Brief by Shorts91 Newsdesk / 04:58am on 02 Feb 2026,Monday India Global
The India-EU Free Trade Agreement has alarmed Bangladesh and Pakistan, threatening their preferential European market access. The deal grants Indian goods duty-free access to 93% of EU exports, potentially eroding advantages Pakistan and Bangladesh enjoyed through GSP Plus and Everything But Arms schemes. Pakistan's textiles, constituting 75.8% of EU imports, face serious competition. Bangladesh, losing LDC status in November 2025, will lose duty-free EU access in three years while India gains it. Pakistani traders compared the economic impact to Operation Sindoor, calling it an "economic front." Industry experts warn both countries must secure alternative trade agreements or face declining competitiveness as India's textile exports could grow 20-25% annually. (PC: Reuters & X)
