Zardari to seek GSP Plus, zero duty status in Brussels

KARACHI (NNI) - President Asif Ali Zardari is scheduled to visit Brussels on June 16 to advocate market access for Pakistan’s textiles to the European Union (EU) market.
According to sources, the President will persuade the EU to award GSP Plus status to Pakistan and consequently allow zero duty on Pakistani exports to European countries.
It is important to note that Federal Advisor on Textiles, Dr Mirza Ikhtiar Baig, has prepared a study on the duty free access for Pakistan to the EU, which states that most of the countries (nearly all) exporting to the EU are enjoying GSP treatment of their exports. GSP is a slightly lower rate of duty than the regular duty.
If Pakistan is given the zero duty status, its exports to the EU may increase from the current volume of around 7 to 10 billion dollars to about 15 to 20 billion or even to the range of 25-30 billion dollars. It is not an extra-ordinary burden for the EU considering that the total imports of the EU are over $800 billion, the study said.
The study further points out that the EU can give a zero duty status to Pakistan with a limit, which will go away, if Pakistan’s current exports increase three fold.
Pakistan can earn this status like the countries currently having exports less than one per cent of the total EU imports (excluding oil) that qualify for GSP Plus. Pakistan’s exports stands around 1-1.5 per cent. This threshold for qualification of GSP Plus should be increased to 3 per cent plus a period of 3 to 4 years to sign/ratify the required international treaties/conventions, while granting GSP Plus status immediately, in compliance with WTO’s zero duty obligations.