Pakistan faces fresh EU scrutiny over GSP+ trade benefits
New Delhi, July 27
Pakistan is facing renewed pressure over its continued access to the European Union's Generalised Scheme of Preferences Plus trade benefits, with the latest monitoring report raising serious concerns over the country's human rights record, governance standards and implementation of international commitments, according to a report.
A report published in Business Recorder flagged persistent issues relating to the rule of law, freedom of expression, enforced disappearances, judicial independence and accountability, casting fresh uncertainty over Pakistan's eligibility for the revised GSP+ framework that will come into effect from 2027.
The European Union's observations come at a time when Pakistan's fragile economy has become increasingly dependent on the preferential trade arrangement, it added.
Since joining the GSP+ scheme in 2014, Pakistan has enjoyed tariff-free or preferential access to the EU market, exporting goods worth 7.5 billion euros under the programme in 2024 alone.
The tariff concessions are estimated to have been worth around 732 million euros, according to the report.
The latest review assumes greater significance as Pakistan continues to struggle with weak export growth, subdued foreign investment and heavy dependence on remittances to support its external sector.
With exports failing to diversify and competitiveness remaining weak, analysts warn that any disruption to GSP+ benefits could severely impact the country's already stressed economy, particularly its textile sector, which relies heavily on the European market.
In addition, the report stressed that preferential market access under GSP+ is conditional upon compliance with international conventions and is not an unconditional or permanent arrangement.
It further noted that Pakistan has repeatedly come under scrutiny during previous review cycles, with concerns resurfacing over its implementation of commitments accepted under the scheme.
The revised GSP+ regime from 2027 is expected to place even greater emphasis on measurable compliance, increasing the risk for countries that fail to address governance and human rights concerns.
The report also warned that Pakistan cannot indefinitely rely on preferential trade concessions while delaying structural reforms needed to make its export sector globally competitive.
It said the country's continued dependence on a narrow export base and limited markets leaves it highly vulnerable if preferential access to the EU is curtailed.
— IANS
Reader Comments
Of course, the EU is finally waking up. Their complicity in ignoring Pakistan's poor human rights record for years has been shocking. Enforced disappearances, lack of press freedom, and now they're worried about losing preferential access? Actions have consequences.
I'm curious how this will play out. Pakistan's textile industry is heavily reliant on this scheme. Without EU access, they'll struggle even more. Maybe this is a chance for Indian exporters to step up in the European market? Business opportunities and ethical concerns align here.
This is a double-edged sword. While Pakistan deserves scrutiny, the EU's selective application of standards has always been questionable. They ignore similar issues in countries with stronger trade leverage. Nevertheless, if Pakistan loses these benefits, it's their own governance failure. Time for them to reform.
A well-deserved wake-up call. Pakistan's economy is in shambles, and they keep postponing structural reforms. The EU's GSP+ should be conditional, not a free pass. Let's see if this finally pushes them to improve rule of law and governance. Otherwise, India remains the preferred partner in the region.
Honestly, the EU should have done this years ago. Pakistan's human rights abuses are well-documented—targeting minorities, suppressing media, and enforced disappearances. If they lose GSP+, it's a natural outcome. Indian products can easily fill the gap, especially in textiles. Good riddance.
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