EU’s GSP+ Leverage on Pakistan: Misguided Priorities Amid Its Own Challenges

The European Union's Generalized Scheme of Preferences Plus (GSP+) program has long been a critical trade tool for Pakistan, providing preferential access to European markets for its exports. However, recent EU rhetoric suggests that the GSP+ status is being used as leverage to compel Pakistan into compliance with various political and social demands. While such maneuvers might appear as strategic policy, they reveal a deeper hypocrisy: the EU, particularly Germany, would do well to address its internal challenges rather than attempting to dictate terms to nations like Pakistan.

Germany’s Economic Woes

Germany, the EU’s largest economy and a key driver of the union’s policies, faces significant economic challenges. The once-mighty German industrial engine is sputtering, with its growth shrinking to alarming levels. Factors such as rising energy costs, supply chain disruptions, and competition from emerging markets have put immense pressure on industries that were once the backbone of the German economy.

Volkswagen, one of Germany’s most iconic companies, serves as a bellwether for the broader manufacturing sector. With the electric vehicle revolution underway, Volkswagen struggles to remain competitive, grappling with delayed digitalization and regulatory burdens. The EU’s stringent environmental policies, while laudable in principle, often hinder industrial growth rather than facilitating a transition. Saving Germany’s industrial giants should take precedence over moralizing about Pakistan's trade policies.

Immigration and Social Integration

Germany's immigration problem further compounds its economic struggles. In recent years, the influx of migrants and asylum seekers has strained social services, caused political rifts, and heightened tensions within communities. The government’s inability to create cohesive integration policies threatens social stability. Instead of focusing on Pakistan’s domestic affairs, Germany should prioritize building a sustainable immigration framework that benefits both its economy and its society.

Digitalization Deficit

Another glaring issue is Germany's digitalization deficit. Despite its reputation for engineering excellence, Germany lags behind in digital transformation compared to other developed nations. From outdated public administration systems to a lack of robust digital infrastructure, the shortcomings are evident. Investing in digitalization would not only streamline governance but also enhance industrial competitiveness in the global market.

Misplaced Pressure on Pakistan

Amid these domestic challenges, the EU’s focus on Pakistan through the GSP+ lens seems misplaced. Pakistan has used the program to boost its exports and stabilize its economy, providing jobs and growth opportunities for millions. Threatening to withdraw this status under the guise of human rights or governance concerns undermines the very ethos of mutual respect that international trade agreements are built upon.

Pakistan is already navigating a fragile economy, geopolitical pressures, and the aftershocks of global inflation. The EU’s attempts to impose its priorities through trade mechanisms border on economic coercion, ignoring the principles of equitable trade partnerships.

A Call for Reflection

It is high time the EU, and Germany in particular, reflected on its own priorities. Instead of projecting its influence outward in ways that destabilize its trading partners, the bloc should channel its energies into addressing internal challenges: reviving the German economy, solving its immigration dilemma, accelerating digitalization, and ensuring the survival of its iconic industries.

In the globalized world, sustainable partnerships are built on mutual respect and shared prosperity—not on one-sided demands. Pakistan deserves to be treated as a partner, not as a pawn in the EU’s larger geopolitical game. The EU, and Germany especially, should focus on putting its own house in order before attempting to influence others.