The European Parliament on Thursday unanimously voted to extend the existing generalized system of preferences (GSP) for developing countries by another four years—until 2027—allowing them to avail duty-free or minimal duty on exports to the European market.
According to a statement issued by the E.U. Parliament, 561 lawmakers voted in favor of the measure; five against; while two abstained. It said the measure aimed to ensure continuity of policies for various GSP schemes, as talks with the E.U. Council on new rules were paused in June.
“I am pleased to share that the E.U. MEPs have decided to roll over the rules on the Generalized Scheme of Preferences (GSP) till 2027,” interim Commerce Minister Gohar Ejaz wrote on X, formerly Twitter. “The European Council is expected to give its final approval for the extension of the current scheme soon. I take this opportunity to reiterate Pakistan’s commitments under the scheme for the betterment of all,” he continued. “I wish to thank the E.U. Parliament for living up to its commitment to facilitate trade from developing countries,” he added.
In a subsequent posting on X, E.U. Ambassador to Pakistan Riina Kionka said the proposed rollover was aimed at avoiding a “cliff edge” at the end of 2023. “It is unrelated to Pakistan’s performance or that of any other beneficiary country,” she said, adding member states would decide on its approval soon while monitoring of beneficiary countries would continue.
“Together with [the E.U.], I wholeheartedly support the commitment of [Minister Ejaz] and the Government of Pakistan to fully meet GSP+ obligations,” she emphasized, referring to the implementation of 27 conventions on labor, human rights, political rights, and press freedom.
The E.U. is a major market for Pakistani exporters and the GSP+ status is considered key to ensuring the country gets preferential access to the European market. Pakistan has been a beneficiary of the GSP+ status since 2014, allowing for products to be exported to the E.U. at zero import duties. In 2021, the European Parliament adopted a non-binding resolution calling for a review of Pakistan’s GSP+ status over its blasphemy laws and religious intolerance following the anti-France protests organized by the Tehreek-e-Labaik Pakistan party.