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EU Warns Pakistan that GSP Plus Benefits Remain at Risk

By Geopolitics Desk · 2026-09-12 · 2 min read
A stack of folded fabric bolts in neutral tones
Illustration: Tradingbird

European officials have stated that legislative changes alone are insufficient to retain preferential market access, citing ongoing concerns over human rights and accountability.

European Union officials and lawmakers have signaled that Pakistan’s preferential access to the European market is under threat, arguing that the mere signing of international conventions is insufficient. According to a report by GN geopolitics/rights (en-US), these warnings come amid deep-seated concerns regarding enforced disappearances, political repression, and the treatment of minorities.

The stance reflects a shift toward demanding verifiable progress rather than symbolic commitments. As the largest beneficiary of the GSP plus program, Pakistan faces significant economic stakes, with the EU emphasizing that future benefits are far from guaranteed without concrete accountability measures.

Legislative commitments face scrutiny

During a September meeting of the European Parliament’s Subcommittee on Human Rights, Spanish MEP Sandra Gomez Lopez questioned the value of Pakistan’s current commitments. She noted that without clear deadlines, measurable targets, and consequences for continued violations, such pledges hold little weight.

This sentiment was reinforced by EU Ambassador to Pakistan Raimundas Karoblis, who described the current situation as a critical moment. He warned that retaining the Generalised Scheme of Preferences Plus requires credible and verifiable progress, moving beyond the introduction of new laws to actual implementation and enforcement.

Economic stakes for textile sector

The economic implications of this diplomatic friction are substantial for Pakistan. Since 2014, the country has enjoyed reduced or zero tariffs on exports entering the European market. In 2024, approximately 7.5 billion euros in Pakistani exports were eligible for these preferences, with a utilization rate nearing 95 percent.

Textiles and garments constitute the majority of these exports, accounting for between 70 and 76 percent of the total. Losing GSP plus status could expose these products to additional tariffs ranging from 9 to 12 percent, a significant cost increase for a sector that relies heavily on competitive pricing in the EU.

Future rules tighten compliance requirements

The European Commission’s latest report for the 2023-2025 period highlights specific areas of concern, including judicial independence, freedom of expression, and forced labor. It noted that despite 273 new cases registered in 2025, there have been no convictions related to enforced disappearances.

Looking ahead, a revised GSP plus scheme takes effect on January 1, 2027, requiring compliance with 32 international conventions instead of the current 27. Pakistan will retain its existing status until the end of 2028, after which it must reapply under these stricter rules. The next phase will test whether Islamabad can bridge the gap between legislative intent and on-the-ground enforcement.

Based on reporting by The Statesman, compiled by the Tradingbird desk.

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