Pakistan faces tougher scrutiny as EU reviews future GSP+ access: Report

New Delhi: The European Union has warned Pakistan that continued access to the lucrative GSP+ trade scheme is not guaranteed, citing concerns over compliance with international commitments as Islamabad prepares to seek entry into a stricter successor regime, according to a report.

A report published in Pakistan-based newspaper Dawn highlighted that EU Ambassador Raimundas Karoblis said Pakistan must address areas of concern highlighted by Brussels if it hopes to secure future preferential market access.

“The situation is not certain and GSP+ preferences cannot be taken for granted,” Karoblis said and noted that improvements would be important both for implementation of the current arrangement and for reapplying under the new framework, according to the report.

The existing EU Generalised Scheme of Preferences Plus (GSP+) will expire at the end of this year and be replaced by a new framework carrying tougher compliance requirements, it said.

Although current beneficiaries, including Pakistan will continue receiving preferences during a transition period until December 31, 2028, the extension does not constitute an automatic rollover.

Pakistan had experienced compliance shortcomings, regression in several areas and only limited positive progress.

The report cited concerns over enforced disappearances, extrajudicial killings, freedom of expression, minority and journalists’ rights, judicial independence, access to justice and forced labour.

There were serious doubts within the European Commission regarding effective implementation of the international conventions underpinning the scheme, though no decision had been taken on possible suspension of preferences, it added.

In addition, Pakistan has rejected aspects of the EU assessment and said it does not present a sufficiently balanced picture of the country’s performance.

The stakes are high for Pakistan which has benefited from the scheme since 2014.

In 2024, exports worth 7.115 billion euros utilised GSP+ preferences, while tariff exemptions amounted to nearly 732 million euros.

The EU accounts for about 28 per cent of Pakistan’s exports with textiles and clothing among the biggest beneficiaries.

Loss of preferential access could undermine the competitiveness of key export sectors in one of Pakistan’s most important markets, the report said.

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