EU envoy urges businesses to take advantage of new GSP+

KARACHI:

European Union (EU) Ambassador Raina Kionka has encouraged businessmen to diversify their exports to the EU to maximize the benefits of GSP Plus for Pakistan. The GSP Plus regime was recently extended for another four years, until 2027.

Speaking during a meeting at the Karachi Chamber of Commerce and Industry (KCCI), Kionka highlighted the significant impact of GSP Plus on Pakistan’s economy. “The importance of GSP Plus to Pakistan’s economy extends beyond textile producers, benefiting all individuals working in textile factories through the reduction of the phenomenon. Over the past decade, GSP Plus has played a key role, proving its positivity and economic utility. It has contributed to a remarkable 108% increase in Pakistan’s exports to the EU, with EU imports also increasing by 40% since the start of this programme.”

Kionka confirmed that the GSP Plus status for Pakistan has been extended without changes to the rules framework, maintaining the current conditions until 2027. She noted the upcoming elections in June 2024, expecting political changes in the EU Parliament and Commission. dust settles, we expect the new Parliament and Council of EU member states to restart negotiations on a new GSP Plus Directive with Pakistan, a process that was stalled last year. Despite the current four-year rollback for GSP Plus, the introduction of a new regulation could come into force before 2027.”

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Identifying potential sectors such as gems and jewellery, tourism, handicrafts and auto parts under GSP Plus, the EU Envoy pointed out that although 28% of Pakistan’s exports go to the European single market, there is room for growth. The EU Delegation in Islamabad is actively working to boost Pakistan’s exports using GSP Plus more effectively. This includes diversifying exports, investing in added value, adopting new technologies and IT solutions for better access to the EU market and engaging Small and Medium Enterprises (SMEs).

Kionka announced the EU’s plans to create a platform to promote business-to-business relations between the EU and Pakistan. The platform aims to facilitate connections between SMEs in Pakistan and businesses in the EU, ensuring that SMEs in Pakistan can take full advantage of GSP Plus. Earlier, KCCI President Iftikhar Ahmed Sheikh urged the EU ambassador to arrange for the participation of a business delegation in the ‘KCCI’s My Karachi-Oasis of Harmony’ International Exhibition scheduled for August 2024.

Published in The Express Tribune, January 10^u2024.

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