SPDC seminar discusses causes for textile export decline

16 Mar '07

2 min read

Under the World Trade Organization's (WTO's) Agreement on Textile and Clothing (ATC), quantitative restrictions (quotas) on imports from developing countries have been removed, on all textile and clothing items, as of January 1, 2005. Since these restrictions varied from country to country and from product to product, their removal will alter the competitiveness differently for different countries. Countries that are relatively more competitive internationally are likely to observe gains in their existing market shares. It is thus expected that this new environment would have a substantial impact on countries that are major exporters of textiles and clothing.

Pakistan's economy depends heavily on export of textile and clothing for earning foreign exchange. In 2004, these exports accounted for 69 percent of its total exports. There are apprehensions among policymakers and the business community as to how much Pakistan can compete in the quota-free environment. As far the textile and clothing sector, European Union (EU) is a major trade partner of Pakistan.

In 2004, about 27 percent of Pakistan's textile exports were sent to EU market. SPDC's research on "The Elimination of Textile Quotas and Pakistan-EU Trade" is an attempt in assessing Pakistan's position in the post-quota environment in European market.

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Social Policy and Development Center (SPDC)

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