan not given blanket GSP Plus extension
GSP+ incentive provides many Pakistani export-oriented products, including garments, bedlinen, terry towels, hosiery, leather, sports and surgical goods etc a duty-free access to the EU market. Pakistan exports more to the EU member countries than any other county in the world.
“EU is our biggest export partner and we have excellent relations with all EU member states. If you see our exports country-wise, EU member countries will be in the top 10 export destinations,” Razak Dawood, the prime minister’s adviser on commerce, said in the statement.
“As the fourth biennial review of GSP+ incentive is currently under way, I am confident that due to the positive initiatives by the government it will be successfully completed. The five new international conventions in the new GSP scheme are in line with government’s priorities,” he added.
The adviser pointed out that the government had already been taking steps to ensure labour rights, child rights and rights of the persons with disabilities. “I can assure that the government of Pakistan is already committed to the cause.”
On the Paris Agreement on Climate Change, Dawood said that Pakistan had joined the international community in celebrating the “World Environment Day 2021”, as its global host on June 5, which witnessed the formal launch of ‘United Nations Decade on Ecosystem Restoration 2021-2030’.
He added that the legislative proposal for the new GSP scheme would be submitted to the European Council and parliament. Once the European Council and parliament adopted the new scheme, Pakistan would have to file a new application for the new GSP scheme and implement the 32 conventions.
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