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 agreement is expected to have far-reaching implications for global trade, and neighboring countries are taking notice. Pakistan, in particular, has released a statement commenting on the deal and its potential impact on the country’s trade relations with the EU.
According to reports, the Indian government has been actively engaged with the EU to negotiate a comprehensive FTA, which is expected to cover a wide range of areas, including trade in goods and services, investment, and intellectual property rights. The agreement is seen as a major breakthrough in the bilateral trade relations between India and the EU, and is expected to boost trade between the two regions.
Commenting on the development, 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 situation 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 significant trade relationship. The EU is one of Pakistan’s largest trading partners, and the country has been a beneficiary of the EU’s Generalized System of Preferences (GSP+) scheme. This scheme provides preferential access to the EU market for Pakistani exports, and has been instrumental in promoting bilateral trade between the two sides.
As Pakistan noted, “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.” This statement highlights the significance of the GSP+ scheme for Pakistan’s trade with the EU, and the importance of maintaining good relations with the EU to safeguard the country’s exports.
The announcement of the India-EU FTA has sparked concerns in Pakistan that the country may lose its competitive edge in the EU market. With the FTA, Indian exports are expected to gain preferential access to the EU market, which could potentially erode the market share of Pakistani exports. To mitigate this risk, Pakistan is engaging with the EU to safeguard its exports and ensure that its trade relations with the EU remain unaffected by the India-EU FTA.
The Pakistani government is reportedly in talks with the EU to explore options for enhancing trade cooperation and maintaining the country’s competitive edge in the EU market. This includes discussions on potential tariff reductions, increased market access, and other trade facilitation measures.
While the India-EU FTA is a significant development, it is not the only factor that will shape Pakistan’s trade relations with the EU. The country’s own economic policies, trade infrastructure, and competitiveness will also play a crucial role in determining its trade performance. To stay competitive, Pakistan will need to focus on improving its business environment, investing in trade-related infrastructure, and promoting exports through various means, including trade agreements and preferential trade arrangements.
In conclusion, the announcement of the India-EU FTA has significant implications for Pakistan’s trade relations with the EU. While the country is aware of the potential risks and is taking steps to mitigate them, it is essential to recognize that the EU remains a crucial trading partner for Pakistan. The country’s long-standing friendly relations with the EU, coupled with the benefits of the GSP+ scheme, provide a solid foundation for bilateral trade cooperation.
As Pakistan navigates the changing trade landscape, it is essential to stay engaged with the EU and explore opportunities for enhancing trade cooperation. By doing so, the country can ensure that its trade relations with the EU remain strong and resilient, and that its exports continue to benefit from preferential access to the EU market.
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