Revised GSP to be implemented from Jan 2014: Thiebaud

KARACHI: Philippe Thiebaud, ambassador of France in Pakistan, has said that the revised generalised scheme of preference (GSP) will be implemented from January 1, 2014 with greater benefits for Pakistani products accessing European markets.

“It offers the possibility for Pakistani companies to benefit from zero tariffs on all products being exported to the European Union,” said the French ambassador, while talking to a select group of journalists on Tuesday evening.

Thiebaud said that GSP should not be confused with the autonomous trade preferences, covering around 27 percent of all Pakistan trade with the EU and granted by the EU after the flooding in 2010 and 2011. “GSP is a comprehensive scheme, including all products and represents a far greater value for the EU and Pakistan,” he added.

Giving figures of trade volume of Pakistan with the group, the ambassador said that the EU is Pakistan’s single largest trade partner with bilateral trade exceeding $10 billion in 2011.

Under the revised framework, he said, Pakistan would able to send around 6,300 items, including textiles, garments and clothing to the EU markets free of duty.

Thiebaud said that currently standard GSP is being provided to 176 developing countries and territories, including Pakistan, preferential access to the EU through duty reduction for the qualifying products lines in the scheme. “The new regulation will focus better on those countries most in need and will be limited to 89 low and lower middle income countries, taking into account the emergence of more advanced developing countries, which are now globally competitive,” he added.

The GSP Plus, another regime in the new regulation, offers zero duty for the covered product lines to support trade-vulnerable developing countries that have committed to 27 international conventions in the areas of core universal values on human, labour rights, environment and good governance. “Unlike other countries in the region, such as Sri Lanka, Pakistan did not meet the vulnerability criterion in the 2008 regulation,” he said, adding that under the new regulation, the vulnerability criterion has been reviewed to benefit more countries, including Pakistan, to participate in the GSP Plus, provided these countries take the required measures to effectively implement the 27 conventions.

About the trade relations between the two countries, the ambassador said that around 45 French companies are established in Pakistan. In 2011, he said France had exported around 480 million euros to Pakistan and the volume of trade on both sides was one billion euros in total with trade balance in favour of Pakistan.

Thiebaud said that big French companies such as Total, Lafarge, Hyper star and L’Oreal have invested in Pakistan.

“In energy sector, total investment in the thermal plants by France through British Power International exceeds $1.3 billion,” he added.

About the possibility of the free trade agreement of Pakistan with France or the EU, he said, at present, there would be no chance of such agreement. “In any case, negotiations on the agreement will be with the EU and it will take much longer time,” he added.

To another question about relations with Pakistan, he said: “We continue to develop relations with Pakistan as it has huge potential.”

Thiebaud said that the French government supports continuation of democratic process in Pakistan. “We are also ready to support Pakistan in electoral process in the upcoming general elections,” he added.

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