Dar meets EU foreign policy chief, stresses importance of GSP+ status for Pakistan's trade ties with the bloc

Deputy Prime Minister and Foreign Minister Ishaq Dar met with EU High Representative for Foreign Affairs and Security Policy Kaja Kallas on Monday, emphasizing the importance of GSP+ status for Pakistan's trade relations with the European Union. The meeting occurred during the 81st session of the United Nations General Assembly in New York, which took place from Sep 21-25.

Dar highlighted Pakistan's strong partnership with the EU, particularly in trade and economic cooperation. The two sides discussed regional and global developments, with Dar appreciating the EU's constructive engagement with Pakistan and recognizing its efforts towards de-escalation and dialogue. Both sides agreed to maintain close engagement on matters of mutual interest, including the recent Israeli-Palestinian conflict and the need for a return to dialogue and diplomacy.

The EU's Generalised Scheme of Preferences (GSP) framework is set to expire at the end of this year, and Pakistan must seek inclusion in the successor regime, which carries more stringent requirements. The European Commission's assessment in July concluded that Pakistan faced compliance issues, regressed in some areas, and made limited positive change.

Diplomatic discussions between Pakistan and the EU indicate that Islamabad is aware of the gravity of the situation, though decisive action remains to be seen. EU imports from Pakistan reached €9.4 billion in 2022, dropped to €7.9 billion in 2023, and recovered to €8.3 billion in 2024. Pakistan's textiles and clothing exports to the EU make up 70 to 76 percent of its total exports to the European market, with about 90 percent of these exports eligible for GSP+ preferences.