Islamabad cannot assume its privileged trading terms with the European Union (EU) will roll on, the EU’s ambassador to Pakistan, Raimundas Karoblis, has cautioned, as the country readies a bid for GSP+ status under tougher rules.
Under the bloc’s overhauled GSP Regulation, effective January 1, 2027, current GSP+ members, Pakistan among them, keep their benefits through a grace period ending December 31, 2028. To remain in the scheme from January 2029, each must lodge a fresh application.
Textiles & garments face the sharpest risk
Big money rides on the outcome. Pakistan is the largest GSP+ user in the EU’s scheme. In 2024, roughly €7.5 billion of its shipments qualified, saving an estimated €732 million in duties.
Textiles and clothing are most vulnerable as about 89% of EU textile and apparel imports from Pakistan currently come in under preferential duty terms.
Karoblis signalled that without GSP+, some Pakistani textile and clothing lines now shipped duty free could face tariffs of roughly 9–12%.
A steeper climb for applicants
The revised scheme raises mandatory international conventions from 27 to 32, spanning human and labour rights, environmental and climate safeguards, and sound governance. Candidates must also table an implementation action plan.
The Commission’s latest review, covering 2023–25, found Pakistan wanting on compliance, noted backsliding in several fields and reported only modest improvement, even while recognising progress in legislation.
Areas of concern included labour rights, freedom of expression, enforced disappearances, minority rights and judicial independence.
Pakistan disputes elements of that finding and maintains it remains committed to applying the conventions.
Access is now a competitiveness matter
For exporters, GSP+ is far more than diplomatic nicety. A 9–12% duty handicap could wipe out any incremental gains made through better energy efficiency, higher productivity or favourable currency swings.
Islamabad’s most pressing task is a credible, quantifiable delivery plan, ahead of reapplying. Textile mills and garment exporters need to keep a watch whether the government turns legislative pledges into demonstrable results before the 2028 cut-off.
Image courtesy: lifeforstock by Freepik
