The impact of GSP+ on bilateral trade, especially Pakistan's exports to EU was discussed. Adviser to PM appreciated the role of EU in the economic and social development of Pakistan by providing market access to EU market through GSP+ and investing in various sectors of the economy.
The ambassador stated that GSP+ provided a window of opportunity for Pakistani exporters in the EU market which can be exploited though product diversification, value addition and improved connectivity with business community on both sides. He further stated that EU companies are very keen to enhance investment in Pakistan owing to improved business environment. Pakistani products have duty free access in all 28-member states of the EU since January 1, 2014. This duty-free access is available under EU's "Special Incentive Arrangement for good governance and sustainable development", which is also popularly known as GSP+. On the other hand, Pakistan has to ensure implementation of 27-UN to enjoy preferential market access under GSP+. These conventions pertain to human rights, labor rights, environment protection and good governance. As a result of this arrangement, Pakistan's exports to EU have increased from 4.54 billion Euros in 2013 to 6.88 billion Euros in 2018 which constitutes an increase of 51.62 percent. This arrangement has helped Pakistani products compete successfully with similar products originating from other competing countries such as China, India and Bangladesh.
In 2018-19, the total trade volume between Pakistan and EU countries was 12.54 billion Euros, of which exports stood at 6.88 billion Euros compared imports of 5.66 billion.
In May 2019, Pakistan submitted report to the European Commission on ten suggestions for priority action and GSP plus Monitoring Mission's follow up questions. These include (i) ensuring freedom of expression, (ii) effectively addressing enforced disappearances and secret detention, (iii) securing an enabling environment for NGOs, (iv) adopting and implementing a comprehensive anti-torture law, (v) restricting application of the death penalty, (vi) enhancing rights of women and children, (vii) combating forced child labour, (viii) ensuring freedom of association, collective bargaining and occupation safety and health, (ix) strengthening cooperation with the United Nations and (x) enhancing institutional capacity and policy development.
Since GSP plus, Pakistan has witnessed substantial increase in exports in different sectors including garments, hosiery, home textiles, cotton fabrics, sports and surgical goods. Pakistan's exports in garments and hosiery have increase by 92 percent, home textiles by 72 percent and sports by 41.2 percent.
Adviser to PM informed the Ambassador that the incumbent government has taken a strategic decision to ease out the business regulations in Pakistan to attract foreign direct investment in the country, especially in export-oriented sectors. He urged the EU companies to invest in Pakistan to get the higher returns on their capital owing to business friendly policies of the government.
