Open AccessThe GSP+ Status of Pakistan in the European Union: Challenges and Prospects
Author(s) -
Muhammad Riaz Shad
Publication year - 2021
Publication title -
global political review
Language(s) - English
Resource type - Journals
eISSN - 2707-4587
pISSN - 2521-2982
DOI - 10.31703/gpr.2021(vi-ii).01
Subject(s) - beneficiary , diversification (marketing strategy) , vulnerability (computing) , european union , corporate governance , politics , institutionalism , political science , business , tariff , development economics , economics , economic growth , economic policy , international trade , finance , computer security , marketing , computer science , law
The EU granted GSP+ status of Pakistan aimed to foster economic stability and good governance in the country. However, Pakistan's progress vis-a-vis both objectives remains far below the potential. It could not significantly take advantage of enhanced tariff reductions under GSP+ to realize the diversification and value-addition of its exports. Meanwhile, Pakistan's performance in implementing 27 UN conventionsmandatory for a GSP+ beneficiaryneeds improvement. The EU assessed the country's overall performance, in this regard, as satisfactory but noted certain human rights violations. In this connection, it has recently started a process for possible 'temporary withdrawal' of Pakistan's GSP+ status. Drawing on the theory of Discursive Institutionalism, this paper analyses challenges and prospects for the GSP+ status of Pakistan. The paper argues that the GSP+ withdrawal will aggravate the economic vulnerability of Pakistan; however, the EU will possibly not exercise this option in view of various economic and political factors.