Presentation on theme: "Trade Development Authority of Pakistan"— Presentation transcript:
1 Trade Development Authority of Pakistan EU GSP PlusCurtain Raiser26th December 2013byMujeeb Ahmed KhanHead WTO CellTrade Development Authority of Pakistan
2 What is GSPGeneralised System of Preferences [GSP] is a mechanism in which countries give tariff concessions to developing countries without violating MFN obligations under WTO.Within GSP there are 3 sub arrangements:General Arrangement.Everything but Arms for LDCs.GSP + for countries fulfilling eligibility criteria.
3 E.U GSP and GSP PLUS REGULATION (EU) No 978/2012 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 25 October Applying a scheme of generalized tariff preferences and repealing Council Regulation (EC) No 732/2008.
4 GSP Plus (Special Incentive Arrangement for Sustainable Development and Good Governance). The additional tariff preferences provided under the special incentive arrangement for sustainable development and good governance should be granted to those developing countries which;due to a lack of diversification and insufficient integration within the international trading system,are vulnerable,in order to help them assume the special burdens and responsibilities resulting from the ratification of core international conventions on human and labour rights, environmental protection and good governance as well as from the effective implementation thereof.
5 ELIGIBILITY CRITERIAVulnerability;Exports of that country should not exceed 2% of EU’s global GSP imports. (Pakistan – 1.6%)Seven largest sectors of products contribute more than 75% of its exports to EU. (Pakistan – 94%)It is not a high or upper middle income country as per World Bank criteria. (Pakistan – Low income country)
6 ELIGIBILITY CRITERIA2. Ratification of 27 Relevant ConventionsBeneficiary country for GSP+ shall take following actions relating to the specified 27 international conventions pertaining to Human Rights, Labour Rights, Environment, Narcotics and Good Governance:SignRatifyImplement
7 Overview of the Conventions CategoryNo. of ConventionsHuman Rights7Labour Rights8EnvironmentNarcotics Control3Corruption1
8 What does GSP Plus mean for Pakistan? Duty free treatment for Pakistani products – covering 96% of products exported to the EU by Pakistan.Only the second country in the entire South and South East Asian region to have duty free access to European Union.Competitors in the T&C sector; China, India, Vietnam, Thailand, Indonesia have no duty free access as well as no preferential access – 10% to 14% duty advantage.No possibility of graduation from the EU GSP Scheme.
9 Safeguards in the Textile, Agriculture and Fisheries Sectors (Article 29) When exports increases by at least 13,5 % in quantity (by volume), as compared with the previous calendar year Safeguards apply only if the country exports of a GSP section exceed a threshold of 6% out of this section total EU imports
10 Important time lines The scheme shall apply for a period of 10 years. Every 2 Years the European Commission would present a report on the status of implementation of the Conventions to the European Parliament and the Council.5 years after its entry into force, the Commission should report to the European Parliament and to the Council on the application of this Regulation and assess the need to review the scheme, including the special incentive arrangement for sustainable development and good governance.The 2% vulnerability criteria would be calculated as an average of last 3 consecutive years.
12 Pakistan Export to EU-27 Value in US$ thousand HS code Product label Export performanceExport Projection2009201020112012201320142015All products4,319,3085,206,4006,335,8726,639,8707,003,0327,384,2267,783,451'6302Bed, table, toilet and kitchen linens1,000,6761,181,7381,358,3321,447,3691,526,5311,609,6251,696,648'6203Men's suits, jackets, trousers etc & shorts415,023513,221604,816618,624652,459687,974725,169'4203Articles of apparel&clothing access, of leather or composition leather342,686388,569421,527504,089531,660560,600590,909'6204Women's suits, jackets,dresses skirts etc&shorts174,820261,838419,553324,441342,186360,812380,319'5208Woven cotton fabrics, 85% or more cotton, weight less than 200 g/m2194,656282,879315,164346,807365,775385,685406,537'6105Men's shirts, knitted or crocheted126,917163,442205,325200,188211,137222,630234,666'5205Cotton yarn (not sewing thread) 85% or more cotton, not retail115,646124,977184,175178,440188,199198,444209,172'1006Rice106,603151,406173,192200,238211,190222,686234,725'5209Woven cotton fabrics, 85% or more cotton,weight over 200 g/m296,158132,283168,999163,525172,469181,857191,689'5210Woven cotton fabrics, less than 85% cotton, mxd with manmade fibers, w105,118115,434154,624177,315187,013197,193207,854'6103Men's suits,jackets,trousers etc&shorts, knit/croch74,77984,983134,575120,730127,333134,264141,523'5513Woven fab of syn stapl fib (< 85% of such fiber),mixed with cotton (wt48,115106,268119,327101,410106,957112,779118,876'9018Electro-medical apparatus (electro-cardiographs, infra-red ray app, sy105,44596,653116,709140,084147,746155,788164,210'9506Articles&equip for gymnastics, athletics, or sports/outdoor games nes93,089113,539111,886141,140148,860156,962165,448'5212Woven fabrics of cotton, nes65,72171,98893,49791,78496,804102,073107,592'6115Panty hose, tights, stockings & other hosiery, knitted or crocheted66,45282,08591,34297,035102,342107,913113,747'6109T-shirts, singlets and other vests, knitted or crocheted49,96455,49177,51876,59380,78285,17989,784'4113Leather further prepared after tanning or crusting ""incl. parchment-dressed leather"", of43,10654,91969,34374,37078,43882,70787,179'6104Women's suits,dresses,skirt etc&short, knit/croch41,78356,66268,82064,70168,24071,95475,844'6303Curtains, drapes & interior blinds48,10455,25764,23770,29574,13978,17582,401Other1,004,4471,112,7681,382,9111,500,6931,582,7721,668,9261,759,156% share of top 20 products in total export76.7578.6378.1777.40