Regulatory duty on yarn export to undermine Pakistans case in Brussels Summit-Texglobe

LAHORE (May 28 2010): The imposition of 15 percent regulatory duty on export of yarn would undermine Pakistan's case in the upcoming Brussels Summit, to be held on June 4th. Prime Minister Gilani is expected to make a strong plea to the European Union to grant GSP Plus market access to Pakistan's exports to EU countries.

The Prime Minister has prepared Pakistan's trade diplomacy strategy based on the concepts of trade not aid, free trade and Pakistan's commitment to comply with international agreements and conventions. European trade counsellors based in Pakistan have already complained about the export duty in their interaction with Aptma and their dispatches to Brussels, outlining Pakistan's trade distorting practices, in days preceding the Brussels Summit may be a source of great embarrassment for the prime minister of Pakistan.

The textile experts are of the opinion that the quota and regulatory duty imposed on export of yarn from Pakistan is violation of WTO agreement and Pakistan China Free Trade Agreement. These restrictions would go against the free trade policy of the government of Pakistan.

Although the Ministry of Textile is hiding behind the anticipated short duration of the measures and is expected to remove the restraints before any complaints are received, the experts on international trade feel that even Pakistan's case is based on maintaining a free trade regime in the entire textile chain, without subsidies.

Textile circles pointed out that Aptma has always been advocating free trade. Even though there is shortage of cotton in the country but Aptma has never asked for restrictions on export of cotton despite fulfilling a consumption of about 3 million bales which was more than production, they said and added that quota or duty on export of yarn, although tempting to downstream sector will cause permanent long-term damage and will undermine the trade diplomacy efforts of the Prime Minister.