European Commission VP Kaja Kallas Expresses Surprise Over Pakistan-EU Trade Volume, Says €12 Billion Exceeds Pakistan's Combined Trade with US and China

ISLAMABAD - European Commission Vice President and EU High Representative for Foreign Affairs Kaja Kallas expressed surprise at the volume of trade between Pakistan and the European Union, revealing that bilateral trade exceeds €12 billion - a figure larger than Pakistan's combined trade with the United States and China .

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European Commission VP Kaja Kallas expressed surprise over Pakistan–EU trade, noting it exceeds €12B and is larger than Pakistan’s combined trade with the U.S and China.

She said the EU remains Pakistan’s largest export market, adding 2026 offers stronger ties. pic.twitter.com/CaFXL7B6Qy

- Zard si Gana (@ZardSi) June 1, 2026

Speaking during the 8th session of the Pakistan-EU Strategic Dialogue in Islamabad, which she co-chaired with Deputy Prime Minister and Foreign Minister Ishaq Dar, Kallas highlighted that the European Union remains Pakistan's largest export destination, adding that 2026 offers the potential for even stronger ties between the two partners .

EU Remains Pakistan's Largest Export Market

"This is bigger than Pakistan's combined trade with the United States and China," Kallas said, noting that many observers underestimate the depth of the EU-Pakistan economic relationship .

According to official figures, bilateral goods trade stood at approximately €12.2 billion in 2025, with the EU accounting for more than 30 percent of Pakistan's total exports . Kallas emphasized that Pakistan is the world's leading beneficiary of the EU's Generalized Scheme of Preferences Plus (GSP+), which provides duty-free or reduced-duty access to European markets for two-thirds of Pakistani export lines .

Kallas noted that the strong trade figures had come as a surprise to many, stressing that the EU remains Pakistan's most significant economic partner despite growing engagement with other major economies .

2026 Offers Stronger Ties

The EU's top diplomat expressed optimism about the future of Pakistan-EU relations, stating that 2026 presents a unique opportunity to deepen cooperation across multiple sectors .

"We are deepening cooperation on a wide range of issues including climate resilience, digital infrastructure, clean energy, migration, and mobility," Kallas said during a joint press stakeout following the strategic dialogue .

She also highlighted strong people-to-people links between Pakistan and Europe, noting that Pakistan has topped the global rankings in the EU's Erasmus Mundus scholarship program for the fifth consecutive year - a testament to the growing educational and cultural exchanges between the two sides .

Recognition of Pakistan's Regional Role

Beyond trade, Kallas praised Pakistan's diplomatic efforts in the region, particularly its role as the primary mediator between the United States and Iran .

"Pakistan is a major regional power and an important partner for the European Union," Kallas said. She noted that Pakistan's diplomatic efforts have helped prevent a return to full-blown war on several occasions, adding that these efforts are "recognized and appreciated across Europe" .

She also pointed to a "tenuous diplomatic opening" to extend ceasefire arrangements and reopen the Strait of Hormuz, emphasizing that any temporary understanding must evolve into broader negotiations addressing Iran's nuclear program and regional stability .

The GSP+ Framework

A major focus of the talks was Pakistan's continued access to the EU's GSP+ trade preference scheme, which is due for review. While Kallas reaffirmed the EU's commitment to the partnership, she also issued a reminder that continued preferential access depends on measurable progress in governance, labor rights, environmental protection, and human rights compliance .

Deputy Prime Minister Ishaq Dar, who co-chaired the dialogue, called the GSP+ framework a "win-win partnership" and expressed optimism that the newly launched EU-Pakistan Business Forum could become a regular fixture to boost economic ties .

What Comes Next

Kallas' visit - her second to Pakistan within six months - underscores the growing importance Islamabad has assumed in European foreign policy calculations . With Pakistan positioning itself as a key mediator in global conflicts and the EU seeking reliable partners for trade and regional stability, 2026 could mark a turning point in bilateral relations.

For now, Kallas' remarks serve as both a validation of existing ties and a challenge to deepen them further. As one European official put it: "Pakistan has Europe's attention. The question is what both sides do with it."