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GSP+, Challenges and

Prospects for Pakistan
Current Issue Presentation
Muhammad Umar Ashraf, C&T
Sponsor DS: Ms. Sijal Tauseef Khan
Date: 27-1-2015

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Sequence
Currency of the topic
Introduction
Pakistan EU trade relations
Imports of EU
Key Advantages
Implementation of 27 Conventions
Important Time Lines
GSP+ challenges
Why CSR
Conclusion
Way Forward

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Currency Of The Topic

GSP Plus facility: exporters may not reap

expected growth due to shortage of gas,
electricity (Jan 22, 2015)

Under the arrangement, it added, Pakistan

has a duty advantage of 10-14 percent over
its competitors in the textile and clothing
sectors. (Jan 20, 2015)
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Introduction
Under the scheme, more favorable tariff treatment
is granted to a range of products originating in
those

countries

pertaining

to

that

meet

economic

certain

vulnerability

conditions
and

the

sustainable development criteria as provided by

the 27 international conventions on human rights,
the environment and internationally agreed labour
standards
http://unctad.org/en/docs/itcdtsbmisc25rev3_en.pdf

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Pakistan EU Trade
Relations

EU Pakistans single largest trading partner

It accounts for 24.96% of our exports

Main exports-home textiles, garments,

leather products, footwear, footballs,
surgical instruments and rice

Major

imports-industrial

machinery,

electronic equipment, chemicals etc.

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Imports of EU (000 US$)

60,000,000

56,284,264

54,732,556
48,642,542

50,000,000
40,000,000

Pakistan
India
Sri Lanka
Bangladesh

30,000,000
20,000,000
10,000,000
6,345,755
0

2011

5,306,086
2012

6,272,517
2013

www.trademap.org
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Imports of EU (000 US$)

4,000,000
3,478,692

3,500,000
3,000,000
2,500,000
2,000,000
1,500,000

1,132,221

1,000,000

800,868

Cotton Yarn and

Fabric
Textile Madeups
Clothing, Woven
Clothing, Knitted

500,000
0

Pakistan

India

Sri Lanka

www.trademap.org
8
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Key Advantages
Duty free treatment for Pakistani products
covering 96% of products exported to the
EU by Pakistan.
Only the second country in the entire South
and South East Asian region to have duty
free access to European Union.
Competitors in the T&C sector; China, India,
Vietnam, Thailand, Indonesia have no duty
free access as well as no preferential access
10% to 14% duty advantage.

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Implementation of 27 Conventions

27 international conventions pertaining to

Human Rights,
Labor Rights,
Environment,
Narcotics
Good Governance:

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Important time lines

The scheme shall apply for a period of 10 years.
Every 2 Years the European Commission would
present a report on the status of implementation
of the Conventions to the European Parliament
and the Council.
5 years after its entry into force, the Commission
should report to the European Parliament and to
the Council on the application of this Regulation
and assess the need to review the scheme,
including the special incentive arrangement for
sustainable development and good governance.

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GSP+ CHALLENGES
The margins of duty preference accorded
under the EUs GSP+ scheme can be a
double edged sword:
The
greatest potential for Pakistans
increased exports to the EU clearly lays in
the textiles and clothing sector. It must be
achieved
The key challenge to increase Pakistans
exports to the EU lays primarily within the
border

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GSP+ CHALLENGES
Diversification
Education of your employees (e.g. quality
control).
Attention on labour:

Enforcement of labour rights,

Child labour
Equal rights for women,
CSR (also safety issues, like fire escape)

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GSP+ CHALLENGES
(Cont..)

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GSP+ CHALLENGES
(Cont..)

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Why CSR
Social Media have put public & private sector
behaviour under close scrutiny
Web-enabled
communication
means
that
geography is history
Transparency happens with the speed of light
Any supplying company that breaks its promise
risks the scrutiny of every sourcing buyer, business
analyst, pressure group and consumer worldwide
Legislators (and Buyer enforced ISO & continuous
supplier
quality
assessments)
are
EU'S
gatekeepers

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Conclusions

GSP+ scheme is a double edged sword

The challenge of fully utilizing the potential under GSP Plus will be
a daunting task
Conditions are attached with GSP+ and we have to adhered to
them
We must adhere to labor laws and rights, gender rights and
equality, protection of the environment, human rights, climate
change etc as required from us

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Way forward

Focus primaly on Textile and Leather Sector

Implement CSR
Opt for ISO 16000
Opt for diversification

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