Association welcomes redesign in GSP scheme
EU import threshold reforms positive development for Pakistan’s economy.
KARACHI:
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has welcomed the decision of the European Union (EU) to redesign its Generalised System of Preferences (GSP) for the GSP-Plus scheme.
In a statement on Monday, PRGMEA Zonal Chairman Atiq A Kochra said that it was a positive development for the Pakistani economy. The GSP-Plus, which was launched in 2006, is an incentive scheme for especially vulnerable countries that have ratified and effectively implemented key international conventions on sustainable development, labour rights and good governance. The GSP-Plus scheme covers around 7,200 products.
“This will improve the sustainability of our manufacturing sector and will create additional businesses and job opportunities,” Kochra said. PRGMEA has long maintained that getting the GSP-Plus status is absolutely essential for the survival of Pakistan’s manufacturing industry, he added.
Talking to The Express Tribune, PRGMEA Senior Research Analyst Ibrahim Mahmood said that the revised GSP-Plus scheme will increase the minimum EU import threshold from 1% to 2%, which meant that countries whose share in the total imports of the EU was less than 2% could apply for zero duty access on its exports under this scheme.
Mahmood said that Pakistan’s exposure in the total EU imports was between 1% and 2%. Therefore, Pakistan will directly benefit from the federation’s decision to revise the import threshold if the government ensures compliance with the conventions required for the scheme, he said.
These conventions include the environment, human and labour rights, and good governance, amongst others, which are particularly difficult to implement and substantiate.
“Even after Pakistan qualifies for the GSP-Plus, the government will have to continually show improvement in its performance on these conventions. Otherwise, the GSP benefits can be suspended,” it said.
Kochra also called for the constitution of a high-level task force which will review progress, analyse possible obstacles and take appropriate actions to counter any negative campaigning by Pakistan’s competitors.
Published in The Express Tribune, June 19th, 2012.
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has welcomed the decision of the European Union (EU) to redesign its Generalised System of Preferences (GSP) for the GSP-Plus scheme.
In a statement on Monday, PRGMEA Zonal Chairman Atiq A Kochra said that it was a positive development for the Pakistani economy. The GSP-Plus, which was launched in 2006, is an incentive scheme for especially vulnerable countries that have ratified and effectively implemented key international conventions on sustainable development, labour rights and good governance. The GSP-Plus scheme covers around 7,200 products.
“This will improve the sustainability of our manufacturing sector and will create additional businesses and job opportunities,” Kochra said. PRGMEA has long maintained that getting the GSP-Plus status is absolutely essential for the survival of Pakistan’s manufacturing industry, he added.
Talking to The Express Tribune, PRGMEA Senior Research Analyst Ibrahim Mahmood said that the revised GSP-Plus scheme will increase the minimum EU import threshold from 1% to 2%, which meant that countries whose share in the total imports of the EU was less than 2% could apply for zero duty access on its exports under this scheme.
Mahmood said that Pakistan’s exposure in the total EU imports was between 1% and 2%. Therefore, Pakistan will directly benefit from the federation’s decision to revise the import threshold if the government ensures compliance with the conventions required for the scheme, he said.
These conventions include the environment, human and labour rights, and good governance, amongst others, which are particularly difficult to implement and substantiate.
“Even after Pakistan qualifies for the GSP-Plus, the government will have to continually show improvement in its performance on these conventions. Otherwise, the GSP benefits can be suspended,” it said.
Kochra also called for the constitution of a high-level task force which will review progress, analyse possible obstacles and take appropriate actions to counter any negative campaigning by Pakistan’s competitors.
Published in The Express Tribune, June 19th, 2012.