Archive · 28 Sep 2025
Pakistan Faces Potential Loss of EU Duty-Free Trade
Imagine Pakistan and the EU have a special trade deal where Pakistan gets to sell goods to Europe without paying extra taxes.
This deal is called GSP+.
To keep this deal, Pakistan has to promise to follow rules about human rights, workers' rights, and protecting the environment.
A new report says Pakistan isn't keeping its promises.
This includes things like mistreating people, not protecting workers, and damaging the environment.
The EU might now decide to take away Pakistan's special trade deal, which would mean Pakistan would have to pay taxes to sell goods in Europe.
This could affect how much money Pakistan makes from selling goods to Europe.
Pakistan may lose its duty-free access to EU markets under the GSP+ scheme.
A white paper details persistent violations of the GSP+ agreement.
Violations include human rights abuses, labor rights issues, and environmental concerns.
Pakistan has benefited from €6.2 billion in tariff-free exports in 2023 under GSP+.
The EU suspended preferences for ethanol imports from Pakistan in June 2025 as first enforcement action.
- Who
- Pakistan and the European Union
- What
- Pakistan may lose duty-free access to the EU market.
- When
- Since 2014, with a potential review of status.
- Where
- EU markets and Pakistan.
- Why
- Due to persistent violations of the GSP+ agreement's core conditions.
- Trade Scheme
- GSP+ (Generalised Scheme of Preferences Plus)
- Potential Loss
- Duty-free access to the EU
- Value of Exports (2023)
- €6.2 billion
- GSP+ Benefits
- Tariff-free access to EU markets
- Key Issue
- Pakistan's compliance with international conventions