European Parliament extends GSP Plus status till 2027

BRUSSELS: The European Parliament has voted to roll over the rules on Generalized Scheme of Preferences (GSP) designed to help developing countries including Pakistan.

After extension, GSP Plus regulations will now expire in 2027. The European Parliament voted with 561 in favour, 5 against and 2 abstentions to extend current rules.

Minister for Commerce Gohar Ijaz has expressed gratitude to European Union for living up to its commitment to facilitate trade from developing countries.

“I take this opportunity to reiterate Pakistan’s commitments under the scheme for the betterment of all,” the minister said. He added that Pakistan will comply with all obligations and effective implementation of 27 EU conventions.

EU Ambassador to Pakistan Riina Kionka said this rollover is proposed so as to avoid a cliff edge at the end of 2023.

“It is unrelated to Pakistan’s performance or that of any other beneficiary country. EU member states will decide soon and monitoring will continue,” she further said.

In another post, Ms Riina said that together with the EU team, “I whole heartedly support the commitment of Minister Ejaz and government of Pakistan to fully meet GSP+ obligations, referring to the implementation of 27 conventions on labour, human rights, political rights and press freedom.”

It is worth mentioning that the current GSP regulation was set to expire at the end of this year, and negotiations between the EU parliament and the council of member states took place in January 2023 to establish new rules.

In June, the talks were paused as the gap between the position of the parliament and member states could not be bridged, and as a result, the current rules were prolonged.

The draft report by rapporteur Heidi Hautala has amended the date of application of the regulation currently in place, extending it until December 31, 2027. The extension gives more time for the European Parliament and member states to agree on the new rules.