Pakistan will not find it easy to obtain GSP Plus benefits from the European Union.

While Pakistan is struggling to comply with existing 27 EU conventions of GSP Plus, the EU plans to introduce some more conventions. These relate mainly to environment and social standards.

The GSP Plus status holds significant importance for Pakistan’s economy as it has played a key role in the expansion of multilateral trade.EU-Pakistan relations have a strategic engagement that covers all areas including counter-terrorism, trade, climate change, GSP Plus status and various others. Continuity of GSP Plus is subject to ratification of more than five to six new conventions related to environment and social standards including the remaining 27.

The existing GSP plus scheme is confined to the textile sector. The EU is the biggest market for Pakistan’s goods and accounts for about one-third of all exports from the country.GSP Plus has increased EU-Pakistan trade, which increased by 78 per cent in 2021 as compared to the year earlier. So GSP Plus has been very beneficial for Pakistan’s economy. It provides duty-free access to the huge EU market for textile and apparel and also provides an incentive structure to undertake reforms in the industry and country.