Home / Knowledge / News / Textiles / T&C industry jobs might be at risk due to concessions to Pakistan
T&C industry jobs might be at risk due to concessions to Pakistan
07
Oct '10
The European textile and apparel industry is deeply concerned over the Trade Concessions the EU is planning to give to Pakistan. In a letter endorsed by the Board of Euratex and addressed to the President of the European Council Van Rompuy, the Commission President Barroso, the Belgian Presidency Y. Leterme, the Industry considers unacceptable that the EU is prepared to sacrifice its T&C Industry to the unreasonable demands of one of the most powerful and dominant players in the world market.

Although sympathetic with the difficult situation endured by the people of Pakistan, Euratex is convinced that the envisaged trade concessions will have no impact whatsoever in improving their life conditions.

In this sense EURATEX President (Dr.) Peter Pfneisl recalled in his letter that: “Everyone is well aware that the T&C Industry of Pakistan is located outside the flooded areas. Moreover Pakistan T&C Industry is composed of very competitive, well equipped and efficient companies. Most of these companies are performing remarkably well today with average turnovers between 100-200 million € well above the EU T&C average size. So in fact the benefits of the EU concessions will go to them and not to the populations in need”

He added “We are not prepared to be continuously the sector to let go whenever something has to be given for political reasons to a Third Country. There is no economic or political rationale that can justify the systematic undermine of a sector's interests and sensitivities. Even more when, as it looks the case regarding Pakistan, we are only at the beginning of the concessions since apart from the request for a Waiver at WTO level there is also the intention to change the GSP+ criteria in the new regime with the sole purpose of benefiting this country”

In fact the Commission is finalizing its WTO Waiver Proposal with a list of 81 products that would benefit from duty free access to the EU market, out of which more than 60 are Textile and Clothing!. These concessions will affect the entirety of the supply chain still present in Europe as they range from yarns and fabrics up to garments and home textiles. The negative impact will be felt immediately across the EU 27 member states but also in other countries benefiting from preferential relations with the EU, in particular Turkey.

Moreover, the Waiver, allegedly a temporary measure, would be in place for 3 years. Euratex is strongly opposing any measures that last longer than 1 year. This larger period only supports our idea that the Commission has already taken the autonomous decision to give GSP+ status to Pakistan by changing the vulnerability criteria when the new Regime will enter into force in 2014. In practice this decision will only broaden the gap in GSP utilization between the more vulnerable and the more competitive countries in favour of the latter.

This decision will be taken on the back of a sector that has already paida high price in the economic crisis with the lost of around 270.000 jobs in 2009! The business recovery is still bleak and this decision is going to put additional strain on our companies that will likely precipitate job losses and company closures. Independent forecasts indicate that up to 120.000 jobs might be at risk in the coming 3 years!

We thus urge the EU Authorities to take into full consideration the interests and sensitivities of our Industry which, only in the EU, employs directly over 2.000.000 people and more than 3,5 millions workers if we take into consideration Turkey who is member of the Customs Union and thus obliged to accept unilaterally these measures.

EURATEX


Must ReadView All

Indian govt relaxes cabotage rule for cotton transport

Textiles | On 25th May 2018

Indian govt relaxes cabotage rule for cotton transport

The Government of India has relaxed cabotage rules for transportation ...

Courtesy: Teejay Lanka

Textiles | On 25th May 2018

Teejay Lanka doubles production capacity at Indian mill

Teejay Lanka, one of Sri Lanka’s largest textile manufacturers, has...

Courtesy: Messe Frankfurt/Yarn Expo Autumn edition

Textiles | On 25th May 2018

Yarn Expo Autumn 2018 scheduled earlier

Over 500 exhibitors are expected at the Yarn Expo Autumn 2018, being...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search