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Pakistan needs to press for original EU concessions
25
Nov '10
Pakistan Denim Manufacturers and Exporters Association (PDMEA) has requested the government to send a delegation to EU to voice the concerns of exporters in Pakistan, regarding the EU's recent proposal on duty free access.

Shahid Soorti, Chairman PDMEA, in a statement said that, Pakistani government should also send delegates to the European Apparel and Textile Confederation, and should get in touch with all other concerned persons for the purpose.

He revealed that, EU has revised its rules with regard to the 75 Pakistani products which were granted duty free access in EU, and has imposed more stringent restrictions, thereby reducing its effectiveness and favourableness to a greater extent.

Giving up to the pressures from the domestic textile industry, the EU has slashed the concession period from three years to two years, and has decided that it would allow the concession for the third year only after reassessment.

Also EU has imposed further restrictions, whereby no duty free access will be available for the items which cross the growth rate of 20 percent per annum. But then, they are eyeing strong growth in some of the key export items like fabrics, socks, towels, women jeans, etc., which are all included in the list of 75 items, Soorti said.

He stated that, it is very much possible that they may attain this 20 percent growth rate within the initial six to eight months of the first year itself and may be required to forego their duty free status, as the items in this list would remain to be the main focus of producers in concerned fields, like the women jeans is included in this list of 75 items, the woven garment manufacturer along with their overseas buyers would be focusing more on buying women jeans than men jeans to take advantage of the duty-free benefit.

Soorti said that, Pakistan should rather press the EU that it must go along its original proposal of granting duty-free access to 75 items for three years, and nothing less than that.

Fibre2fashion News Desk-India


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