July 05, 2023 (MLN): The European Union (EU) is proposing to extend the current Generalised Scheme of Preference (GSP) for an additional four years as it is set to expire in 2023, as shown in a tweet by EU Trade.
The GSP Regulation removes import duties on products imported to the EU from vulnerable developing countries and contributes to poverty eradication.
Through this the GSP supports around 65 countries.
Pakistan's status
The EU monitoring team visited Pakistan and compiled the last assessment report on the Generalised Scheme of Preferences Plus (GSP+) for 2014-2023.
The report will highlight the country's performance with respect to human rights, labour standards, press freedom and environmental protection.
The GSP+ status allows Pakistan to export more than 78% of its products to the EU, which is the second most important trading partner accounting for 14.3% of the total exports in 2020 and 28% in 2021.
As a result, the GSP scheme has assessed pakistan to srengthen trade ties with the EU.
However, being a recipient country of the preferential scheme, it needs to ratify and implement 27 international conventions covering a broad range of human rights, labour standards and environmental protections, fulfilment of UN Treaty Body reporting obligations, and cooperation with the European Commission’s monitoring framework.
The GSP+ Assessment Report for 2018-2019 stated that Pakistan must demonstrate that it will concretely increase its efforts and take more proactive and sustained actions to implement legislation and to address problematic areas.
However, the Pakistani government is taking initiatives to comply with the 27 international conventions to extend the scheme, as a significant proportion of exports are tied with the EU.
