BRUSSELS: The European Com­m­i­s­sion has proposed extending Pakistan’s GSP+ status — which is set to expire at the end of this year — for another four years as a contingency measure.

The EU has decided to introduce fresh legislation to continue the scheme for another 10 years, but there seems to be a deadlock between the EU Council, which wants to link the GSP+ scheme with migration, and the EU Parliament, which is not ready to do so.

“The EU Parliament strongly believes that trade shouldn’t be linked with the migration issue,” MEP Heidi Hautala said during an interaction with visiting Pakistani journalists.

As a temporary measure, it has been proposed that the current scheme should be extended for four years. The proposal will now be put to vote in the EU Parliament. According to a European official, the scheme will definitely be extended, but its time period will be decided by the legislature.

However, one EU official said that over the next decade, the GSP+ scheme would be very stringent and some countries may not even qualify for it, under the new legislation. It was repeatedly mentioned that conditions will be the same for all those countries trying to avail the GSP+ status and there will be no ‘pick and choose’.

Under the new regime, countries will have to submit a plan of action to implement over 30 conventions to qualify and remain eligible for duty-free access of goods to EU markets.

In a statement, EU Ambassador to Pakistan Dr Riina Kionka said they were keeping a close eye on Pakistan. A European official also commented that upcoming conditions may prove challenging for Pakistan.

Published in Dawn, July 9th, 2023

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Tax tussles
21 Jun, 2025

Tax tussles

THERE will be no more tax exemptions or tax amnesty schemes, declared Finance Minister Muhammad Aurangzeb on...
Seniority crisis
21 Jun, 2025

Seniority crisis

THE Constitutional Bench of the Supreme Court has determined that there is nothing wrong with Pakistan’s president...
Monsoon readiness
21 Jun, 2025

Monsoon readiness

OUR cities are once again staring down the very real prospect of waterlogged streets and stalled life with PMD’s...
Power lunch
Updated 20 Jun, 2025

Power lunch

However things develop in the Israel-Iran war, Pakistan must maintain its position, and stand by its neighbouring state.
Refuge denied
20 Jun, 2025

Refuge denied

ON World Refugee Day, it is essential we confront the scale of human displacement, which has now reached...
Income tax rate
20 Jun, 2025

Income tax rate

FINALLY, some clarity. After the confusion created over the applicable rate on the lowest income tax bracket due to...