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 comprehensive free trade agreement (FTA), often referred to as the “mother of all trade deals.” The announcement has sent ripples across the global trade landscape, with many countries taking notice of the potential implications of this agreement. Pakistan, in particular, has been closely following the developments and has now released a statement commenting on the India-EU FTA.
According to reports, Pakistan’s statement acknowledges 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 further emphasizes Pakistan’s long-standing friendly relations with the EU, highlighting the mutually beneficial nature 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 crucial aspect of Pakistan’s trade relations with the EU. The scheme provides preferential access to the EU market for Pakistani exports, allowing them to compete with other countries on a more level playing field. The GSP+ scheme has been instrumental in boosting Pakistan’s exports to the EU, with the total trade volume between the two sides standing at an impressive €12 billion.
However, the India-EU FTA 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, Pakistani exporters may find it challenging to compete with their Indian counterparts. The Indian economy is significantly larger than Pakistan’s, and its industries are often more developed and competitive. As a result, Pakistani exporters may struggle to maintain their market share in the EU, potentially leading to a decline in exports and economic growth.
In light of these concerns, Pakistan has engaged with the EU to safeguard its exports and ensure that its trade relations with the EU remain unaffected by the India-EU FTA. Pakistani officials have been in talks with their EU counterparts, seeking assurances that the GSP+ scheme will continue to provide preferential access to the EU market for Pakistani exports. The EU has been a significant trading partner for Pakistan, and the country is keen to maintain and strengthen its trade relations with the bloc.
The India-EU FTA is a significant development in the global trade landscape, with far-reaching implications for countries like Pakistan. As the EU and India work to finalize the agreement, Pakistan will be closely watching the developments, seeking to protect its trade interests and maintain its competitive edge in the EU market. The statement released by Pakistan is a clear indication of the country’s commitment to its trade relations with the EU and its determination to safeguard its exports in the face of growing competition from India.
In conclusion, the India-EU FTA has significant implications for Pakistan’s trade relations with the EU. While the country acknowledges the agreement and its potential impact, it is committed to maintaining its long-standing friendly relations with the EU. The GSP+ scheme has been a crucial aspect of Pakistan’s trade relations with the EU, and the country is seeking to ensure that its exports continue to receive preferential access to the EU market. As the global trade landscape continues to evolve, Pakistan will need to remain vigilant and proactive in protecting its trade interests and maintaining its competitive edge in the EU market.
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