{"id":63743,"date":"2018-02-14T08:20:28","date_gmt":"2018-02-14T08:20:28","guid":{"rendered":"http:\/\/www.bnreport.com\/brexit-threatens-pakistans-trade-perks-with-the-eu-3\/"},"modified":"2018-02-14T08:20:28","modified_gmt":"2018-02-14T08:20:28","slug":"brexit-threatens-pakistans-trade-perks-with-the-eu-3","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/brexit-threatens-pakistans-trade-perks-with-the-eu-3\/","title":{"rendered":"Brexit threatens Pakistan\u2019s trade perks with the EU"},"content":{"rendered":"<p>Britain\u2019s departure from the EU robs Pakistan of a key ally in its fight to preserve preferential trading terms with the EU.<\/p>\n<p>Since 2014, Pakistan has been the leading beneficiary of the EU\u2019s preferential trading program for \u201cvulnerable\u201d developing countries, known as the Generalized System of Preferences Plus (GSP+). The scheme grants manufacturers, particularly Pakistani textilemakers, tariff-free access to Europe in exchange for Islamabad implementing reforms on human rights, working conditions, climate change and good governance.<\/p>\n<p>Britain prides itself on having won this sweetheart deal for its former colony, a country of 210 million people, where many families have relatives living in the U.K. \u201cIt was us, Britain, who ensured Pakistan got tariff-free access to the European Union,\u201d former Prime Minister David Cameron said <a href=\"https:\/\/wp.me\/a4MXoN-3ss0\" rel=\"noreferrer\" target=\"_blank\">at a campaign event<\/a> during the 2014 European election.<\/p>\n<p>British members of the European Parliament, who played a key role in lobbying for Pakistan\u2019s GSP+ status, reckon that Pakistan would be increasingly isolated after Brexit. They said that they had to overcome resistance from EU heavyweights back in 2014, and warned that antipathy could well return when GSP+ comes up for renewal in January 2020.<\/p>\n<blockquote>\n<p>Several EU countries have deep concerns about Pakistan\u2019s record on human rights, and were cool on the idea of bringing it into the free-trade fold in January 2014.<\/p>\n<\/blockquote>\n<p>\u201cThey\u2019re not really going to have anybody here really looking out for them,\u201d said British Conservative MEP Sajjad Karim, who is of Pakistani origin and founded the Friends of Pakistan group in the European Parliament. \u201cThe politics that we were able to deal with \u2026 nobody\u2019s going to do that.\u201d<\/p>\n<p>The loss of GSP+ would be a big blow to Islamabad. Almost three-quarters of all European imports from the GSP+ program (which also covers countries such as the Philippines and Sri Lanka) come from Pakistan. Some 82 percent of these purchases are textiles and clothing. Pakistan\u2019s exports to the EU increased by 38 percent over the three years since it signed on in 2014, rising to \u20ac6.2 billion in 2016 (EU exports were valued at \u20ac5.3 billion). The bump in exports turned the EU into Pakistan\u2019s largest trade partner.<\/p>\n<h3>Human rights concerns<\/h3>\n<p>Several EU countries have deep concerns about Pakistan\u2019s record on human rights, and were cool on the idea of bringing it into the free-trade fold in January 2014. Since then, Islamabad has upped the stakes by reintroducing the death penalty in December 2014, a massive taboo for the EU.<\/p>\n<p>Karim said France and Germany both signaled opposition back in 2014. Portugal, a textile producing country, said it opposed Pakistan\u2019s designation because it maintained \u201ca more stringent interpretation\u201d of the GSP+ criteria.<\/p>\n<p>\u201cBringing [German Chancellor] Angela Merkel and [former French President] Fran\u00e7ois Hollande to the table \u2026 that was David Cameron,\u201d Karim said. He said Paris was opposed, while Germany was on the fence. The French and German missions in Brussels declined to comment when asked about their stance on the continuation of GSP+ after 2020.<!--more--><\/p>\n<p>Pakistan confirmed the U.K.\u2019s role by awarding Karim the Star of the Great Leader, a civilian honor. His commendation specifically stated his contribution in getting Pakistan into the GSP+ club.<\/p>\n<p> <img decoding=\"async\" src=\"https:\/\/www.politico.eu\/wp-content\/uploads\/2018\/02\/5859839831_859915e567_o-714x438.jpg\"\/><\/p>\n<p>Tory MEP Sajjad Karim is of Pakistani origin and founded the Friends of Pakistan group in the European Parliament | Flickr via Creative Commons 2.0<\/p>\n<p>Wajid Khan, another British MEP of Pakistani origin, said that Pakistani diplomatic missions across Europe need to be \u201cmore proactive\u201d after Brexit. Asked whether he was optimistic about the continuation of GSP+, Khan said: \u201cIt\u2019s a challenge.\u201d<\/p>\n<p>The EU reviews the GSP+ program\u2019s progress every two years. If it finds that any country failed to make enough progress on its commitments, it can suspend the scheme.