Pakistan would be part of the European Generalized System of Preferences (GSP) from January 1, 2006, officials said. The GSP will cover almost hundred percent of Pakistani products that it exports to Europe. All Pakistani products will get concessions; textile and clothing will get a 20 percent concession, officials said adding the other non-textile and clothing areas will have a 3.5 per cent cut in duties. So, officials said, Pakistan is part of the European GSP, has GSPs with America too, but these do not cover textile that is the fundamental difference between European GSPs and American GSPs. European Union is Pakistan's largest trading partner. EU-Pakistan overall trade volume increased from 5.06 billion Euros in 2002 and 5.16 billion Euros in 2003 to 6.09 billion Euros in 2004. At the same time, trade deficit declined due to increase in EU exports and has been recorded at 412 million euros in favor of Pakistan.
