What Losing GSP+ Status From EU Could Mean to Pakistan?

European Union (EU) is concerned over human rights violations, freedom of the press, and violations of minority rights and enforced disappearances in Pakistan and a resolution was tabled in the European Parliament to review its GSP+ status.

If the resolution is passed, there could be different kinds of pressures developed upon Pakistan to abide by various human rights obligations and to abolish the death penalty.

The resolution also seeks alteration in the death penalty law and especially for blasphemy against the Prophet (P.B.U.H).

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The resolution would also integrate laws in Pakistan to end enforced disappearances, and for journalist protection and freedom of the press.

The government of Pakistan has not been formally informed about the resolution and its details.

Commerce Ministry officials told News360 that the EU had not provided any written information in this regard. Therefore, the ministry cannot take a clear position on the matter.

Experts in the textile sector say that if the GSP+ facility for exports to European markets is abolished for Pakistan, the exports will suffer.

As per an estimation, Pakistan exports $3 billion worth of textiles to the European market while it imports goods worth $3 to 3.5 billion from it as well.

If bilateral trade is affected, both sides will suffer equally. However, Pakistan’s losses will be greater because European countries have an alternate to buy textile products from India and Bangladesh.

Trade experts say that Pakistan’s market is not very attractive for European countries and the impact of $3 to 3.5 billion on exports will not be a significant loss to European countries.

Pakistan’s trade with and France

Pakistan’s exports from July to March in fiscal year 2020-21 stood at $330 million, which was $327 million in the same period last fiscal.

In contrast, France has provided $253.7 million worth of products to Pakistan. In FY 2019-2020, Pakistan exported goods worth $422.1 million to France whereas, in FY2019, $443.5 million worth of goods were sold.

In contrast, France sold goods worth $356.1 million to Pakistan in FY2020 and $401.9 million in FY2019.

Pakistan’s trade with Germany

Pakistan exported $1.133 billion worth of goods to Germany from July to March, compared to $1.359 billion in the same period last fiscal year.

In contrast, Germany’s exports to Pakistan from July to March this fiscal year stood at $796 million, which rose from $753.7 million in the previous fiscal year.

Pakistan’s trade with Spain

In the current financial year, Pakistan exported $595.2 million worth of goods to Spain from July to March, compared to $685.2 million in the same period last fiscal.

In contrast, Spain sold $138.9 million worth of goods to Pakistan from July to March in FY2020, compared to $155.2 million in the same period in FY2019.

Pakistan’s trade with the Netherlands

Pakistan exported $830 million worth of goods to the Netherlands from July to March, which stood at $776.4 million in the same period last year.

In contrast, the Netherlands sold goods to Pakistan worth $374.9 million from July to March this fiscal year, compared to $259.5 million in the same period last year.

Pakistan’s trade with Italy

During the current financial year, Pakistan exported $558.3 million worth of goods to Italy from July to March, compared to $592 million of exports in the same period last year.

In contrast, Italy sold goods to Pakistan worth $391 million from July to March this fiscal year, compared to $432.3 million in the same period last year.

Pakistan’s trade with Denmark

Pakistan exported $177 million worth of goods to Denmark from July to March, compared to $160 million’s worth of export in the same period last fiscal year.

In contrast, Denmark sold $59.4 million worth of goods to Pakistan in the July-March period of the current financial year, compared to $58.5 million in the same period last year.

Pakistan’s trade with Belgium

Pakistan exported $417.6 million worth of goods to Belgium from July to March during the current financial year in comparison to $403.9 million in the same period last year.

In contrast, Belgium sold goods worth $411.7 million to Pakistan from July to March this fiscal year, compared to $403.9 million in the same period last year.

Pakistan’s trade with Sweden

Pakistan exported $146.5 million worth of goods to Sweden from July to March, compared to $101.7 million in the same period last fiscal.

Sweden, on the other hand, sold goods worth $199.6 million to Pakistan from July to March this fiscal year, compared to $129.8 million in the same period last year.

Pakistan’s trade with Ireland

During the current financial year, Pakistan sold $565 million worth of goods to Ireland from July to March, compared to $50 million in the same period last financial year.

In contrast, Ireland sold $33.1 million to Pakistan from July to March this fiscal year, compared to $33.4 million in the same period last year.

Moreover, Pakistan’s average export to Austria, Bulgaria, Hungary, Cyprus, Czech Republic, Finland, and other European countries count make less than $50 million.