GSP Plus: EU urges Pakistan to prioritise implementation over legislation
- Bloc not introducing new standards under scheme but expect demonstrable improvements in areas of concern, particularly human rights and rule of law, says EU Ambassador to Pakistan Raimundas Karoblis
The EU urges Pakistan to effectively implement human rights and rule of law commitments to secure continued GSP+ trade benefits, vital for its textile exports, as a new framework approaches.
- EU's demand for effective implementation of commitments.
- Pakistan's critical dependence on GSP+ for exports.
- Upcoming changes to the EU's GSP framework.
- Key human rights and rule of law concerns.
- Impact of the EU-India Free Trade Agreement.
The European Union has urged Pakistan to prioritise the effective implementation of its existing commitments over legislation to retain benefits under the Generalised Scheme of Preferences Plus (GSP+) trade arrangement.
Speaking at a meeting with the Pakistan Textile Council (PTC) in Karachi, EU Ambassador to Pakistan Raimundas Karoblis said the bloc was not introducing new standards under the scheme but expected demonstrable improvements in areas of concern, particularly human rights and the rule of law.
The EU GSP+ is a trade incentive arrangement that allows eligible developing countries, including Pakistan, to export a wide range of products to the EU at zero or reduced tariffs in return for implementing international conventions on human rights, labour rights, environmental protection and good governance.
Pakistan has benefited from the scheme since 2014, with textiles and clothing accounting for the bulk of its exports to the bloc. The EU’s new GSP framework is scheduled to take effect on January 1, 2027, with existing beneficiaries required to reapply by the end of 2028 under transitional arrangements.
In 2025-26, Pakistan’s exports to the EU reportedly stood at $8.96 billion. The sectors benefiting most from GSP+ preferences were clothing and textiles, leather and fur articles, prepared foods and beverages and miscellaneous manufactures.
The ambassador said the EU would enhance engagement with the government, with immediate priority given to short-term improvements, followed by a credible action plan with concrete measures, timelines and measurable performance indicators.
The new framework places greater emphasis on effective implementation of commitments rather than ratification of conventions or adoption of legislation, according to a PTC statement issued on Wednesday.
The meeting focused on Pakistan’s position under the EU’s GSP+ scheme, the process for the arrangement’s next phase and the importance of textile and apparel exports to Pakistan’s trade relationship with the bloc.
The ambassador referred to the EU’s assessment of Pakistan covering 2023-2025, published on July 16, 2026, and stressed the need for progress on commitments relating to human rights and the rule of law.
During the meeting, PTC Chairman Fawad Anwar said the continuation of GSP+ was critical for Pakistan’s textile and apparel exports, employment, tax contributions and the wider network of businesses and livelihoods linked to the sector.
He noted that the EU-India Free Trade Agreement would create additional competitive pressure on Pakistani exporters, even if Pakistan retained its GSP+ status. The deal is expected to pave the way for India to open up its market to free trade with the 27-nation European Union.
Zaki Bashir, CEO Gul Ahmed, maintained that conditions within Pakistan’s textile and apparel export sector should be assessed separately from national-level findings. He noted that concerns presented are national findings rather than sector-specific assessments.
PTC CEO Hasan Shafqaat highlighted a need for greater clarity and proportionate implementation of emerging EU regulatory requirements, particularly the Digital Product Passport and supply chain due diligence obligations. He noted that the regulations would extend transparency and traceability requirements across the entire value chain, potentially reaching back to the farm level.
According to the EU’s GSP+ monitoring report covering the 2023-2025 period, Pakistan remained the bloc’s largest beneficiary of the Special Incentive Arrangement for Sustainable Development and Good Governance, exporting EUR 7.5 billion in GSP+ eligible exports to the EU in 2024 (primarily textiles and clothing) and an estimated EUR 732 million in tariff exemptions in 2024 alone.
According to the report, to ensure further GSP+ eligibility and compliance with international commitments, including in view of the revised GSP rules as of 2027, key priorities for future engagement include:
- Ensuring accountability for human rights violations
- Increased efforts against torture
- In-prison and capital punishment reforms
- Reversing negative developments in relation to enforced disappearances and violations of freedom of expression
- Effectively addressing violence against women
- Securing children’s access to education
- Ending child marriage
- Effectively implementing the newly established action plans of provinces and territories to eliminate child labour
- Stepping up the enforcement of existing laws against forced labour
- Restraining discrimination of minorities
- Strengthening the independence, impartiality, and operational capacity of anti-corruption bodies at federal and provincial levels
The PTC delegation that met EU ambassador was led by Fawad Anwar, Chairman PTC, and included Anees Khawaja, Vice Chairman PTC; Zaki Bashir, CEO Gul Ahmed; Kashif Chawla, CEO Alkaram Towels; Asif Riaz, CEO Naveena Group; Siddique Bhatti, US Apparel; Haris Khan, Vice President Utopia Industries; Ahmed Javed, CEO AGI Denim; Junaid, GM Finance Utopia Industries; and Muhammad Hasan Shafqaat, CEO PTC.