Pakistan and a visiting delegation of the European Parliament reaffirmed their commitment to the GSP+ preferential trade framework during talks in Islamabad on Monday. The Pakistani side, however, expressed concern over the withdrawal of duty concessions on ethanol exports and the ongoing Geographical Indication (GI) dispute over Basmati rice.
Under the GSP+ scheme, Pakistan enjoys duty-free access to most EU markets in return for progress on human rights, labor standards, environmental protection, and governance reforms. The European Union remains Pakistan’s largest export destination, particularly for textiles, leather goods, ethanol, and agricultural products.
During the meeting, Commerce Minister Jam Kamal Khan told the delegation that the European Commission’s recent suspension of duty-free treatment for Pakistani ethanol — citing increased export volumes — had undermined competitiveness and negatively affected sugarcane-dependent rural economies, where communities rely on surplus molasses processing for income.
On the issue of Basmati rice, Pakistan emphasized that both Pakistan and India have applied for GI protection in the European Union. The minister urged the EU to ensure a fair and impartial process that recognizes the crop’s cultivation across the Punjab region on both sides of the border.
“The withdrawal of duty concessions on Pakistan’s ethanol exports under the GSP+ scheme has adversely affected rural livelihoods,” the Press Information Department quoted Khan as saying. He also called on the EU to ensure “a fair and impartial decision that acknowledges Pakistan’s heritage and rightful claim to the globally renowned Basmati variety.”
The Ministry of Commerce noted that both issues carry significant implications for Pakistan’s rural economy and farming communities, particularly in flood-affected areas.
Highlighting Pakistan’s progress under the GSP+ monitoring framework, the government reiterated its commitment to implementing reforms linked to human rights and governance standards. It cited Pakistan’s election to the UN Human Rights Council (2026–28), the National Commission for Human Rights receiving “A status” accreditation, and recent legislation such as the Islamabad Child Marriage Restraint Act 2025 and the establishment of the Commission for the Protection of Journalists and Media Professionals.
Pakistan also sought technical assistance and transitional support from the EU to comply with upcoming European market regulations that will affect exports. These include the Carbon Border Adjustment Mechanism (CBAM) for emissions-linked goods, the Corporate Sustainability Due Diligence Directive (CSDDD) on supply-chain oversight, and the EU Deforestation Regulation (EUDR) governing agricultural imports.
The ministry stressed that these evolving requirements will play a key role in determining future access for Pakistani textiles, leather, agricultural, and manufacturing exports to the EU market.