Peshawar, 14 June 2022 (TDI): The European Union arranged the fourth EU-Pakistan Business Forum in Peshawar, today. This was done to help EU and Pakistani businesses do more business with each other.
Three previous events were held in Islamabad, Lahore, and Karachi on the 8th of September, 13th of October, and 17th of November last year.
Representatives of local SMEs from important sectors including handicrafts and carpets, tourism, stone, and gems attended the current event in Peshawar.
Meanwhile, during the Business Forum session in Peshawar, the participants were briefed about incorporating Pakistani SMEs into the country’s export supply chains by utilizing the GSP+ plan granted to Pakistan by the European Union.
🇪🇺 Charge’d Affaires to 🇵🇰 Thomas Seiler presides over 4th episode of 🇪🇺 -🇵🇰 Business Forum in #Peshawar. Key sector reps handicrafts & carpets, tourism, stone & gems informed about making SMEs part of export supply chains using GSP+ know more: 👇https://t.co/17zBgRzutT pic.twitter.com/pmoDrPppTG
— EUPakistan (@EUPakistan) June 14, 2022
In addition, the initiative will assist in identifying new export areas to broaden and diversify exports. Pakistan’s GSP+ status means that two-thirds of its tariff lines can enter the EU market duty-free, and the rest can enter with preferential charges.
The EU Charge’d Affaires to Pakistan, Thomas Seiler stated, “We have traveled to Peshawar today to host the 4th EU-Pakistan Business Forum in the hope and confidence that it will increase trade prospects, particularly for small and medium-sized businesses.”
Moreover, Thomas Seiler stated that, “We also anticipate that the initiative would enable exporters to realize the full benefits of the EU-granted GSP+ concessions to Pakistan by establishing contacts in the EU market, paving the path for SMEs to become true economic development engines. ”
EU-Pakistan Trade Partnership
The 2004 Cooperation Agreement governs the bilateral commercial relationship between the EU and Pakistan. Enhancing bilateral trade and investment is also part of the EU-Pakistan five-year engagement strategy, which began in 2012.
Significantly, to encourage the expansion of bilateral trade, the EU and Pakistan have formed a Sub-Group on Trade. The Sub-Group on Trade is overseen by the EU-Pakistan Joint Commission, and it is here that people discuss changes in trade policy in general.
Pakistan’s Trade Preferences
- By giving Pakistan GSP+ trade preferences, the EU helps Pakistan join the global economy and grow its economy over time.
- GSP+ allows over 76 percent of Pakistan’s exports, such as textiles and apparel, duty and quota-free entry into the EU.
- Nearly 20% of Pakistan’s global exports come from this sector. Pakistan’s export diversification should be aided by the GSP+ preferences.
An Overview of the Market
- The EU is Pakistan’s second-largest trading partner. In 2020, the EU will account for 14.3% of all trade and buy 28% of all exports from Pakistan.
- Pakistan was the EU’s 42nd largest trading partner in terms of goods in 2020, accounting for 0.3 percent of EU trade.
- In 2020, textiles and apparel will account for 72% of Pakistan’s total EU exports.
- Machine and transport equipment (33.5%) and chemicals will account for the majority of Pakistan’s EU imports in 2020. 22.2 percent by 2020
- Textiles and garments account for more than 80% of Pakistan’s exports to the EU.