The European Union has informed Pakistan that Islamabad’s admission in the upcoming 10-year GSP+ program will not be influenced by its position on the Russia-Ukraine crisis. We won’t penalize any nation for its position regarding the Russian invasion of Ukraine, a western diplomat said while requesting anonymity.
The West, especially the United States, put pressure on Pakistan to vehemently denounce the Russian invasion. Imran Khan, a former prime minister, said that the US had engineered his dismissal as retaliation for taking an independent stance on the Russia-Ukraine problem.
Overall, Pakistan’s stance has changed slightly since the new administration entered office, but Islamabad continues to strike a difficult balance. There have been worries that the 27-nation bloc would penalize those nations not backing their position on the Ukraine war since the Russian incursion has put Europe’s security in jeopardy.
Pakistan in particular was concerned that the GSP+ extension process might become difficult.
However, a western diplomat made it clear that “political concerns” will not be used to assess Pakistan’s GSP+ case. Instead, the choice would depend on how well Pakistan has implemented the 27 international treaties to which Islamabad was a signatory.
A recent assessment of Pakistan’s compliance with the 27 international conventions was conducted by a European Union monitoring mission made up of representatives from the European External Action Service (EEAS) and the Directorates-General for Trade and Employment, Social Affairs and Inclusion of the European Commission.
The GSP+ (Generalized Scheme of Preferences Plus) offers extensive tariff preferences for imports into the EU from weak developing nations in order to support their participation in the global economy, sustainable development, and the eradication of poverty. It also serves to strengthen good governance.
For 66% of the tariff lines, eligible nations like Pakistan can export goods to the EU market duty-free. This advantageous status is contingent on GSP+ nations making real strides in putting 27 international treaties on things like human and labour rights, environmental protection, combating climate change, and good governance into practise.
According to a statement made here by the EU mission, GSP+ has greatly benefited Pakistani businesses, who have seen a 65 percent increase in exports to the EU market since the nation joined GSP+ in 2014. Pakistan’s main market is the European Single Market, which has about 440 million consumers. Pakistan exports clothing, bed linen, terry towels, hosiery, leather, sporting goods, and surgical items valued EUR 5.4 billion (about PKR 1.2 trillion).
The government, the UN Country Team, the International Labor Organization (ILO), business and civil society groups, as well as other stakeholders, were all invited to meetings by the EU monitoring team. The mission’s conclusions will be included in the upcoming GSP report, which is scheduled to be delivered to the European Parliament and Council by the end of 2022.
Regular monitoring missions are dispatched by the EU to assess the situation on the ground and to submit their findings to the European Parliament and the EU Member States in the Council in a report that is made public. Three biennial evaluations have already been completed, in 2016, 2018, and 2020.
Aside from Pakistan, Bolivia, Cabo Verde, Kyrgyzstan, Mongolia, the Philippines, Sri Lanka, and Uzbekistan are the other countries that the EU unilaterally offers GSP+ tariff discounts to. In December 2023, the current GSP framework will come to an end. The legislative effort to replace it from 2024 to 2033 is still going on.
Mahnur is MS(development Studies)Student at NUST University, completed BS Hons in Eng Literature. Content Writer, Policy analyst, Climate Change specialist, Teacher, HR Recruiter.
