Press Conference by the MOS on Pakistan’s accession to GSP Plus Status.
Government of Pakistan
Ministry of Commerce and Textile Industry
TEXTILE INDUSTRY DIVISION
ISLAMABAD, 31 December 2013:
“The elected government of Prime Minister Nawaz Sharif has made ‘trade nor aid; a reality. The Prime Minister has delivered on the promise he made to the people of Pakistan to improve their economic prospects by achieving market access abroad for Pakistani industry and agriculture.”
This was stated by Minister of State for Commerce and Textile Industry Engr. Khurram Dastgir Khan while briefing the media in Textile Industry Division this afternoon on various aspects of GSP+ trade preferences achieved recently by Pakistan in the 27-member European Union. The Secretary, Textile Industry Division also briefed the media on technical features of the Scheme.
The Minister of State conveyed to the assembled media persons that GSP-Plus Scheme will be applicable until 2023, and was subject to various conditions such as the share of any GSP+ beneficiary country will not exceed 2% of entire EU imports, and ratification and reporting of 27 international conventions on good governance. As per article 14 of the EU regulation after every two years, the EU Commission will present a report to the European Parliament on status of ratification of these conventions.
Engr. Khurram Dastgir Khan advised the media that as per Annex-IX of the EU Regulation-978, the entire textiles and clothing products i.e. HS chapter 50 to 63 are included in GSP+ Scheme and will be duty free from January 01, 2014 although it is informed by our Brussels office that official Notification will be issued on January 6th, 2014.
The Minister of State disclosed that textiles, agriculture and fisheries are deemed sensitive and are under special safeguards in the EU. The textiles and clothing products are placed as Sections 11a (HS Chapter 50 to 60) and 11b (HS Chapter 61 to 63). If the country’s exports of a product exceed a threshold of 6% of total EU imports of that product, then safeguard threshold is 13.5% for annual increase of imported volumes.
The Minister of State also briefed the media on the rules of origin applicable for the GSP+ and informed that regional cumulation is also available.
Engr. Khurram Dastgir Khan declared that GSP+ Scheme will act as like a catalyst to rejuvenate Pakistan’s entire export products range. It will facilitate the complete textiles and clothing value chain to diversify their product mix as in various products in which we do not have competitive advantage will now be competitive vis-à-vis India and China due to zero tariffs. However, textiles and clothing value chain will also be required to upgrade their machinery and produce better value products.
The Minister of State stated that he already had held a meeting with the apparel associations and now would hold meeting with other segments of the textiles value chain to finalize his action plan to facilitate the industry. He said at the moment the Textile Division is working to simplify the temporary importation schemes for the purpose of re-export, arranging weekly data base sharing with the Federal Board of Revenue and releasing fund to pay pending liabilities of Textiles Policy 2009-14, sales tax and drawback refunds.
He said that skilled labor is required to produce additional quantities and he would be ensuring release of funds from EDF to initiate various Training Programmes. He also emphasized that in the long run, he would like to tackle all problems related to the cotton production sector, through legislation as well as interventions through scientific research.
Press briefing on GSP Plus Prsentation.( Please Click Here To Download)
EU GSP Scheme Regulations ( Please Click Here To Download)