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), touted as 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 reaffirm its own trade relations with the EU.
According to reports, Pakistan’s statement acknowledged the India-EU trade deal, saying, “We are aware of this agreement. We have seen reports and as well as the content.” The statement further emphasized Pakistan’s long-standing friendly relations with the EU, highlighting the benefits of their bilateral cooperation. “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,” it added.
The EU’s Generalized System of Preferences Plus (GSP+) scheme has been a significant factor in Pakistan’s trade relations with the EU. The scheme provides preferential access to the EU market for Pakistani products, with the aim of promoting economic development and good governance in the country. With the total trade volume between Pakistan and the EU standing at €12 billion, it is clear that this scheme has been beneficial for both parties.
However, the India-EU FTA has raised concerns in Pakistan about the potential impact on its own trade relations with the EU. The FTA is expected to provide Indian products with preferential access to the EU market, which could lead to a loss of competitiveness for Pakistani exports. Pakistan’s statement can be seen as an attempt to reassure its own exporters and the EU that it is committed to maintaining and strengthening its trade relations with the EU.
The India-EU FTA is a significant development in the global trade landscape, with far-reaching implications for countries like Pakistan. The agreement is expected to increase trade between India and the EU, with estimates suggesting that it could lead to a 20% increase in bilateral trade. However, this could also lead to a decline in Pakistan’s exports to the EU, as Indian products gain preferential access to the market.
Pakistan’s engagement with the EU to safeguard its exports is a prudent move, given the potential risks posed by the India-EU FTA. The country’s exporters are already facing challenges due to the COVID-19 pandemic and other global economic uncertainties. The loss of competitiveness in the EU market could exacerbate these challenges, leading to a decline in exports and economic growth.
In this context, Pakistan’s statement can be seen as a call to action, urging the EU to consider the potential impact of the India-EU FTA on its trade relations with Pakistan. The country is seeking to reassure the EU that it is committed to maintaining and strengthening its trade relations, while also seeking to safeguard its exports.
The EU, on its part, has been keen to strengthen its trade relations with Pakistan, recognizing the country’s strategic importance in the region. The EU has been one of Pakistan’s largest trading partners, with bilateral trade worth billions of euros. The EU’s GSP+ scheme has been a key factor in promoting trade between the two sides, and the EU has been keen to continue this scheme to support Pakistan’s economic development.
In conclusion, Pakistan’s statement on the India-EU FTA is a significant development in the country’s trade relations with the EU. The statement reflects Pakistan’s concerns about the potential impact of the FTA on its own trade relations with the EU, while also reaffirming its commitment to maintaining and strengthening these relations. As the global trade landscape continues to evolve, it is likely that Pakistan will engage in further discussions with the EU to safeguard its exports and promote its trade interests.
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