Impact of GSP Plus Status on Pakiston's Economy Essay

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IMPACTS OF GSP PLUS STATUS ON PAKISTAN’S ECONOMY

During last days Pakistan succeeded to secure the long awaited duty-free access to the European markets for four years, by winning Generalized Scheme of Preferences (GSP) Plus status with an impressive count of votes.
The EU’s "Generalized Scheme of Preferences" (GSP) gives developing countries a vital access to EU markets and contributes to their economic growth by allowing their exporters to pay lower duties on their exports to the EU.
GSP PLUS status will allow 20 per cent of Pakistani products to enter 27 EU countries without any tariffs and 70 percent on preferential rates. This would enable Pakistan to export more than one billion dollar worth textile goods to the international market. Pakistan will enter the GSP plus club from January 1, 2014.Previously, under GSP Plus status many different products like surgical instruments, PET, ethanol, sports goods, plastics & textile products were being exported to European Union. But, in Pakistan’s case, major attraction lies in textile sector. Textile and clothing of Pakistan, exports to the EU currently constitute over half of the country’s total exports to the bloc worth $9.5 billion.Pakistan will face tough competition from Sri Lanka and Bangladesh as they are already enjoying duty free access to European market.
Pakistan’s textile industry contributes 50% of the country's total exports and have an 8.5% share in gross domestic product (GDP), providing about 40% jobs in…