ISLAMABAD: EU imports from Pakistan stood at 5.5 billion euros in 2014, registering an increase of 22 per cent compared to 2013, mainly due to GSP Plus facility granted by the European Union to Pakistan.

A report published by the European Commission indicated that over 70 per cent of EU imports from Pakistan were of textiles and clothing.

Around 87 per cent of Pakistan’s exports to the EU are eligible for GSP Plus and over 95 per cent actually use the preferences.

The enhanced trade preferences under GSP Plus are of particular importance to Pakistan’s textiles and clothing industry, which accounts for 8pc of the GDP, contributes to 50 to 60pc of total export earnings and provides employment to 38pc of the manufacturing labour force.

Pakistan’s top export products, such as bed-linen, denim trousers and leather apparels enter the EU duty-free, which would otherwise be subject to normal GSP rate of 9.6pc or the MFN rate of 12pc. EU preferential imports of textiles and clothing increased 82pc compared to 2013 from 2bn euros in 2013 to 3.7bn euros in 2014, and preferential imports of footwear by 121pc.

The commission will continue delivering practical su­p­port to the GSP Plus countries, including existing cap­acity-building projects in par­tnership with the ILO. On­go­ing projects include su­pport of local administrations to put administrative str­u­ctures in place in four countries, Pakistan, Mongo­lia, Guate­mala and El Salva­dor, as well as support for civil society engagement for human and labour rights improvements in all of the 14 countries.

EU Commissioner for Tra­de Cecilia Malmström said: “We have done much work over the past two years, enga­ging with vulnerable countries who asked for enhanced access to the EU market.

Published in Dawn, January 30th, 2016