Pakistan releases statement after India and EU announce ‘mother of all trade deals’
In a recent development, India and the European Union (EU) announced a landmark trade agreement, dubbed the “mother of all trade deals”. This move has sent ripples across the global trade landscape, with neighboring countries taking notice. Pakistan, in particular, has been swift to respond to this development, releasing a statement to address concerns and reiterate its own strong ties with the EU.
According to reports, the India-EU trade deal is expected to be a game-changer, with both parties aiming to increase bilateral trade and investment. The agreement is likely to cover a wide range of areas, including goods, services, and investment, and is expected to have a significant impact on the global trade dynamics. The deal is also seen as a strategic move by both India and the EU to strengthen their economic ties and counterbalance the growing influence of other major economies.
Commenting on the India-EU trade deal, Pakistan said, “We are aware of this agreement. We have seen reports and as well as the content.” This statement suggests that Pakistan is closely monitoring the developments and is aware of the potential implications of the deal on its own trade relations with the EU.
Pakistan has long maintained friendly relations with the EU, and the two sides have a strong trade partnership. The EU’s Generalized System of Preferences Plus (GSP+) scheme has been a key factor in promoting bilateral trade between Pakistan and the EU. Under this scheme, Pakistan enjoys preferential access to the EU market, with reduced or zero tariffs on a wide range of products.
“The EU GSP+ scheme for Pakistan has proven to be a win-win for bilateral cooperation,” Pakistan said in its statement. “The total volume between our two sides stands at €12 billion,” it added. This statement highlights the significant trade volumes between Pakistan and the EU, and underscores the importance of the GSP+ scheme in promoting trade between the two sides.
However, the India-EU trade deal has raised concerns in Pakistan about the potential loss of its tariff edge in the EU market. With India and the EU agreeing to reduce or eliminate tariffs on a wide range of products, Pakistan fears that its own exports may become less competitive in the EU market. This could have significant implications for Pakistan’s trade balance and economy, which is heavily reliant on exports to the EU.
To address these concerns, Pakistan has engaged with the EU to safeguard its exports and ensure that its trade interests are protected. Pakistan’s trade diplomats have been in talks with their EU counterparts to discuss the potential implications of the India-EU trade deal and to explore ways to maintain Pakistan’s competitive edge in the EU market.
The EU has been a significant trade partner for Pakistan, and the two sides have a long history of cooperation. Pakistan has been a beneficiary of the EU’s GSP+ scheme since 2014, which has helped to increase its exports to the EU. However, the India-EU trade deal has raised concerns about the potential erosion of Pakistan’s tariff preferences in the EU market.
To mitigate these risks, Pakistan is exploring options to enhance its trade relations with the EU and to diversify its exports to other markets. Pakistan’s trade policymakers are working to identify new export opportunities and to develop strategies to increase the country’s competitiveness in the global market.
In conclusion, the India-EU trade deal has significant implications for Pakistan’s trade relations with the EU. While Pakistan has welcomed the development, it has also expressed concerns about the potential loss of its tariff edge in the EU market. To address these concerns, Pakistan has engaged with the EU to safeguard its exports and ensure that its trade interests are protected. As the global trade landscape continues to evolve, Pakistan must remain vigilant and proactive in promoting its trade interests and diversifying its exports to new markets.
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