The European Commission on Wednesday extended the Generalized Scheme of Preference-Plus (GSP+) status for Pakistan till end of 2023.
The EC retained Pakistan in its preferential trade access scheme as it found no grounds to exclude the country from the continental bloc. Earlier, the European Parliament had passed two resolutions asking the European Commission to review the Generalised Scheme of Preference-Plus (GSP+) status.
The commission made the announcement on Wednesday from Brussels, Belgium.
The EC reportedly reviewed the status of numerous countries for the extension of the preferential status. Pakistan’s individual status was not discussed in the meeting, the media reports claim.
EC reportedly adds six new conventions
The commission has reportedly attached six new conventions, mostly related to climate change, eradication of child labor and greater accessibility for physically challenged people. The EC proposed that developing countries that wish to thrive from access to the European markets must uphold environmental and governance standards and stick to extra commitments on human and labor rights.
European Parliament passed resolutions to review Pakistan’s GSP+ status
Since April this year, the European Parliament has passed two resolutions with a vast majority to review GSP+ status of Pakistan, especially after the latest developments in Afghanistan. However, the resolutions could not convince the EC to suspend Pakistan’s GSP+ status.
Pakistan, under the incumbent government, has shown greater commitment to climate change and its latest drive can facilitate the new conditions of the commission.
According to the statement issued by the commission, a group of countries including Pakistan and The Philippines was offered GSP+, with zero tariffs on two-thirds of products. These countries implement 27 UN conventions on human and labor rights, the environment and good governance.
Pakistan’s GSP+ status
Pakistan was granted GSP+ status in 2014. Under the preferential status, Pakistan enjoys a reduction in rates of duties and taxes by the European countries. This helped Pakistan to increase its exports by 1 billion to 1.5 billion euros a year since 2014, as EU is Pakistan’s first export destination, comprising for about 34% of the country’s total exports in 2018, followed by the United States.