The historic decision by British voters (UK) to leave the European Union – a process also known as Brexit – could have a significant negative impact on Pakistan`s exports. Pakistani exports to the UK are currently governed by the EU`s ApS Plus system, and that will change as soon as Brexit comes into force, which is expected to come into force in 2019. This PBC study analyses the feasibility of a free trade agreement between Pakistan and the United Kingdom (UK) after Brexit and calls for Pakistan to take a proactive approach to starting negotiations leading to the signing of a free trade agreement with the UK. From 1 January 2021, the UK Government intends to maintain Pakistan`s access to UK markets under the EU`s GSP programme. The British government also intends to explore ways to develop the UK`s trade relationship with Pakistan in the future. SINGAPORE (Reuters) — Britain said it was once again a major trading power by signing a free trade agreement with the island state of Singapore on Thursday, its latest global agreement, as it prepares to end its transition out of the European Union on December 31. If the sole purpose of free trade is to work with developing countries to develop their economies and if they are able to trade with the world – as the Marshall Plan for Western Europe did 70 years ago – there is certainly no better reason to insist on countries to trade freely to eradicate poverty. In most countries, packaging lists must be presented at the same time as the commercial invoice. The information must match all the information on the business invoice. The GSP regime currently allows 96% of Pakistani exports preferential access to the UK market. A sudden increase in tariffs on MFN rates due to the abolition of the GSP, combined with the expected depreciation of sterling value, is expected to have a disastrous effect on Pakistani exports to Britain. In many cases, although the numbers are very low, we also see that trade begins in many Eastern European countries with which we have not had trade.
And because it is in the EU, one of our biggest export targets, we thought our exports would suffer. Then, of course, there was the issue of the devaluation of sterling, which had the same effect and increased our exports to the United Kingdom – that was our concern. If there were no new rules for everything from trade to energy commitments, financial markets would be shaken, financial markets would be shocked and supply chains wreaked havoc in a world already struggling with the economic costs of COVID-19. What does Brexit mean for trade relations between Britain and Pakistan, and we have been in contact with the new Department for International Trade on this? Immediately after Brexit (well, the referendum took place, Brexit hasn`t happened yet), I received endless requests from exporters on the GSP-Plus, and if that was going to continue.