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 agreement, dubbed the “mother of all trade deals”. This move has sent ripples across the globe, with many countries taking notice of the potential implications of this agreement. Pakistan, in particular, has been closely watching the developments, and has now released a statement in response to the announcement.
Commenting on the India-EU trade deal, Pakistan said, “We are aware of this agreement. We have seen reports and as well as the content.” This statement suggests that Pakistan is closely monitoring the situation and is aware of the potential consequences of the agreement. Pakistan’s response is not surprising, given the country’s own trade relations with the EU and its concerns about the potential impact of the India-EU deal on its own exports.
Pakistan maintains long-standing friendly relations with the EU, and the two sides have a history of cooperation on trade and economic issues. The EU’s Generalized System of Preferences (GSP+) scheme, which provides preferential access to the EU market for certain countries, has been a key aspect of Pakistan’s trade relations with the EU. The GSP+ scheme has proven to be a win-win for both Pakistan and the EU, with bilateral trade between the two sides standing at €12 billion.
The EU’s GSP+ scheme has been instrumental in promoting Pakistan’s exports to the EU market. The scheme provides duty-free access to the EU market for a wide range of products, including textiles, leather goods, and sports equipment. Pakistan’s exports to the EU have increased significantly since the country was granted GSP+ status in 2014. The country’s textile exports, in particular, have benefited from the scheme, with the EU becoming one of the largest markets for Pakistani textiles.
However, the India-EU trade deal has raised concerns in Pakistan about the potential loss of its tariff edge in the EU market. The deal is expected to provide Indian exporters with preferential access to the EU market, which could erode Pakistan’s competitive advantage. Pakistan’s exports to the EU could face increased competition from Indian exporters, who will enjoy similar or even better market access under the new agreement.
In response to these concerns, Pakistan has engaged with the EU to safeguard its exports and protect its trade interests. The country has been in talks with the EU to ensure that its GSP+ status is maintained and that its exports continue to receive preferential access to the EU market. Pakistan has also been exploring other options to diversify its exports and reduce its dependence on the EU market.
The India-EU trade deal is a significant development in the global trade landscape, and its implications will be closely watched by countries around the world. Pakistan’s response to the agreement reflects its concerns about the potential impact on its trade relations with the EU and its efforts to protect its exports. As the situation continues to evolve, it will be important to monitor the developments and assess the implications of the agreement for Pakistan and other countries.
In conclusion, Pakistan’s statement on the India-EU trade deal reflects its awareness of the potential implications of the agreement and its efforts to protect its trade interests. The country’s long-standing friendly relations with the EU and its participation in the GSP+ scheme have been instrumental in promoting its exports to the EU market. However, the India-EU deal has raised concerns about the potential loss of Pakistan’s tariff edge in the EU market, and the country is taking steps to safeguard its exports and maintain its competitive advantage.
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