EUROPEAN UNION'S GENERALIZED SCHEME OF PREFERENCES -GSP+ AND PAKISTAN: A CRITICAL OVERVIEW

Abstract

The Generalized Scheme of Preferences of European Union (EU) aims to help the least developed economies to come out from their vulnerabilities and also improve their overall governance. However, the empirical evidences depicts another story. The beneficiaries who gain help from EU are not able to liberalize their economy or trade policies. The purpose of this study is to explore the real meanings of preferential treatment and the burden bear up by beneficiaries. Pakistan has been included in GSP+ scheme since 2014. Although Pakistan is now the most successful among the other eight beneficiaries, there is still room to progress further besides managing hidden agendas which prevent comprehensive benefits. Apparently there are different pros of GSP+ scheme but there are certain cons too due to which it is very hard for beneficiaries to come out from least developed status. The study recommends that if EU truly wants to help the least developed economies; it should minimize the yardsticks.