*Removal of GSP status of Pakistan by EU can be beneficiary fo | DM Stocks

*Removal of GSP status of Pakistan by EU can be beneficiary for Indian Textile*
What is the issue: Earlier in April, the EU had adopted a joint motion for a resolution on the blasphemy laws in Pakistan as it urged the Islamic Republic to opt for a more comprehensive approach to address the abuses of blasphemy laws. As a further development to the same, European Parliament on Monday declared that it was withdrawing Pakistan’s GSP status over the controversial Blasphemy laws
Blasphemy laws: A blasphemy law is a law prohibiting the act of insulting or showing contempt or lack of reverence to a deity, or sacred things, or toward something considered sacred or inviolable.
What is Generalised Scheme of Preferences (GSP) status ? - EU’s GSP removes import duties from products coming into the EU market from vulnerable developing countries. This helps developing countries to alleviate poverty and create jobs based on international values and principles, including labour and human rights.
Pakistan - EU trade relation in numbers - Pakistan is one of the few countries that enjoys GSP status in EU. According to media reports, from CY10 to CY20, EU27 imports from Pakistan have almost doubled, with much of the growth coming in the aftermath of the award of GSP in 2014. EU accounted for 28% of Pakistan’s total exports in CY20. Of the many exports, Home Textile is a key segment where Pakistan has a leadership position in EU accounting for 45%+ of EU's HT imports in value terms as pakistan enjoys 0% duty on HT exports to EU.
What changes for Indian Textile Industry (esp. Home Textile) - India is one of the strongest players in Home Textiles. In US India commands a lion's share with 50%+ share in value terms, where it is a level playing field. However, on account of favorable duty structures in EU (due to GSP for many nations incl. Pakistan) India's share in EU imports have remained subdued (below 15% in last 10 years) as Indian HT products attract ~9.5% duty in EU. In case, GSP status is removed for Pakistan in EU, India stands to gain disproportionately.