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 trade agreement, dubbed the “mother of all trade deals”. This agreement is expected to significantly boost trade between the two regions, with potential implications for other countries, including Pakistan. In response to this announcement, Pakistan has released a statement, acknowledging the agreement and highlighting its own relationship with the EU.
According to reports, the Indian-EU trade deal is expected to increase bilateral trade between the two regions, with estimates suggesting a potential increase of up to 20%. This would make the EU one of India’s largest trading partners, surpassing the United States and China. The agreement is also expected to reduce tariffs on a wide range of goods, including textiles, pharmaceuticals, and automobiles, making Indian exports more competitive in the EU market.
Pakistan, which has traditionally enjoyed a favorable trade relationship with the EU, has taken note of this development. In a statement, Pakistan said, “We are aware of this agreement. We have seen reports and as well as the content.” The statement further added, “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 EU’s GSP+ (Generalized System of Preferences Plus) scheme is a preferential trade arrangement that provides duty-free access to the EU market for certain countries, including Pakistan. The scheme is designed to support sustainable development and good governance in beneficiary countries. Pakistan has been a beneficiary of the GSP+ scheme since 2014, and it has significantly contributed to the country’s exports to the EU.
However, with the announcement of the India-EU trade deal, Pakistan is concerned about the potential impact on its own trade relationship with the EU. The country fears that the new agreement could erode its competitive edge in the EU market, particularly in sectors such as textiles and leather goods. To mitigate this risk, Pakistan has engaged with the EU to safeguard its exports and ensure that its trade relationship with the EU remains unaffected.
In recent months, Pakistan has been actively engaging with the EU to discuss the potential implications of the India-EU trade deal. Pakistani officials have held meetings with their EU counterparts to express their concerns and seek assurances that the new agreement will not harm Pakistan’s trade interests. The EU has reportedly assured Pakistan that the GSP+ scheme will continue to apply, and that the new agreement with India will not affect Pakistan’s trade preferences.
The Pakistan-EU trade relationship is significant, with the EU being one of Pakistan’s largest trading partners. In 2020, Pakistan’s exports to the EU stood at €6.5 billion, while imports from the EU were valued at €5.5 billion. The EU is also one of the largest investors in Pakistan, with significant investments in sectors such as textiles, energy, and infrastructure.
In conclusion, the announcement of the India-EU trade deal has significant implications for Pakistan’s trade relationship with the EU. While Pakistan has expressed concerns about the potential impact of the new agreement, it has also acknowledged the importance of its own relationship with the EU. The country is engaging with the EU to safeguard its exports and ensure that its trade preferences are maintained. As the situation evolves, it will be important to monitor the developments and assess the potential impact on Pakistan’s trade relationship with the EU.
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