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 deal, 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 closely watching the developments, given its own trade relations with the EU. In a statement released by the Pakistani government, they acknowledged the agreement between India and the EU, stating, “We are aware of this agreement. We have seen reports and as well as the content.”
The statement highlights Pakistan’s awareness of the deal and its potential implications on the country’s trade relations with the EU. Pakistan has long maintained friendly relations with the EU, which has been a significant trade partner for the country. The EU’s Generalized System of Preferences (GSP+) scheme has been particularly beneficial for Pakistan, providing preferential access to the EU market. As the Pakistani government noted, “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 GSP+ scheme has been instrumental in boosting Pakistan’s exports to the EU, with the country enjoying preferential tariffs on a range of products. However, with the India-EU trade deal, there are concerns that Pakistan’s preferential access to the EU market may be eroded. The Indian government has been negotiating a free trade agreement (FTA) with the EU, which could potentially grant Indian exporters similar, if not better, access to the EU market. This has raised fears in Pakistan that its GSP+ tariff edge may be lost, making its exports less competitive in the EU market.
In light of these developments, Pakistan has engaged with the EU to safeguard its exports and ensure that its trade relations with the bloc remain unaffected. The Pakistani government has been in talks with EU officials to discuss the potential implications of the India-EU trade deal and to explore ways to maintain its preferential access to the EU market. As reported by the EU, Pakistan’s exports to the EU have increased significantly since the GSP+ scheme was implemented, with the country’s exports growing by over 30% in the past year alone.
The EU has been a significant trade partner for Pakistan, accounting for a substantial portion of the country’s exports. The GSP+ scheme has played a crucial role in promoting trade between the two sides, with Pakistan enjoying preferential tariffs on a range of products, including textiles, leather goods, and agricultural products. However, with the India-EU trade deal, there are concerns that Pakistan’s exports may face increased competition from Indian exporters, who may enjoy similar, if not better, access to the EU market.
To mitigate these risks, Pakistan has been exploring ways to diversify its exports and expand its trade relations with other countries. The government has been actively pursuing FTAs with other countries, including China, Turkey, and the ASEAN region. Additionally, Pakistan has been investing in its infrastructure, including its ports and transportation networks, to improve its trade competitiveness and reduce its reliance on traditional trade routes.
In conclusion, the recent announcement of the India-EU trade deal has significant implications for Pakistan’s trade relations with the EU. While Pakistan has maintained friendly relations with the EU, the country is aware of the potential risks posed by the India-EU trade deal. To safeguard its exports and maintain its preferential access to the EU market, Pakistan has engaged with the EU and is exploring ways to diversify its trade relations with other countries. As the global trade landscape continues to evolve, Pakistan must remain vigilant and proactive in protecting its trade interests and promoting its exports.
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