Pakistan Reviews Impact of India-EU Trade Deal
Pakistan is reviewing the potential impact of the India–European Union Free Trade Agreement on its export sectors, especially textiles, as industry groups warn that duty-free access for Indian goods to the EU could weaken Pakistan’s competitive edge in key markets.
Exporters Warn of Competitive Pressure
Textile exporters and analysts say India’s newly gained tariff-free access to the EU market may make Indian products more competitive against Pakistani exports, which have traditionally benefited from preferential treatment under the EU’s GSP+ scheme. They caution that this could erode Pakistan’s market share in European apparel and textile segments.
Government Assesses Options
Pakistan’s commerce officials said they are assessing how the trade deal might affect national exports. The government also reaffirmed its commitment to maintaining strong trade ties with the EU while identifying possible measures to support vulnerable sectors.
Market and Sector Concerns
Industry representatives noted that textiles are a significant part of Pakistan’s export economy, with a large portion of shipments destined for European markets. They suggested exploring incentives for local exporters and enhancing competitiveness to mitigate the impact of increased competition from Indian products.
