GSP Plus Status to Pakistan
GSP Plus status and its implication on Pakistan
Generalized Scheme of Preferences (GSP)
The EU’s "Generalized Scheme of Preferences" (GSP) allows developing country exporters to pay lower duties on their exports to the EU. This gives them vital access to EU markets and contributes to their economic growth.
Generalized Scheme of Preferences in a nutshell
There are three main variants (arrangements) of the scheme:
The standard GSP scheme, which offers generous tariff reductions to developing countries. Practically, this means partial or entire removal of tariffs on two thirds of all product categories.
The "GSP+" enhanced preferences mean full removal of tariffs on essentially the same product categories as those covered by the general arrangement. These are granted to countries which ratify and implement international conventions relating to human and labour rights, environment and good governance;
"Everything but Arms" (EBA) scheme for least developed countries (LDCs), which grant duty-free quota-free access to all products, except for arms and ammunitions.
Pakistan gets Generalized System of Preferences (GSP) Plus status from European Parliament now it can export without any duty to 28 countries of the Europe. The major boost will be to textile industry of Pakistan. It may be mentioned that 406 parliamentarians expressed their support for Pakistan and the status has been granted till 2017. Pakistan textile exports hover around $13 billion of which exports to EU stand at $5 billion. Pakistan is strong in the area of bed linen and home textiles.
APTMA foresees textile export from $13 billion to $26 billion in next few years, an investment of $1 billion annually, creation of one million direct and indirect jobs every year, addition of one percent to two percent to gross domestic product growth and doubling cotton crop from 13 million to 26 million bales.
The GSP Plus status has once again opened the door to Pakistan to balance its trade deficit, if
Generalized Scheme of Preferences (GSP)
The EU’s "Generalized Scheme of Preferences" (GSP) allows developing country exporters to pay lower duties on their exports to the EU. This gives them vital access to EU markets and contributes to their economic growth.
Generalized Scheme of Preferences in a nutshell
There are three main variants (arrangements) of the scheme:
The standard GSP scheme, which offers generous tariff reductions to developing countries. Practically, this means partial or entire removal of tariffs on two thirds of all product categories.
The "GSP+" enhanced preferences mean full removal of tariffs on essentially the same product categories as those covered by the general arrangement. These are granted to countries which ratify and implement international conventions relating to human and labour rights, environment and good governance;
"Everything but Arms" (EBA) scheme for least developed countries (LDCs), which grant duty-free quota-free access to all products, except for arms and ammunitions.
Pakistan gets Generalized System of Preferences (GSP) Plus status from European Parliament now it can export without any duty to 28 countries of the Europe. The major boost will be to textile industry of Pakistan. It may be mentioned that 406 parliamentarians expressed their support for Pakistan and the status has been granted till 2017. Pakistan textile exports hover around $13 billion of which exports to EU stand at $5 billion. Pakistan is strong in the area of bed linen and home textiles.
APTMA foresees textile export from $13 billion to $26 billion in next few years, an investment of $1 billion annually, creation of one million direct and indirect jobs every year, addition of one percent to two percent to gross domestic product growth and doubling cotton crop from 13 million to 26 million bales.
The GSP Plus status has once again opened the door to Pakistan to balance its trade deficit, if