March 5, 2020: The UK Government is developing its own scheme for the Generalized System of Preferences (GSP) to become effective from January, 2021 after completion of the transition period for Brexit.
Additionally, the UK is also undertaking a review of its current MFN tariff regime for its further rationalization. They have sought inputs from Pakistan for designing of the new scheme which will maintain the current level of preferential access available to Pakistan under the EU’s GSP/ GSP Plus scheme.
To obtain stakeholders’ inputs the TDAP today organized a consultative session with concerned trade bodies and exporters at its offices in Karachi to develop recommendations for making the new UK GSP scheme more user-friendly, improving trade between the UK and Pakistan, and address any issues being faced on the Pakistan side under the current EU-GSP scheme.
During the consultative session-specific areas relating to the GSP regime and MFN tariffs as well as avenues for improving overall trade and cooperation between the UK and Pakistan were covered. This included broad parameters for the new GSP scheme and MFN tariff rationalization, origin certification system and rules of origin, standards and compliances, and possible avenues for improving trade with the UK which the third largest export destination for Pakistan’s products.
The TDAP is planning to hold similar consultative sessions with trade bodies and exporters during the next week on 9th, 10th, and 11th March 2020 at Lahore, Faisalabad and Sialkot, respectively.