ISLAMABAD: Pakistan and a visiting delegation of the European Parliament reaffirmed their partnership under the GSP+ preferential trade framework during talks in Islamabad on Monday, while Pakistan raised concerns over the withdrawal of duty concessions on ethanol exports and the ongoing Geographical Indication (GI) dispute over Basmati rice.
The GSP+ scheme grants Pakistan duty-free access to the EU market for most exports in exchange for progress on human rights, labor protections, environmental commitments and governance reforms. The EU is Pakistan’s largest export destination, particularly for textiles, leather, ethanol and agri-food products.
At Monday’s meeting, Pakistan’s Commerce Minister Jam Kamal Khan told the delegation that the European Commission’s suspension of duty-free treatment for Pakistani ethanol earlier this year, citing increased export volumes, had reduced market competitiveness and impacted sugarcane-linked rural economies, where farming communities depend on surplus molasses processing for income.
On Basmati, Pakistan noted that both Pakistan and India have sought Geographical Indication (GI) protection for the rice in the European Union, and urged the EU to ensure a fair and impartial process that reflects the crop’s cultivation across the Punjab region on both sides of the border.
