Pakistan Alarmed by EU-India FTA: Exporters Warn of Vanishing Textile Advantage

• Pakistan is reviewing the implications of the newly signed EU-India Free Trade Agreement (FTA), fearing it will erode its competitive edge in the European market.
• The EU-India FTA grants Indian exporters tariff-free access to the EU, potentially neutralizing Pakistan's long-standing advantage under the EU’s GSP+ scheme.
• Pakistani textile exporters, including APTMA, warn that India's duty-free access on 100% of its textile and apparel tariff lines fundamentally changes the competitive dynamic.
• Concerns are heightened by Pakistan's higher domestic production costs, particularly electricity tariffs, which are 25-30% higher than regional competitors.
• Former commerce minister Gohar Ejaz warned that $9 billion in exports to the EU and 10 million jobs are at risk, urging urgent action to cut costs and restore competitiveness.

Why It Matters: Pakistan fears significant economic fallout from the EU-India FTA, especially for its textile exports.