Pakistan will have to ensure hectic lobbying to qualify for next GSP+ scheme, say sources
Ansar M Bhatti
ISLAMABAD: Pakistan will formally apply for a renewed Generalised System of Preferences Plus (GSP+) arrangement with the European Union starting January 2027, after the current framework expires at the end of 2026. Under a two-year grace period, existing benefits will continue until December 2028 while the EU Commission and Parliament finalise the new scheme. Officials and trade sources say Islamabad must undertake intensive lobbying and demonstrate stronger compliance capacity to secure continued preferential access, even as the EU has repeatedly flagged concerns over law and order, human rights, and implementation of international conventions.
According to official sources, any country, including current beneficiaries such as Pakistan, may apply once the new GSP+ Regulation enters into force on 1 January 2027. Present beneficiaries will retain their status under the grace period running from January 1, 2027, to December 31, 2028. This transitional window is intended to allow the EU institutions to complete legislative procedures and assessments. To remain eligible under the revised rules taking effect in 2027, Pakistan will need to address multiple priorities linked to its international commitments. Sources emphasise that the revised framework is expected to tighten monitoring of labour standards, environmental protections, and governance indicators, requiring enhanced institutional capacity in Islamabad and provincial governments.
EU Ambassador Raimundas Karoblis recently met the leadership of the Pakistan Textile Council (PTC) in Karachi to discuss the GSP+ scheme and the broader trajectory of trade relations. The ambassador underscored the importance of effective implementation of existing international commitments if Pakistan wishes to retain preferential market access. The textile sector, which accounts for a large share of Pakistan’s exports to the EU, has long viewed GSP+ as critical for competitiveness in European markets. Industry representatives have privately expressed concern that any erosion of preferences could affect employment and export volumes, particularly in garments and home textiles.
Last month, Deputy Prime Minister and Foreign Minister Senator Ishaq Dar highlighted the centrality of GSP+ during a meeting with EU High Representative for Foreign Affairs and Security Policy Kaja Kallas on the sidelines of the 81st UN General Assembly.
Trade analysts and diplomatic sources in Islamabad, however, point to a more pragmatic calculus. It is a widely held view among officials that GSP+ decisions have always carried a substantial political dimension. Consequently, many believe Pakistan is likely to retain preferential access even if longstanding concerns over human rights, freedom of expression, minority protections, and law-and-order conditions remain only partially addressed. These concerns have been raised in successive EU monitoring reports and parliamentary resolutions. While the EU has linked continued benefits to measurable progress on the 27 core international conventions covering human rights, labour rights, environmental standards, and good governance, enforcement has often been uneven.
Sources indicate that the most probable outcome, short of outright denial, would be a reduction in the number of product lines eligible for zero-duty treatment under the next scheme. Such a narrowing of the product list would still leave core textile and apparel categories largely intact but could exclude certain intermediate or value-added items, thereby limiting the overall commercial gain. This approach would allow the EU to signal continued scrutiny without triggering a major disruption in bilateral trade, which has grown substantially since Pakistan first obtained GSP+ status in 2014.
Pakistan’s export performance under GSP+ has been mixed. While textile and clothing shipments to the EU have risen, critics argue that the scheme has not produced commensurate improvements in labour conditions or environmental compliance in the manufacturing hubs of Punjab and Sindh. Labour unions and rights organisations have documented persistent issues of wage delays, weak union representation, and inadequate factory safety standards. On the governance side, concerns over media freedom, judicial independence, and treatment of political opposition have featured regularly in EU assessments.
To prepare for the 2027 application, the Ministry of Commerce and the Ministry of Foreign Affairs are expected to intensify coordination with industry bodies, provincial labour departments, and human-rights commissions. Officials acknowledge that “hectic lobbying” will be required both in Brussels and through member-state capitals. Capacity-building programmes focused on data collection, factory inspections, and reporting on convention implementation are already under discussion. Whether these efforts will satisfy the stricter monitoring mechanisms of the new regulation remains an open question.
For the EU, the forthcoming GSP+ review offers an opportunity to reassess the balance between development assistance and political conditionality. Several member states have grown more sceptical of extending broad preferences to countries where governance indicators have stagnated. At the same time, commercial interests in Europe’s textile-importing industries and the desire to maintain strategic dialogue with Pakistan on regional security and migration issues are likely to influence the final decision. The two-year grace period provides a buffer during which both sides can negotiate the contours of the next arrangement.
In the near term, Pakistani exporters will continue to benefit from existing preferences through 2028. The real test will come in the application and assessment process that begins in early 2027. Success will depend not only on technical compliance reports but also on the political will in Brussels to treat GSP+ as primarily a development tool or as a lever for broader reforms. Officials in Islamabad appear confident that the political character of the scheme will work in Pakistan’s favour, even if EU concerns over law and order and human rights are only partially resolved. The maximum concession the EU is expected to extract, according to well-placed sources, is a trimmed product list rather than a full suspension of benefits.
