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EU duty waiver to boost prospects of textile sector
Dec '10
Pakistan's textile exports are expected to witness a rise of three billion dollars in near future, as United States and Europe waive the trade restrictions imposed on Pakistan, the industry sources revealed. As the EU granted duty-free access for Pakistani textile goods in 2003, there has been a remarkable rise in Pakistan's textile exports since then, and the same was recorded at $ 10.3 billion by close of June, this year.

Now, once again Pakistan has regained trade relief from the EU, whereby certain textile items would enjoy duty-free access in the EU nations for next three years, as it will come into effect from January 1, 2011. But a lot depends upon the action which WTO might take with regard to this duty waiver issued by the EU.

Pakistan, being a beneficiary of the US Generalised System of Preferences program, presently enjoys zero-duty status on around $200 million worth of its exports, but textile products are excluded from this.

As stated by the industry sources, the US penalized the Pakistani exports with a duty of $315 million, last year, which came to around 10 percent of the total value of those exports. As textile goods are subjected to heavy duty, Pakistan has to pay unequal duties compared to other diversified countries.

All Pakistan Textile Mills Association (Aptma) management has been convincing the US authorities at every level for granting the Pakistani textile exports with as many duty concessions as possible. The association leadership has also criticized the slow progress in the US Senate on the passage of law on the setting up of Reconstruction of Opportunity Zones (ROZs). The Aptma management has further claimed that in spite of the lead taken by Pakistan in the fight against terrorism, the US has not yet responded to the country's textile sector in an apt manner.

Fibre2fashion News Desk - India

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