The India-EU free trade agreement is quickly emerging as a turning point for regional trade, and Pakistan is feeling the pressure. The deal gives Indian manufacturers direct, duty-free access to Europe, undermining Pakistan’s preferential GSP Plus status, which once offered a clear advantage in the textile and clothing sector. Pakistani officials insist ties with the EU remain strong, but exporters fear the tariff cushion that prevents sustainable competitiveness will disappear. With exports already down this financial year, warnings are growing that millions of jobs linked to trade to the EU could be affected. For India, the deal strengthens global supply chains and economic clout. For Pakistan, this signals an urgent need to adapt as Europe’s doors open further to Indian products.
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