Pakistan releases statement after India and EU announce ‘mother of all trade deals’
Recently, India and the European Union (EU) announced a landmark trade agreement, which has been dubbed as the “mother of all trade deals”. This agreement is expected to have significant implications for global trade and commerce, and has understandably sent ripples across the world. Pakistan, which has traditionally enjoyed good relations with the EU, has now released a statement commenting on this development.
According to a statement released by Pakistan, “We are aware of this agreement. We have seen reports and as well as the content.” This suggests that Pakistan is closely monitoring the situation and is aware of the potential implications of this trade deal. 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.” This highlights the strong economic ties between Pakistan and the EU, and the importance of the EU’s Generalized System of Preferences (GSP+) scheme for Pakistan’s exports.
The GSP+ scheme provides preferential access to the EU market for certain developing countries, including Pakistan. Under this scheme, Pakistan enjoys zero or reduced tariffs on a wide range of exports to the EU, including textiles, leather goods, and agricultural products. The scheme has been instrumental in boosting Pakistan’s exports to the EU, and has helped to increase bilateral trade between the two sides.
However, the announcement of the India-EU trade deal has raised concerns in Pakistan that the country may lose its competitive edge in the EU market. India, which is a major competitor to Pakistan in terms of exports, is likely to benefit significantly from the trade deal, which could lead to a surge in Indian exports to the EU. This could potentially erode Pakistan’s market share in the EU and undermine the country’s exports.
In response to these concerns, Pakistan has engaged with the EU to safeguard its exports and ensure that the country’s trade interests are protected. According to reports, Pakistan has approached the EU to discuss the potential implications of the India-EU trade deal and to explore ways to mitigate any negative impacts on Pakistan’s exports. The EU has assured Pakistan that it values its relations with the country and is committed to maintaining the existing level of trade cooperation.
The Pakistan-EU trade relationship is significant, with the EU being one of Pakistan’s largest trading partners. In 2020, bilateral trade between Pakistan and the EU stood at €12 billion, with Pakistan’s exports to the EU totaling €6.3 billion and imports from the EU totaling €5.7 billion. The EU is also one of the largest investors in Pakistan, with many European companies having a significant presence in the country.
In light of the India-EU trade deal, Pakistan is seeking to diversify its exports and explore new markets. The country is also looking to increase its trade with other regions, including the Middle East, Africa, and Southeast Asia. Additionally, Pakistan is seeking to improve its trade competitiveness by investing in infrastructure, enhancing its business environment, and promoting entrepreneurship and innovation.
In conclusion, the announcement of the India-EU trade deal has significant implications for Pakistan, which is seeking to safeguard its exports and maintain its competitive edge in the EU market. While Pakistan values its relations with the EU and is committed to maintaining the existing level of trade cooperation, the country is also exploring new markets and seeking to diversify its exports. As the global trade landscape continues to evolve, Pakistan must remain vigilant and proactive in promoting its trade interests and ensuring that its exports remain competitive in the global market.
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