The European Union (EU) has added six additional conventions to the General System of Preferences (GSP) plus status for Pakistan. According to Business Recorder, Pakistan would retain GSP plus status until 2022, after which the EU will propose new eligibility criteria. In 2020, the EU will account for 14.3% of Pakistan’s overall commerce and absorb 28% of Pakistan’s total exports, making it the country’s second most significant economic partner. Pakistan was the EU’s 42nd largest trading partner in terms of products in 2020, accounting for 0.3 percent of total EU trade. Textiles and garments dominate Pakistani exports to the EU, accounting for 75.2 percent of overall exports to the EU in 2020. Machinery and transport equipment, as well as chemicals, account for the majority of Pakistan’s EU imports (33.5 percent in 2020). (22.2 per cent in 2020).
The EU and Pakistan have formed a Commerce Sub-Group to encourage the growth of two-way trade. The new Sub-Group on Trade, which was established under the auspices of the EU-Pakistan Joint Commission, serves as a venue for talks on trade policy changes in general as well as particular market access issues.