Pakistan releases statement after India and EU announce ‘mother of all trade deals’
In a recent development, India and the European Union (EU) have announced a landmark free trade agreement (FTA), dubbed the “mother of all trade deals”. This move has sent ripples across the global trade landscape, with neighboring countries like Pakistan taking notice. Commenting on this significant agreement, Pakistan has released a statement, acknowledging the development and reiterating its long-standing friendly relations with the EU.
According to reports, Pakistan’s statement reads, “We are aware of this agreement. We have seen reports and as well as the content.” This acknowledgment suggests that Pakistan is closely monitoring the situation and is aware of the potential implications of this trade deal on its own exports to the EU. The statement further emphasizes Pakistan’s strong bilateral ties with the EU, stating, “Pakistan maintains long-standing friendly…relations with EU…The EU GSP+ scheme for Pakistan has proven to be a win-win…for bilateral cooperation…The total volume between our two sides stands at €12 billion.”
The EU GSP+ (Generalized System of Preferences Plus) scheme is a preferential trade arrangement that provides duty-free access to the EU market for certain products from developing countries, including Pakistan. This scheme has been instrumental in boosting Pakistan’s exports to the EU, with the total trade volume between the two sides reaching an impressive €12 billion. Pakistan’s statement highlights the significance of this scheme in promoting bilateral cooperation and mutual trade benefits.
The India-EU FTA, on the other hand, is expected to have far-reaching implications for global trade, particularly for countries like Pakistan that rely heavily on EU markets for their exports. The agreement is likely to provide Indian exporters with preferential access to the EU market, potentially eroding the competitive edge that Pakistan currently enjoys under the GSP+ scheme. This has raised concerns in Pakistan about the potential loss of its tariff advantage in the EU market, which could negatively impact its exports and economy.
In response to these concerns, Pakistan has engaged with the EU to safeguard its exports and ensure that its trade interests are protected. According to reports, Pakistan has been in talks with the EU to explore ways to maintain its competitive edge in the EU market, despite the India-EU FTA. This includes discussions on potential adjustments to the GSP+ scheme or other trade arrangements that could help Pakistan mitigate the impact of the India-EU FTA.
The India-EU FTA is a significant development in the global trade landscape, with far-reaching implications for countries like Pakistan. As the EU’s largest trading partner in South Asia, India is expected to benefit significantly from this agreement, with increased access to the EU market for its goods and services. However, for Pakistan, the agreement poses a significant challenge, as it may lose its competitive edge in the EU market.
In conclusion, Pakistan’s statement on the India-EU FTA reflects its awareness of the potential implications of this agreement on its trade relations with the EU. By reiterating its long-standing friendly relations with the EU and highlighting the significance of the GSP+ scheme, Pakistan is seeking to safeguard its exports and maintain its competitive edge in the EU market. As the global trade landscape continues to evolve, it remains to be seen how Pakistan will navigate the challenges posed by the India-EU FTA and ensure that its trade interests are protected.
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