European Union seeks if Pakistan can export other than textiles

The European Union urged Pakistan to diversify exports to the European Union for maximum advantage of the EU’s GSP Plus scheme.

Ambassador of European Union (EU) Raina Kionka while speaking with Karachi Chamber of Commerce and Industry (KCCI) said, ” Pakistan should broaden and diversify their exports to the European Union to take maximum advantage of the EU’s GSP Plus.”

The EU’s GSP Plus scheme for Pakistan has recently been rolled over for four more years up to 2027. However, the 2024 European Parliament election is scheduled to be held on 6 to 9 June 2024. After which new EU members may take up negotiations on a new directive for GSP+ with Pakistan.

Key highlights

• Under GSP+, Pakistani goods have duty-free access on 66% of EU tariff lines.
• Pakistan’s exports to the EU are primarily textiles and clothing. In 2020, these two categories accounted for 75.2% of Pakistan’s total exports to the EU.
• Pakistani exports to EU stood at $8.4 billion, followed by the USA at $5.93bn and China at $2.02bn in FY23.
• EU pointed out gems and jewellery, tourism, handcrafts, and auto parts under the GSP Plus, Pakistan can explore for increasing exports
• EU to set up a platform to promote EU-Pakistan business-to-business relations which could also help the SMEs in making good connections with businesses in EU and ultimately help the SMEs in Pakistan to also benefit from GSP+.
• Since the started the GSP+ in last 10 years increased Pakistan’s exports to EU by 108pc while EU imports climb by 40pc.
• Pakistan’s total textile exports remained at $16.50 billion which was almost 60 percent of its total exports.
• EU delegation is invited to KCCI’s My Karachi- Oasis of Harmony International Exhibition scheduled in August 2024.