US renews GSP scheme for Pakistan and 120 other countries

ISLAMABAD: US’s Generalised System of Preferences (GSP) scheme has been renewed for Pakistan and 120 other countries till December 2020.

The bill passed by the US House of Representatives permits duty free access for goods from over 120 countries including Pakistan, reported Dawn.

This GSP scheme had already lapsed on December 31^st, 2017 and this bill paves the way for extension till December 2020.

According to a senior official in the commerce ministry, this was the initial obstacle that had been removed in renewal of this scheme and the bill will be forwarded to the US senate for ratification, which will then be signed into law by President Donald Trump.

The official voiced confidence the bill would pass through the US senate without any hiccups although he added the effect on trade volume would remain limited due to little involvement.

All other 120 countries part of this GSP scheme will have to meet the new conditions and the official stated Pakistan remained compliant in all these areas.

The scheme had been reintroduced with retrospective application and was considered it would allow maximum utilization of concessions available.

But official data reveals the availing of this GSP scheme remained restricted in the last few years. The data disclosed the country’s FY16 GSP exports were $247 million, up $180.5 million from FY15.

And the official shared the utilization of this scheme was improving and will be further consolidation due to the depreciation of the Pakistani rupee.

GSP exports constitute 5 percent of the country’s overall exports to the US and non-GSP exports were recorded at $3.4 billion during FY 2016-17.