Home / Knowledge / News / Textiles / EU's trade concessions to fetch modest benefits – SBP
EU's trade concessions to fetch modest benefits – SBP
05
Feb '11
According to State Bank of Pakistan (SBP), the shortage of latest as well as pioneering techniques and the incapability of the export sector to fulfill the orders will hinder the realization of the full potential of the trade concession given to Pakistan by the European Union.

From the quarterly report of the SBP on the country's economy, it is evident that the export sector of the country is deficient in latest technology, designing techniques and is marked by the incapability of the exporters to fulfill huge orders.

The European Union has granted trade concessions to Pakistan on 75 items which are mostly associated with the textile industry. Following the legal procedures which include seeking of consent from the European Union governments as well as the parliament, tariff concessions will come into effect.

These 75 items together constitute about 27 percent of the overall exports of Pakistan to European Union. The overall export earnings of Pakistan from various textile items reached one billion dollar in 2009. Average export earnings over the last three years touched $1.2 billion and the country's export share constitutes three percent of the overall imports of European Union.

According to the SBP, the trade concession given by EU to Pakistan would reduce the prices of Pakistani products in European Union. In spite of the fact that the country's unit prices in case of majority of the items is less than that of its competitors, its share in the EU market is much less than the share of its competitors.

Another major problem identified by the SBP is that if lower value commodities are exported to European Union to take the advantage of the trade concessions then it would lead to a problem of raw material scarcity in the local market. Again, if these products are imported then the cost of production would enhance. It would impede the production as well as exports of bed sheets and towels which have not been included under the ambit of tariff concessions.

According to the report, tariff on various categories of yarn is already low so zero-duty on these products would not reduce their unit prices. Certain categories of fabrics and knit-clothing can take the advantage of tariff concessions as the present tariff rates on these items are fairly high.

Fibre2fashion News Desk - India


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Ravindra Jain, Ashish Baid

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

Harmeet Singh

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

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

January 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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