The European Parliament recently cast a nearly unanimous vote to extend the generalised system of preferences (GSP) for an additional four years, allowing developing countries, including Pakistan, to benefit from reduced or eliminated duties on exports to the European market until 2027. The decision came after the GSP regulations, initially set to expire this year, were prolonged due to an impasse in negotiations between the EU Parliament and the council of member states.
Pakistan’s Response and EU’s Future Directions
Pakistani Commerce Minister Gohar Ejaz expressed that the extension will bolster Pakistani exporters’ confidence in the EU market. He also reaffirmed Pakistan’s dedication to upholding the 27 EU conventions encompassed by the GSP+. Meanwhile, the EU Ambassador to Pakistan, Riina Kionka, clarified that the extension is designed to prevent abrupt disruptions at 2023’s end and does not reflect any beneficiary country’s performance. The EU Council is set to give its conclusive approval for the extended rules soon.