APTMA, EU open talks on GSP+ renewal

LAHORE: Pakistan’s textile industry and the European Union have opened discussions on securing a renewal of the EU’s Generalised Scheme of Preferences Plus (GSP+) trade facility, with EU Ambassador Raimundas Karoblis stressing that progress on human rights, labour and environmental reforms would be crucial to retaining the scheme beyond its 2027 expiry. The ambassador, accompanied by First Secretary Kert Ajamaa, Development Cooperation Manager Theis Munksgaard-Hansen and Senior Economist/ Trade Advisor Husnain A Iftakhar, met senior office-bearers of the All Pakistan Textile Mills Association (APTMA) at APTMA House on Friday. APTMA Chairman Kamran Arshad, Chairman-elect Asad Shafi and other senior representatives received the EU delegation. Ambassador Karoblis told the industry leaders that Pakistan would have to demonstrate concrete progress in implementing and legislating international conventions required for continued GSP+ eligibility. He urged the business community, particularly exporters, to accelerate reform efforts and engage with the government on concerns raised by the European Commission regarding human and labour rights, governance and environmental standards. He also appreciated the textile sector’s efforts towards sustainability, saying such measures would be an important factor in the EU’s assessment of any application for renewal. APTMA Chairman Kamran Arshad said the EU was Pakistan’s largest trading partner and that GSP+ had enabled the country to export 78 percent of its goods to the European market duty-free. He said the facility had contributed to employment generation, investment and technological upgradation while supporting Pakistan’s efforts to achieve net-zero carbon emissions by 2050. Arshad warned that any loss of GSP+ could severely affect exports, costing the country more than Rs1 trillion annually and potentially leading to mill closures and unemployment. He said the impact could also extend to the banking, real estate and transport sectors as textile companies accounted for more than 40 percent of outstanding bank loans. He added that a disruption of the facility could also undermine progress on labour rights, anti-corruption measures and narcotics-control initiatives. APTMA Chairman North Asad Shafi said the textile industry had invested billions of dollars in EU-sourced machinery under its expansion plans. He urged the ambassador to support efforts to fast-track a Pakistan-EU free trade agreement, similar to the India-EU FTA, as a safeguard against any possible lapse of GSP+. Shafi also briefed the ambassador on APTMA’s compliance initiatives, including its advocacy for a proposed National Compliance Entity, and reaffirmed the association’s commitment to addressing compliance gaps ahead of Pakistan’s GSP+ reapplication. Copyright Business Recorder, 2026

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