<\/p>\n<p>But despite Pakistan\u2019s patchy record, Islambad won a clean bill of health from the Commission in an interim assessment last month. The <a href=\"http:\/\/trade.ec.europa.eu\/doclib\/docs\/2018\/january\/tradoc_156536.pdf\" rel=\"noreferrer\" target=\"_blank\">latest report<\/a> broadly concluded the GSP+ was working across the countries involved, but also cautioned that Pakistan\u2019s progress has been \u201cmixed.\u201d The Commission said it had \u201cserious concerns\u201d about human rights issues and urged Pakistan to \u201cstep up its efforts\u201d to keep to its promises.<\/p>\n<p><a href=\"https:\/\/www.politico.eu\/wp-content\/uploads\/2018\/01\/2017_GSP-Plus-and-Labour-Standards-in-Pakistan_FES-Shadow-Report.pdf\" rel=\"noreferrer\" target=\"_blank\">A separate report<\/a> published in October last year by the Pakistan Workers Confederation, one of the local monitors of the GSP+ program, noted Pakistan\u2019s lack of progress on labor rights. \u201cUnfortunately, labor law reform has never been any [Pakistani] government\u2019s priority,\u201d the report said. According to a report by Human Rights Watch, other conditions \u2014 progress on women\u2019s rights, religious freedom, protecting activists and journalists \u2014 has either remained <a href=\"https:\/\/www.hrw.org\/world-report\/2017\/country-chapters\/pakistan\" rel=\"noreferrer\" target=\"_blank\">poor or deteriorated<\/a>.<\/p>\n<p>Asked about the Commission\u2019s report during a press briefing, Commission spokesperson Daniel Rosario said: \u201cThis is a dynamic process \u2026 This is also a way for engaging directly with these countries to address these problems.\u201d<\/p>\n<p>Madi Sharma, who leads the Women\u2019s Economic and Social Think Tank, opposed Pakistan\u2019s continuing membership, saying: \u201cthe Commission\u2019s just turning a blind eye\u201d to Pakistan\u2019s violations of the agreement.<\/p>\n<h3>Preserving stability<\/h3>\n<p>For their part, the Pakistanis seemed unperturbed. \u201cWe have good relations with many countries and many MEPs and that will continue after Brexit,\u201d a senior Pakistani diplomat said, speaking on the condition of anonymity. The embassy did not provide an official statement.<\/p>\n<p>Pakistan can draw some heart from the fact that it is very difficult to lose GSP+. So far, only Sri Lanka has ever lost the designation mid-term \u2014 from 2010 to 2017 \u2014 but that was in the extreme circumstances of a war.<\/p>\n<blockquote>\n<p>\u201cNext time round, when we\u2019re not here, Pakistan\u2019s in trouble. They\u2019re in big trouble\u201d <em>\u2014 British Conservative MEP Sajjad Karim<\/em><\/p>\n<\/blockquote>\n<p>Pakistan also profits from a growing belief that trade interaction is the best way to maintain stability in a nuclear-armed country plagued by tribal and Islamist unrest.<\/p>\n<p>Even France is stressing the importance of commercial interaction. According to Pakistan\u2019s Nation newspaper, Marc Bar\u00e9ty, French ambassador to Pakistan, last month visited the Lahore Chamber of Commerce and Industry (LCCI) to stress <a href=\"https:\/\/nation.com.pk\/19-Jan-2018\/punjab-safest-place-for-business-french-envoy?show=blockshttps:\/\/nation.com.pk\/11-Jan-2018\/einstein-s-love-letters-lps-set-for-asian-exhibits?show=blocks\" rel=\"noreferrer\" target=\"_blank\">that President Emmanuel Macron was prioritizing trade as a way to guarantee economic stability<\/a>.<\/p>\n<p>France\u2019s embassy in Islamabad declined to give more information on the visit.<\/p>\n<p>Rashid Yaqoob, a spokesperson for the LCCI, who attended the meeting with Bar\u00e9ty, noted that the criticism of Pakistan in January\u2019s GSP+ report were \u201cnot encouraging\u201d but predicted the \u201cprogram will keep going.\u201d<\/p>\n<p>Asked how that would be possible, Yaqoob said simply: \u201cbackdoor diplomacy.\u201d<\/p>\n<p>But back in Brussels, MEP Karim was far less sanguine.<\/p>\n<p>\u201cNext time round, when we\u2019re not here, Pakistan\u2019s in trouble. They\u2019re in big trouble,\u201d he said.<\/p>\n<p><a href=\"https:\/\/www.politico.eu\/article\/pakistan-brexit-gsp-trade-eu\/?utm_source=RSS_Feed&amp;utm_medium=RSS&amp;utm_campaign=RSS_Syndication\" rel=\"noreferrer\" target=\"_blank\">Original Article<\/a><\/p>\n<p> [contf] [contfnew]         <img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcRMd3Tz2gX9xSa6CJyaOj2dokBVcrdaT4yY3R3RI7YmL18vCLZZ\"\/> <\/p>\n<h5><a href=\"http:\/\/www.politico.com\/&gt;Politico&lt;\/a&gt;&lt;\/h5&gt;_&lt;\/p&gt;[contfnewc]_[contfnewc]_&lt;\/body&gt;&lt;\/html&gt;\" rel=\"noreferrer\" target=\"_blank\"><\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"<p>Britain\u2019s departure from the EU robs Pakistan of a key ally in its fight to preserve preferential tr..<\/p>\n","protected":false},"author":1,"featured_media":63744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-63743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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