Summary The GSP Plus package of trade concessions, to be effective from January 1, 2014.
ISLAMABAD (Dunya News) - The European Union has granted Generalised Scheme of Preferences (GSP) Plus status to Pakistan.
The European parliament was considering the GSP+ package for 10 developing countries in all.
The EU Parliament’s International Trade Committee has voted 17-12 in favour of Pakistan’s inclusion in the scheme for duty-free access to European markets.
Under the GSP Plus scheme, EU would eliminate or reduce import duties on several Pakistani products, including textile and clothing products, which would greatly help the country to boost its exports.
The scheme is expected to give a major boost to Pakistan’s exports to Europe, especially the textile and apparel exports.
At present, Pakistan’s textile exports to the EU markets attract 11 percent duty, which makes it difficult to compete with other countries like Bangladesh, which enjoy tariff benefit for exports to the EU.
The All Pakistan Textile Mills Association (APTMA) expects the GSP Plus status to double the country’s textile exports to US$ 26 billion from the current US$ 13 billion over a four-year period.
In fiscal year 2012-13, the EU accounted for about 25-30 percent of all textile and garment exports from Pakistan.
