Pakistan reaffirms commitment to 27 Conventions for GSP+ compliance

Amid concerns raised by the European Union (EU) regarding the trial of civilians in military courts, Pakistan has reiterated its commitment to complying with 27 international conventions essential for maintaining its Generalized Scheme of Preferences Plus (GSP+) trade benefits in the EU.

EU Special Representative for Human Rights, Ambassador Olaf Skoog on Tuesday met with Federal Minister for Commerce Jam Kamal Khan on Tuesday to discuss strengthening Pakistan-EU trade and economic cooperation.

According to a statement issued by the Ministry of Commerce following the meeting, the dialogue focused on sustaining and enhancing Pakistan’s trade benefits under the GSP+ scheme while ensuring compliance with international commitments.

Discussions emphasized Pakistan’s adherence to conventions on human rights, labor rights, environmental standards, and good governance.

Minister Jam Kamal Khan reaffirmed Pakistan’s commitment, stating, “Our efforts are not just about meeting international obligations but also improving governance and standards for our own national benefit.”

Ambassador Skoog praised Pakistan’s engagement with the EU and highlighted the mutual benefits of GSP+, which facilitates access for Pakistani exports to European markets.

He also expressed his desire for enhanced collaboration between the EU and Pakistan in multilateral human rights forums.

The minister acknowledged Pakistan’s economic challenges over the past year but noted improvements, including reductions in inflation and interest rates.

Both sides agreed to work closely to ensure Pakistan's continued eligibility for GSP+ status while addressing concerns raised by the EU.

Monitoring compliance through the Treaty Implementation Cell

The Ministry of Commerce has been actively reviewing compliance with the 27 conventions, particularly as the next GSP+ review is scheduled for mid-2025. Officials, speaking on condition of anonymity, noted that responding to EU concerns is a critical task, especially regarding incidents that could affect compliance.

“Even if an issue arises in remote areas of a province that raises EU concerns, the Treaty Implementation Cell (TIC) promptly works on an appropriate response to ensure compliance is maintained,” an official said.

Pakistan benefits significantly from GSP+, with over 76% of its exports, primarily textiles and clothing, entering the EU duty- and quota-free. This represents nearly 20% of Pakistan’s total exports.

What is the TIC?

The TIC was established to help Pakistan meet its international treaty obligations, particularly those related to human rights and labor standards.

TICs have been set up at the federal and provincial levels to monitor and report on compliance with ratified conventions.

The key responsibilities of TICs include developing mechanisms for implementing ratified conventions, assisting provincial departments in documenting compliance, coordinating with federal ministries such as Commerce, Law, and Foreign Affairs, and providing regular updates to the government on treaty obligations.

Established in 2014, the TIC operates under the Ministry of Commerce and plays a crucial role in Pakistan’s engagement with the EU.

The cell collaborates with the Ministry of Human Rights to collect and submit compliance data regarding the 27 conventions.

Importance of GSP+ for Pakistan

GSP+ is a trade incentive program that grants duty-free access to the EU market for countries that commit to good governance, sustainable development, and human rights.

Pakistan is one of eight beneficiaries of this scheme, alongside Bolivia, Cape Verde, Kyrgyzstan, Mongolia, the Philippines, Sri Lanka, and Uzbekistan.EU data from 2023 indicated that Pakistan was the largest GSP+ beneficiary, with exports worth nearly 4 billion euros ($4.2 billion) entering the EU duty-free. Textiles and clothing accounted for 73% of these exports.

Experts warn that Pakistan’s economic policymakers must remain vigilant, as EU member states, along with the UK and the US, hold significant influence over decisions at the International Monetary Fund (IMF), from which Pakistan has secured a $7 billion bailout package.

Losing GSP+ status could reduce Pakistan’s exports by 20-30%, dealing a severe blow to the economy.
EU’s concerns in its last review

In its last GSP+ review report published in November 2023, the European Commission expressed concerns about Pakistan's human rights record, particularly the trial of civilians in military and anti-terrorism courts. The report highlighted that such trials could contravene Article 14 of the International Covenant on Civil and Political Rights (ICCPR), which guarantees the right to a fair trial by an independent tribunal.

The UN Human Rights Committee has stated that civilian trials in military courts should be exceptional and justified by objective and serious reasons. The EU has urged Pakistan to ensure that its judicial practices align with international human rights standards to maintain its GSP+ status.

With Pakistan’s GSP+ status under continuous EU scrutiny, the government has intensified its efforts to meet compliance requirements. The Treaty Implementation Cell and other relevant ministries are actively engaged in addressing EU concerns to secure Pakistan’s trade benefits.

Minister Jam Kamal Khan emphasized the importance of this partnership, stating, “The EU is a key trade partner for Pakistan, and we deeply value our economic and diplomatic ties.”

As Pakistan navigates economic challenges, retaining GSP+ status remains a top priority to ensure continued access to the EU market, sustain export growth, and strengthen global trade relations.