GSP Plus Status for Pakistan


Recently EU has granted GSP plus Status to Pakistan. According to which Pakistan will enjoy Duty Free Trade with 27 EU countries from 1st January, 2014 for Three year period till 2017.
Pakistan has been struggling for GSP Plus status since many years. GSP Plus status is not specific to a country, but any country which could qualify the terms and conditions of EU Scheme, could attain enjoy these facilities. Today 39 countries can qualify for GSP Plus status but only 7 are enjoying, other 32 have to strictly obey the 27 laws of EU including 16 Human Rights Laws.
The main condition for this facility is that; total exports of any country should be less than the total exports of the EU i.e. not more than 1%. But previously Pakistan exports were 1.5 % of Total EU Exports. On special request of Pakistan (Specially PPs Govt, and current Governor Punjab Ch Muhammad Sarwar who have been member of EU Parliament) EU amended its laws and relaxed the condition to 2%.
On 12th December 2013 a bill was presented in the parliament and passed with 409 votes out of 766 total votes.
EU is Pakistan’s Largest Trade Partner with volume of € 8.2 billion trade in 2012.
Textile industry of Pakistan will be benefited most. Previously Pakistan had to pay 9.6% duty on her imports and could only export 150 items to EU markets, but now it will export 6000 items which is an increase of about 13%. In 2014 Pakistan will earn $ 1 billion which will be increased years ahead.
After getting GSP plus Status china has contacted for several projects in Textile Industry.