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 trade agreement, dubbed the “mother of all trade deals”. This deal is expected to have significant implications for global trade and commerce, and Pakistan has been quick to respond to the news. According to a statement released by Pakistan, the country is aware of the agreement and has seen reports and content related to it.
Pakistan’s statement emphasized the country’s long-standing friendly relations with the EU, highlighting the benefits of their bilateral cooperation. The EU’s Generalized System of Preferences Plus (GSP+) scheme has been particularly beneficial for Pakistan, with the country enjoying preferential access to the EU market. The GSP+ scheme has been a win-win for both Pakistan and the EU, with the total volume of trade between the two sides standing at an impressive €12 billion.
The statement from Pakistan comes at a time when the country is seeking to safeguard its exports to the EU. With the India-EU free trade agreement (FTA) on the horizon, Pakistan is concerned about losing its tariff edge in the EU market. The GSP+ scheme has provided Pakistan with a competitive advantage in the EU market, and the country is keen to maintain this advantage.
The India-EU FTA is expected to have significant implications for Pakistan’s exports to the EU. With India set to gain preferential access to the EU market, Pakistan’s exports may become less competitive. This could lead to a decline in Pakistan’s exports to the EU, which would have a negative impact on the country’s economy.
In order to mitigate the potential negative impacts of the India-EU FTA, Pakistan is engaging with the EU to safeguard its exports. The country is seeking to negotiate a similar trade agreement with the EU, which would provide it with preferential access to the EU market. This would help to maintain Pakistan’s competitive advantage in the EU market and prevent a decline in its exports.
The EU has been a significant trading partner for Pakistan, with the country’s exports to the EU totaling €7.5 billion in 2020. The EU is also one of the largest investors in Pakistan, with many European companies having a significant presence in the country. The EU’s GSP+ scheme has played a crucial role in promoting trade between the two sides, and Pakistan is keen to maintain this relationship.
In addition to its engagement with the EU, Pakistan is also exploring other options to diversify its exports. The country is seeking to increase its exports to other regions, including the Middle East, Africa, and Southeast Asia. This would help to reduce Pakistan’s dependence on the EU market and make its exports more resilient to external shocks.
The India-EU FTA is expected to have far-reaching implications for global trade and commerce. The agreement is set to cover a wide range of areas, including trade in goods and services, investment, and intellectual property. The deal is expected to increase trade between India and the EU, which would have a positive impact on economic growth and job creation in both countries.
However, the agreement also raises concerns about the potential impact on other countries, including Pakistan. The FTA could lead to a decline in Pakistan’s exports to the EU, which would have a negative impact on the country’s economy. Therefore, it is essential for Pakistan to engage with the EU and other trading partners to safeguard its exports and maintain its competitive advantage in the global market.
In conclusion, Pakistan’s statement on the India-EU FTA highlights the country’s concerns about the potential impact of the agreement on its exports to the EU. The country is seeking to safeguard its exports by engaging with the EU and exploring other options to diversify its exports. The EU’s GSP+ scheme has been a win-win for both Pakistan and the EU, and the country is keen to maintain this relationship. As the global trade landscape continues to evolve, it is essential for Pakistan to remain proactive and engage with its trading partners to promote its exports and maintain its competitive advantage.
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