Pakistan Faces Uphill Battle to Retain EU Trade Benefits
ISLAMABAD: Pakistan’s future access to a vital European Union trade scheme is facing a serious test, with the EU warning that the country’s GSP+ benefits cannot be taken for granted.
The warning comes as the current Generalised Scheme of Preferences Plus (GSP+) framework approaches the end of its term. Although Pakistan and other existing beneficiaries will continue to receive trade preferences during a two year transition period until December 2028, this does not guarantee automatic entry into the new scheme.
EU Ambassador Raimundas Karoblis said Pakistan would need to show clear progress in improving its record before its reapplication could succeed. “The situation is not certain,” he said, stressing that GSP+ preferences could not simply be assumed to continue, as reported by Dawn News.
The stakes are high. Pakistan has benefited from GSP+ since 2014 and remains the scheme’s largest beneficiary. In 2024, the country received nearly €732 million in tariff exemptions, while exports worth around €7.115 billion used the preferential access. Of Pakistan’s total €8.275 billion exports to the EU that year, €7.482 billion were eligible for GSP+ preferences.
The European market accounts for about 28 per cent of Pakistan’s total exports. Textiles and clothing are particularly dependent on the scheme, making up between 70pc and 76pc of Pakistan’s exports to the EU.
Losing preferential access could therefore be costly. Higher tariffs could make Pakistani products less competitive in one of the country’s most important export markets.
The concern has grown following a European Commission assessment covering 2023-25. Released in July, the report pointed to compliance problems, regression in several areas and limited progress. It also said that some legislative and administrative measures had not yet produced meaningful improvements on the ground.
Among the main concerns were enforced disappearances, extrajudicial killings, freedom of expression, journalists’ and minority rights, judicial independence, access to justice and forced labour.
Pakistan, however, has defended its record. Foreign Office spokesperson Tahir Andrabi said Islamabad valued the EU’s recognition of its continued compliance with 27 international conventions. At the same time, he argued that the assessment did not present a “sufficiently balanced picture” of Pakistan’s performance.
Pakistan has also stressed that it remains committed to implementing the international conventions linked to the GSP+ framework.
The EU, meanwhile, has made clear that implementation “not promises alone” will be the real measure of Pakistan’s commitment.
The new GSP+ framework will cover 32 international conventions, compared with 27 under the current system. Pakistan has already ratified the five additional conventions required under the new arrangement, meaning the greater challenge will be proving that these commitments are being implemented effectively.
The EU ambassador said Pakistan’s reapplication would also require a clear action plan, with concrete measures, timelines and performance indicators.
Issues surrounding freedom of expression, the rule of law, enforced disappearances, blasphemy related concerns and recent legal changes are expected to remain important in discussions between Islamabad and Brussels.
For Pakistan, the road ahead is therefore more than a routine trade application. The country must protect an important economic lifeline while convincing Europe that its international commitments are being honoured not only on paper, but in everyday reality.
