ISLAMABAD: The European Union’s (EU) new proposed ten-year (2024-34) GSP (Generalized Scheme of Preferences) is reportedly hanging in the balance due to deadlock between the European Parliament and the European Council, well-informed sources told Republic policy.
The sources added that Both the EU Parliament and European Council have strong arguments against each other’s viewpoint, due to which things are not moving.
“Since the term of EU Parliament will be over in September 2023, if issues are not sorted out by then, new GSP will not be in place, and there are chances that the duration of the existing scheme will be extended for a few years as the new Parliament will take some time to understand all the issues,” the sources added.
The European Council traditionally defines the EU’s overall political direction and priorities by adopting conclusions. It does not negotiate or adopt EU laws.
Pakistan has extensively lobbied for the new scheme and made all efforts to comply with the 27 Conventions.
According to the United Nations COMTRADE database on international trade, European Union imports from Pakistan were $9.94 billion during 2022; European Union Imports from Pakistan – data, historical chart and statistics – were last updated in June of 2023.
An analysis was conducted by the Friedrich Naumann Foundation of Pakistan’s bilateral trade with the EU in 2007-2013 and 2014-2022.
The findings indicate that Pakistan’s exports to the EU have increased from an aggregate USD 37 billion (2007-13) to an aggregate USD 66 billion (2014-2022) compared to its exports to the world, i.e., from an aggregate USD 150 billion to USD 217 billion in the same period.
After the expiry of GSP Plus in December this year, the new GSP Scheme (2024 -34), the European Union will start a new GSP scheme (2024- 34) announced on September 22, 2021.
The new proposed scheme aims to improve key features of the system to better respond to the evolving needs and challenges of GSP countries and reinforce the scheme’s social, labour, environmental and climate dimension. It will be in place for ten years. There is an expansion in the list of International Conventions from 27 to 32 that beneficiary countries must ratify and implement.
