EU envoy says GSP+ benefits ‘cannot be taken for granted’ amid engagement over future of vital trading scheme

Amid negotiations for Pakistan's reapplication to a trading scheme, EU envoy Raimundas Karoblis has warned that Generalised Scheme of Preferences + (GSP+) benefits "cannot be taken for granted." Pakistan is currently set to receive GSP+ benefits until the end of 2028, but this does not guarantee automatic continuation into the new scheme.

The EU assessment of Pakistan's compliance with the scheme identified areas of regression, including concerns over enforced disappearances, extrajudicial killings, freedom of expression, and judicial independence. The two-year transition period, ending on December 31, 2028, does not assure continued access to the benefits. European Commission's assessment from 2023-25 found that Pakistan faced compliance issues, regressed in some areas, and made only limited positive changes.

While the government has taken legislative and administrative measures, these have yet to translate into on-the-ground improvements. Diplomatic discussions between Pakistan and the EU suggest Islamabad is aware of the gravity of the situation, although questions remain about whether the government has taken decisive action. Pakistan's dependence on GSP+ is significant, with the scheme accounting for nearly 90% of its exports to the EU and about 28% of its total exports.

The textile and clothing sector is particularly affected, as 70-76% of Pakistan's exports to the EU are eligible for GSP+ preferences. Loss of preferential access could result in partial or full withdrawal of benefits, with previous examples including Bolivia and Sri Lanka.