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EU's GSP plus status to Pak imminent
13 Jan '12
2 min read
The much-awaited granting of European Union's Generalized System of Preferences (GSP) plus status to Pakistan now looks imminent, which is likely to result in a significant US$ 200 million per annum increase in the Asian country's textile and garment exports.
In fact, EU has already started its internal process for activation of the package once the WTO gives its final approval to the waiver.
Most of the concerns earlier expressed by countries like India and Bangladesh regarding the EU package to EU have now been addressed and hence the waiver of duty on 75 Pakistani items for export to EU is likely to be approved at the next meeting of the Council for Trade in Goods.
This would be followed by an approval from the WTO Council, which would be meeting next on February 22, 2012 in Geneva.
Subsequently, the proposal would have to be approved by the European Council and the European Parliament. It would result in admission of Pakistan to EU's GSP Plus which would come into effect from January 1, 2014.
The implementation of the GSP Plus scheme would increase Pakistan's textile and garment exports by US$ 150-200 per year, according to experts.
The duty waiver on Pakistani export items to EU will be applicable up to average 20 percent export growth to the EU, and if exports rise beyond 20 percent, goods entering EU would have to pay the duty.
However, analysts say the rise in Pakistan's exports to EU after the coming into effect of the GSP Plus scheme is likely to remain within the 20 percent limit.
In fact, EU has already started its internal process for activation of the package once the WTO gives its final approval to the waiver.
Most of the concerns earlier expressed by countries like India and Bangladesh regarding the EU package to EU have now been addressed and hence the waiver of duty on 75 Pakistani items for export to EU is likely to be approved at the next meeting of the Council for Trade in Goods.
This would be followed by an approval from the WTO Council, which would be meeting next on February 22, 2012 in Geneva.
Subsequently, the proposal would have to be approved by the European Council and the European Parliament. It would result in admission of Pakistan to EU's GSP Plus which would come into effect from January 1, 2014.
The implementation of the GSP Plus scheme would increase Pakistan's textile and garment exports by US$ 150-200 per year, according to experts.
The duty waiver on Pakistani export items to EU will be applicable up to average 20 percent export growth to the EU, and if exports rise beyond 20 percent, goods entering EU would have to pay the duty.
However, analysts say the rise in Pakistan's exports to EU after the coming into effect of the GSP Plus scheme is likely to remain within the 20 percent limit.
Fibre2fashion News Desk - India
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