Pakistan ‘must reapply’ to retain GSP+ trade benefits as EU expands requirements

Pakistan must reapply for zero and reduced tariff access to the European Union market under the revised Generalized Scheme of Preferences Plus (GSP+) regime, according to an EU spokesperson. The EU's new GSP regulation, published on June 22, will come into effect on January 1, 2027, and will not guarantee automatic rollover or approval for existing beneficiaries.

Pakistan will maintain GSP+ access during a two-year transition period ending in 2028 if it complies with its obligations, but must reapply with a forward-looking action plan addressing expanded human rights, labor, environmental, climate, and governance standards to retain benefits beyond that timeframe. As per the EU spokesperson, "Like all other GSP+ countries, Pakistan will continue to benefit from GSP+ during the 2-year transition period until the end of 2028, subject to compliance with its obligations."

The GSP+ status is crucial for Pakistan, which exported €7.5 billion worth of duty-free or concessionary goods to the EU in 2024, saving an estimated €732 million in tariff exemptions. The EU's 2023-2025 GSP monitoring report, released in July, stated that while there have been progress in certain sectors, concerns remain regarding human rights, prison reforms, enforced disappearances, freedom of expression, child labor, and the protection of minority rights.

Pakistan's Ministry of Foreign Affairs acknowledged the EU's periodic assessment but noted reservations regarding the assessment's portrayal of Pakistan's performance on human rights and rule-of-law indicators. EU Ambassador to Pakistan, Raimundas Karoblis, described Pakistan as being at a "very critical juncture" in its trade relationship with the European Union, emphasizing that the country must demonstrate credible and measurable progress on human rights, labor rights, environmental commitments, and good governance to secure its preferential access to the EU market.