Falling cotton production sparks concerns over GSP+ status

The European Union (EU) has decided to re-review Pakistan's Generalised Scheme of Preferences Plus (GSP+) status in June 2025, despite initially granting the preferential trade status until 2027. Cotton Ginners Forum Chairman Ehsanul Haq told The Express Tribune that a team from the EU recently visited Pakistan to assess compliance with 27 conventions. EU officials have warned that failure to meet these requirements could result in the suspension of GSP Plus benefits. Haq highlighted concerns over Pakistan's cotton sector, stating that production this year is about 50% below target due to flawed policies regarding imported cotton and cotton yarn. Despite being 34% lower than last year, large unsold reserves of cotton and cotton yarn in ginning factories and spinning mills have created anxiety across the supply chain.