Pakistan asks EU to relax terms for GSP scheme

Pakistan is lobbying the European Union (EU) to relax its conditions in the new Generalised Scheme of Preferences (GSP) scheme, which provides preferential treatment for many exporting countries including Pakistan.

The 27-nation bloc has proposed 11 new conventions for inclusion in the new GSP scheme, which may be difficult for countries like Pakistan to comply with and implement.

Pakistan’s Ambassador to Italy Jauhar Saleem, while speaking at a virtual press conference, revealed that the new GSP scheme was currently being debated in the EU parliament.

The European Commission has proposed six more conventions – related to environment and labour rights – in addition to the existing 27 conventions. The EU parliament intends to add five more conventions mainly focusing on human rights.

“Thus, for the new GSP scheme, 11 new conventions are under discussion along with some procedural changes,” the ambassador said.

The government of Pakistan and Pakistan’s ambassadors in the EU are engaging in talks with the members of EU Parliament, especially members of international trade, foreign affairs and human rights committees as well as EU Parliament’s group heads.

Similarly, they are focusing on government officials and civil society organisations in their respective host countries so that Pakistan’s feedback as a beneficiary of the existing GSP Plus scheme is conveyed to the quarters concerned.

The 4th Biennial Review is in progress. Pakistan expects an EU Commission’s monitoring visit this summer and then the mission will submit its report to the Commission. The review is expected to be concluded by December this year.

The ambassador expressed optimism about the outcome of the review, adding that the new GSP scheme was being debated in the EU Parliament and the embassy was engaging Italian members of the European Parliament, especially of trade and foreign affairs committees, so that Pakistan’s feedback as a beneficiary of the existing scheme was reflected in parliamentary debates.

He also said that Italy was set to become $1 billion export market for Pakistan this year. Italy has also become the number one contributor to workers’ remittances for Pakistan among EU members.

Saleem revealed that Pakistan posted a trade surplus of $372 million during July-March of financial year 2021-22, which was 65% higher than the previous year.

The ambassador told the media that Pakistan’s exports to Italy reached an all-time high of $805 million in the first nine months of current financial year. “Value-added sectors were the main drivers of this growth, which produced a trade surplus of $372 million.”

Published in The Express Tribune, April 29^th, 2022.

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