Pakistan to Face Five New EU Conditions to Retain GSP+ Duty-Free Trade Status

Pakistan will have to comply with five additional international conventions, raising its total obligations from 27 to 32, in order to keep its Generalized Scheme of Preferences Plus (GSP+) trade benefits from the European Union under a revised mechanism set to take effect in 2029. Secretary Commerce Jawad Paul briefed the National Assembly Standing Committee on Commerce on the new requirements, according to local media reports.

The commerce secretary told the committee that Pakistan would need to submit a fresh application under the EU's prescribed requirements. He said the European Union had submitted its assessment of Pakistan to the European Parliament and described the findings as satisfactory, adding that the country remains covered under the existing arrangement until 2029.

The five new conventions cover the protection of the rights of people with disabilities, preventing the recruitment of children into armed conflict, requiring effective labor inspections, ensuring consultation among governments, employers and workers on labor policies, and combating human trafficking, smuggling and organized crime. Pakistan has already ratified all five, meaning the principal challenge will be demonstrating their effective implementation rather than signing them. The revised framework also replaces the Kyoto Protocol with the Paris Climate Agreement, which Pakistan has already ratified.

Under the revised system, Pakistan will still have to submit a new GSP+ application accompanied by a detailed action plan showing how it will implement all 32 conventions. Existing beneficiaries can retain their trade preferences during a two-year transition period ending in December 2028. The GSP+ arrangement grants Pakistani exporters duty-free access to European markets, making it a significant pillar of the country's export sector.

The committee also discussed Pakistan's suspension of bilateral trade with India, which has remained in place since 2019. Jawad Paul acknowledged that trade between the two countries was still taking place indirectly through third countries, including the United Arab Emirates. Committee Chairman Javed Hanif Khan questioned the rationale behind the suspension, noting that China and India had continued bilateral trade despite tensions between them.

The meeting was held to review Pakistan's international trade arrangements and the challenges facing its export sector. The commerce secretary's briefing comes as Islamabad seeks to protect preferential access to one of its most important export destinations ahead of the revised EU framework.

The government has not yet announced a timeline for preparing the new application or the accompanying implementation plan, which will be central to securing continued duty-free access after the transition period ends.