Home / Knowledge / News / Textiles / Textile producing countries oppose EU concession to Pakistan
Textile producing countries oppose EU concession to Pakistan
Dec '10
The European Union's proposal of granting duty free access to Pakistan's textile goods as a relief measure against the devastating floods has faced strong opposition from countries like India, Peru and Bangladesh.

These countries have notified the World Trade Organisation (WTO) that granting such preferential access is not the right way to help a nation, as it would prove detrimental to the interests of other competing nations.

The WTO's Committee on trade in goods during its recent meeting deferred the decision on sanctioning the EU's proposal of granting a duty free access to 75 Pakistani items including 64 textile items, as the three countries opposed the same. The decision on the proposal would now be taken during the next Committee meeting to be held towards the end of January, 2011.

If Pakistani textile industry is granted such preferential treatment it would prove detrimental for the Indian textile industry, as Pakistan is amongst the strongest competitors of India in the EU market.

EU proposes to grant duty-free access to 75 items for a period of three years from January 2011 onwards, which is believed to add up to around € 900 million in terms of import value.

Though, India's last year's garment and textile exports totalled to $5.9 billion which is higher than double the exports of Pakistan worth $2.2 billion, but still India is feared to lose its market share to Pakistan if the latter is granted duty-free access as the EU levies an import duty of around 6 to 12 percent on these items.

Bangladesh has proposed that if the EU's proposal is sanctioned, it should be given the compensation for the trade loss that it would suffer due to such preferential treatment.

The proposal is not being opposed only by the competing nations, but several other textile producing nations within the EU like Spain, Italy and Portugal, who have also voiced their discontent.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Rahul Bhadani

Navigating through catalogues is a bit hasslesome

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Eamonn Tighe
Nature Works LLC

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search