Naveed Hussain

The European Union’s Generalised Scheme of Preferences Plus (GSP+) is an incentive program designed to encourage sustainable development and good governance in developing countries. The European Union’s Generalised Scheme of Preferences Plus (GSP+) is a trade incentive program specifically designed for developing countries. It offers these countries preferential treatment in the form of significantly reduced or zero import duties on a large portion of their exports to the EU market.

GSP+ is more than just given out. To qualify, a country needs to meet strict criteria set by the EU.

These criteria focus on two main areas:

• Sustainable development and good governance: This means a strong commitment to human rights, labor rights, environmental protection, and good governance practices. This is demonstrated by ratifying and effectively implementing a set of 27 international conventions related to these areas.
• Vulnerability: The EU aims to support developing countries most in need of a trade boost. So, the criteria also consider a country’s dependence on exports and its level of integration into the global trading system.

Importance of GSP+ for Pakistan:

For Pakistan, GSP+ status offers significant economic benefits. Under this program, the EU eliminates or significantly reduces import duties on over two-thirds of Pakistani exports. This makes Pakistani goods more competitive in the European market, potentially leading to increased exports, job creation, and economic growth. Therefore, Pakistan must develop its economy and produce more goods and services. However, Pakistan still needs to exploit the opportunity the European Union provided fully. 

Pakistan’s Compliance with GSP+ Conventions:

Pakistan has been a GSP+ beneficiary since 2014. However, maintaining this status requires an ongoing commitment to upholding the relevant conventions. The EU has raised concerns regarding Pakistan’s compliance in some areas, such as labor rights and freedom of expression.

To ensure continued GSP+ benefits, Pakistan must demonstrate concrete steps to address these concerns. This could involve strengthening labor laws, improving working conditions, and guaranteeing freedom of expression for its citizens.

Overall, GSP+ presents a valuable opportunity for Pakistan’s economic development. However, maintaining this status requires a sustained effort towards upholding the EU’s criteria and addressing any shortcomings in compliance.

The European Union has endorsed 27 international covenants to promote good governance and human rights and combat the challenges of war and climate change for countries that want to take advantage of GSP Plus. Here is the breakdown of the 27 covenants.

1. International Covenant on Civil and Political Rights: This treaty protects civil and political rights, such as freedom of speech and religion.

2. International Covenant on Economic, Social and Cultural Rights: This treaty ensures economic, social, and cultural rights, such as the right to work and education.

3. The International Convention on the Elimination of All Forms of Racial Discrimination prohibits racial discrimination in all its forms.

4. Convention on the Elimination of All Forms of Discrimination against Women: This treaty aims to end discrimination against women and promote gender equality.

5. Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment: Ban torture and other cruel, inhuman, or degrading treatment.

6. Convention on the Rights of the Child: This convention protects children’s rights to survival, development, protection, and participation.

7. Convention on the Prevention and Punishment of the Crime of Genocide: Criminalizes genocide and obliges states to prevent and punish it.

8. Convention on the International Elimination of All Forms of Racial Discrimination: Similar to #3, it aims to eliminate racial discrimination worldwide.

9. Convention on the Rights of Persons with Disabilities: This Convention ensures the rights and dignity of persons with disabilities.

10. International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families: This convention protects the rights of migrant workers and their families.

11. Convention on the Reduction of Statelessness: Seeks to prevent and reduce statelessness worldwide.

12. Rome Statute of the International Criminal Court: Establishes the International Criminal Court to prosecute individuals for genocide, war crimes, and crimes against humanity.

13. International Convention for the Suppression of the Financing of Terrorism: Criminalizes the financing of terrorism.

14. International Convention for the Suppression of Acts of Nuclear Terrorism: Aims to prevent nuclear terrorism through international cooperation.

15. United Nations Convention against Corruption: Combats corruption through preventive measures and criminalization.

16. Convention on Biological Diversity: This convention aims to conserve biodiversity, sustainably use its components, and share benefits fairly.

17. The Cartagena Protocol on Biosafety to the Convention on Biological Diversity regulates the movement of living modified organisms.

18. United Nations Framework Convention on Climate Change: Addresses climate change through international cooperation.

19. Kyoto Protocol to the United Nations Framework Convention on Climate Change: Commits industrialized countries to reduce greenhouse gas emissions.

20. Paris Agreement: Aims to limit global warming and mitigate climate change impacts.

21. Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal: Controls international movements of hazardous waste.

22. Convention on International Trade in Endangered Species of Wild Fauna and Flora: Regulates international trade in endangered species to ensure their survival.

23. Montreal Protocol on Substances that Deplete the Ozone Layer: Phases out the production and use of ozone-depleting substances.

24. Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade: Regulates hazardous chemicals and pesticides in international trade.

25. Stockholm Convention on Persistent Organic Pollutants: This convention bans or restricts the production and use of persistent organic pollutants.

26. United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa: Combats desertification and mitigates the effects of drought.

27. Convention on Access to Information, Public Participation in Decision-Making, and Access to Justice in Environmental Matters: This convention promotes transparency, public participation, and access to justice in environmental matters.

Therefore, Pakistan’s government must implement the treaties to which it is a signatory. This will provide trade opportunities and develop good government, human rights, and climate management standards. It is also important to note whether the Pakistani government is implementing all these treaties and to what extent. 

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