Pakistan's textile exports have started showing progress in the EU due to its GSP plus facility. Exports have recorded an increase, especially in apparels by 24 per cent in volume and 30 per cent in value terms from January to December 2014. The European Union has granted Generalised System of Preferences Plus (GSP Plus) status to Pakistan from January 1, 2014 for 10 years.

The GSP Plus status allows almost 20 per cent of Pakistani exports to enter the EU market at zero tariff and 70 per cent at preferential rates. EU trade concessions will benefit Pakistan’s textile and clothing industry to compete with those of regional rivals like Bangladesh, which already have duty-free access to the bloc’s market. The increase in exports is expected to facilitate economic growth and help in generation of additional employment.

GSP Plus status is extended to countries that have applied for the tariff scheme and implemented the 27 international ratified conventions. GSP Plus is granted to those countries that ratify and implement international conventions relating to human and labor rights, environment and good governance. The preferential trade status is subject to review every two years. GSP is a facility granted to developing countries by certain developed countries. It is not negotiated with them. The preferential treatment is non-reciprocal.