APTMA expresses reservation over NDMA to India

10 Feb '14

2 min read

The All Pakistan Textile Mills Association has expressed reservation over granting of non-discriminatory market access (NDMA) to India.

In a letter to the Commerce Secretary, APTMA chairman Muhammad Yasin Sidik expressed reservations to the Pakistan Government granting NDMA to India, both in view of the current economic situation in Pakistan and due to the existing non-tariff barriers (NTBs) that prevent free-flow of Pakistani textiles to the Indian market.

The letter draws the Government’s attention towards internal situation, where production has been cut by about 20 percent owing to energy shortages and power tariff, which is 15 cents per unit in Pakistan compared to only 9 cents in India.

Moreover, Pakistani textile industry faces increased financial cost, as the interest rates in the country are about 20 percent higher than those prevailing for their counterparts in India.

The letter also points out that India is net exporter of cotton after meeting its domestic requirement, whereas Pakistan’s cotton production always remained short of demand, forcing the industry to import.

Dwelling on the problems faced by Pakistani manufacturers while exporting to India, the letter states that India has very effective tariff and non-tariff barriers (NTBs) in place, which include counter veiling duties, advelorem duties, etc.

In addition, Indian Government also provides rebates and subsidies, like the 3 percent rebate on export of yarn and fabric, which reduces the cost of Indian textiles.

Mr. Sidik said if a free market access is granted to India at this juncture, without addressing APTMA’s reservations would lead to closure of Pakistani textile industry.

The latest APTMA position is in contrast to the organization’s earlier stance of favouring opening of trade with its neighbor.

Recently, Pakistan’s Textile and Commerce Minister KhurramDastagir Khan said that the Government is planning to accord NDMA status to India, instead of the earlier Most Favoured Nation (MFN) status.

Fibre2fashion News Desk - India

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