Pakistan Raises Alarm Over EU Ethanol Decision, Cites Harm to Farmers

Pakistan has formally raised serious concerns with a visiting European Union delegation regarding the recent withdrawal of GSP preferences for ethanol, a move the government stated has adversely affected the livelihoods of local farmers. The issue was highlighted by Federal Minister for Commerce Jam Kamal Khan, who noted that ethanol was Pakistan’s largest non-textile export under the preferential trade scheme.

According to an official report today, the minister’s remarks came during a meeting with the European Commission”s GSP+ Monitoring Mission, led by Mr. Sergio Balibrea, Advisor to the GSP+ Directorate in DG TRADE. The delegation was also accompanied by Mr. Raimundas Karoblis, the EU Ambassador to Pakistan.

During the discussions, Khan reaffirmed Pakistan”s commitment to the EU”s GSP+ scheme and expressed confidence that the upcoming 5th Biennial Review would acknowledge the nation”s progress in implementing 27 related international conventions, despite facing major challenges.

Looking ahead, the Commerce Minister urged that the new GSP+ framework should maintain its developmental focus and avoid imposing excessive new conditions on beneficiary countries.

Another significant trade issue addressed was the pending Geographical Indication (GI) registration for Basmati rice. Khan conveyed his hope that the EU would ensure an impartial process as both Pakistan and India await a decision.

Furthermore, he encouraged the EU to consider granting GI protection to other unique Pakistani products, including Sindhi Ajrak, Pink Salt, and Mangoes.

While raising these concerns, the minister also acknowledged the EU”s vital role as Pakistan”s largest export market, crediting the GSP+ status with significantly supporting the country”s trade, employment, women empowerment, and sustainable development.

The meeting concluded with both sides reaffirming their dedication to strengthening Pakistan-EU trade relations under a stable and predictable GSP+ partnership.