Changes in GSP Regime

Although the European Commission, after sharp reactions of the third countries on the WTO forum and of the European industry within the European Union itself, has finally decided about withdrawal from the idea of implementation of regulation introducing the zero duty rate for some Pakistani products (in 80% – textiles and clothing) – it does not mean that the Commission resigned from enforcing the “help” for Pakistan.


Hardly had the European textile-clothing industry breathed the sigh of relief after rejection of the above mentioned “Pakistani waiver”, another attempt of enforcing new economical preferences for Pakistan has been made. The GSP 2011 revision proposal included the provision about rising the so called GSP+ Vulnerability Threshold. This would mean increase from the so far existing 1% to 2%. In particular, this provision would allow Pakistan to obtain GSP+ preferences, i.e. zero duty rates for imports from that country to the EU market and consequently – to flood our market with highly competitive textiles and clothes. Desperate, stiff fight of the EU decision makers for realization of the political declarations in favour of Pakistan would be admirable if it were not harmful for the economical interests of the European industry. Branch organizations sent to the European Commission the official opinion with their objections as to the proposed amendments of the GSP. (more information in the GCA Bulleting No. 3/2011 – October edition)

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