Pakistan looks set to snag a European Union perk it has long coveted: admission to the bloc’s GSP+ trade programme. But the death last week of Osama bin Laden in a compound just up the road from Islamabad may cast a shadow over the country’s entry.
The Generalised System of Preferences, or GSP, is an EU programme that aims to help developing countries by reducing tariffs on their exports to Europe. GSP+ is an even better bargain. For the poorest countries, it eliminates tariffs altogether, provided they commit to protecting human rights and good governance. Together, the programmes covered some €53.3bn in EU imports in 2009.
By a narrow margin, Pakistan has repeatedly missed out on GSP+ in the past. It seems its economy is a bit too dynamic, based on the numerical criteria cooked up by EU trade wonks. That should now change after Karel De Gucht, the trade commissioner, won commission support on Tuesday for a GSP revamp. Read more