GSP Plus: EU grants duty-free market access to Pakistani goods
European Parliament approved the Single Delegated Act under which ten countries including Pakistan are privileged to Generalized System of Preferences Plus (GSP Plus) Scheme. The Act will come into force from January 1, 2014.
The European Union being Pakistan’s most important trading partner supports the integration of Pakistan with the global economy by granting Pakistan’s exports to the EU reduced tariffs under the EU’s Generalized Scheme of Preferences.
How do Generalized System of Preferences Plus (GSP Plus) status helpful for Pakistan?
- The status provides Pakistan duty-free or preferential duty rate access for a total of 3,500 products. It means there will be zero duties on over 90% of all products that Islamabad exports to the bloc of 27 nations.
- EU trade concessions will benefit the country’s largest manufacturer and exporter, the textile and clothing industry, the most by allowing its products to compete with those of regional rivals like Bangladesh and Sri Lanka, which already have duty free access to the bloc’s market.
About Generalized System of Preferences Plus (GSP Plus) Status
- The EU’s “Generalized Scheme of Preferences” (GSP) allows developing country exporters to pay lower duties on their exports to the EU. This gives them vital access to EU markets and contributes to their economic growth.
- The “GSP+” enhanced preference means full removal of tariffs on essentially the same product categories as those covered by the general arrangement.
- These are granted to countries which ratify and implement international conventions relating to human and labor rights, environment and good governance.
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Month: Current Affairs - December, 2013