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 of the potential implications. Pakistan, in particular, has been keenly observing the developments, and has now released a statement in response to the announcement.
Commenting on the India-EU trade deal, Pakistan stated, “We are aware of this agreement. We have seen reports and as well as the content.” The Pakistani government further emphasized its 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 significant factor in Pakistan’s exports to the EU, providing the country with preferential access to the European market. With the total trade volume between Pakistan and the EU standing at €12 billion, it is clear that the GSP+ scheme has been instrumental in fostering economic cooperation between the two parties.
However, with the India-EU FTA now on the horizon, Pakistan is understandably concerned about the potential impact on its own exports to the EU. The Indian government has been actively pursuing FTAs with key trading partners, including the EU, in a bid to boost its exports and enhance its economic competitiveness. The “mother of all trade deals” with the EU is expected to provide Indian exporters with significant tariff advantages, potentially undercutting Pakistan’s competitive edge in the European market.
Pakistan’s concerns are not unfounded, given the similarities in the export profiles of the two countries. Both India and Pakistan have a significant presence in the textile and apparel sector, with a large portion of their exports destined for the EU market. With the India-EU FTA likely to reduce or eliminate tariffs on Indian exports, Pakistani exporters may find themselves at a competitive disadvantage, struggling to maintain their market share in the EU.
In light of these developments, Pakistan has engaged with the EU to safeguard its exports and prevent any potential loss of its GSP+ tariff edge. Pakistani officials have been in talks with their EU counterparts, seeking assurances that the India-EU FTA will not adversely impact Pakistan’s exports to the EU. The Pakistani government is keen to ensure that its exporters continue to enjoy preferential access to the EU market, and is exploring options to enhance its own trade cooperation with the EU.
The India-EU FTA is expected to have far-reaching implications for the global trade landscape, with potential consequences for countries like Pakistan that have traditionally enjoyed preferential access to the EU market. As the trade dynamics continue to evolve, it remains to be seen how Pakistan will navigate the changing landscape and ensure that its exports remain competitive in the EU market.
In conclusion, Pakistan’s statement in response to the India-EU trade deal reflects its concerns about the potential impact on its exports to the EU. With the GSP+ scheme having proven to be a win-win for bilateral cooperation, Pakistan is keen to safeguard its exports and prevent any loss of its competitive edge in the European market. As the trade negotiations between India and the EU move forward, Pakistan will likely continue to engage with the EU to protect its interests and ensure that its exporters remain competitive in the global market.
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