APTMA, EU open talks on GSP+ renewal

LAHORE: The European Union’s Generalised Scheme of Preferences Plus (GSP+) trade facility has sparked talks between Pakistan’s textile industry and the EU. EU Ambassador Raimundas Karoblis highlighted the importance of human rights, labour and environmental improvements, as the scheme’s current expiry is in 2027. The EU delegation, which included the ambassador, a senior development cooperation manager, and a senior economist, met with top officials from the All Pakistan Textile Mills Association (APTMA) on Friday. APTMA Chairman Kamran Arshad, Chairman-elect Asad Shafi and other leaders welcomed the delegation.

Ambassador Karoblis urged the industry to show progress in implementing international conventions that would maintain eligibility for GSP+. He encouraged exporters to expedite reforms and collaborate with the government on concerns raised by the European Commission about human rights, labour standards, governance and environmental regulations. He praised the textile sector’s sustainability efforts, stating they would be crucial for the EU’s evaluation of any renewal request.

APTMA Chairman Kamran Arshad emphasized that GSP+ allowed Pakistan to trade 78 percent of its goods duty-free in the European market. This facility contributed to job creation, investment, technology upgrades, and Pakistan’s pursuit of net-zero carbon emissions by 2050. Arshad warned that losing GSP+ could cause the country to lose over Rs1 trillion in annual exports, leading to mill closures and increased unemployment.

The textile sector’s debt accounted for more than 40 percent of outstanding bank loans, meaning a disruption could also affect the banking, real estate and transport industries.

APTMA Chairman North Asad Shafi noted that the industry had invested billions of dollars in EU-made machinery for expansion plans. He urged the ambassador to support the establishment of a Pakistan-EU free trade agreement, similar to the India-EU FTA, as a backup if GSP+ was threatened. Shafi briefed the ambassador on APTMA’s compliance initiatives, including the proposed National Compliance Entity, and reiterated the association’s dedication to resolving compliance issues before Pakistan re-applies for GSP+.