European Union Ambassador to Pakistan Raimundas Karoblis has said that Pakistan has reached a “highly sensitive” stage in its trade relationship with the European Union, warning that continued preferential access to the bloc’s market will depend on tangible progress in human rights, labour rights, environmental commitments and good governance.
Speaking to Business Recorder, Karoblis said that the next phase of the European Union’s Generalised Scheme of Preferences Plus (GSP+) would place significantly greater emphasis on implementation rather than merely ratifying international conventions or adopting legislation.
He cautioned that GSP+ benefits should not be viewed as permanent or guaranteed, adding that Pakistan’s future status under the revised framework is not assured and that the necessary political decisions now rest with the government.
Describing the current situation as a “highly sensitive juncture”, the ambassador said Pakistan must demonstrate credible and measurable progress in areas covered by the scheme.
According to the latest figures from the European Commission, trade between Pakistan and the European Union reached €12.2 billion in 2025. The EU recorded a trade deficit of €5.2 billion with Pakistan during the period. The bloc accounts for 14.1 per cent of Pakistan’s total trade and remains the country’s largest export destination, while Pakistan is the largest beneficiary of the EU’s GSP+ programme.
More than 85 per cent of Pakistan’s exports currently enter the European market duty-free and quota-free under the scheme. In 2024, more than 88 per cent of eligible Pakistani products benefited from preferential tariff treatment.
The textile and garment sector remains one of the principal beneficiaries, with approximately 89 per cent of Pakistan’s textile and clothing exports to the EU entering under preferential tariffs.
Observers note that the transition to the EU’s revised GSP framework is not only a matter of diplomacy and human rights compliance but also carries significant implications for Pakistan’s textile industry and broader export competitiveness.
The European Union’s updated GSP regulations were signed in June 2026 and published in the EU’s Official Journal on 22 June. The new framework will take effect on 1 January 2027 and remain in force for the next ten years.
Under the revised system, the number of international conventions linked to GSP+ eligibility has increased from 27 to 32. The framework introduces stricter monitoring mechanisms, enhanced sustainability requirements and additional provisions allowing the withdrawal of trade preferences in serious cases.
New areas covered under the scheme include the rights of persons with disabilities, the protection of children in armed conflict, labour inspections, tripartite labour consultations and measures against transnational organised crime. In the environmental sphere, the Paris Agreement has replaced the Kyoto Protocol as a key benchmark.
The updated framework also places particular emphasis on human rights and democratic governance. While progress in areas such as women’s rights, legislation against violence and restrictions on the death penalty has been acknowledged, concerns have reportedly been raised regarding enforced disappearances, extrajudicial killings, freedom of expression and the situation of journalists.
On labour rights, the new framework stresses that ratification of conventions alone will no longer be sufficient. Effective implementation of labour protections, including labour inspections and tripartite consultation mechanisms, will be a key requirement for countries seeking to retain GSP+ benefits.