Pakistan: Textile sector seeks duty-free export of apparel to US

The textile sector entrepreneurs have asked a visiting US government delegation to provide access to at least apparel products of Pakistan on zero import duty.

The delegation, comprising executive officer of US president’s office, Trade Specialist of USTR for South Asia and an official of the US embassy, met textile businessmen in Lahore to discuss market access issues.

The US delegation conceded that there were problems in immediate approval by the US Senate of the law about reconstruction opportunities zone in Pakistan’s earthquake- and terrorism-hit regions of Pakistan.

The ROZ bill was passed by the US House of Representatives on June 11, 2009. Since then the bill has not been taken up by the US Senate.

Sources in the meeting informed The News that when the US delegation sought alternative proposals from the businessmen, they requested duty-free access to value-added apparel sector even if with a ceiling of $1 billion in additional exports.

The participants of the meeting pointed out that Pakistan is a minor player in US apparel market of $55.293 billion with exports of only $1.493 billion.

They further pointed out that the apparel exports from Pakistan to United States are at the same level as in 2008 and its share remains stagnant at 2.09 percent.

During the same period China, Vietnam, Indonesia and Bangladesh increased their exports by 22, 13, 10 and 14 percent, respectively, commanding share of 33, 25, 15 and 12 percent in the overall imports of apparel in the US in 2010.

They said even with the $1 billion ceiling, it would revive 30 percent of the closed textile capacities in the first year alone.

They said it would be followed by new yearly investments of $800 million from second year onwards. Since the access would be in labour-intensive apparel sector, it would create 10 million new jobs, 60 percent of them for women.

They said that apparel exporters from Pakistan would grab a small share of other leading exporters to the United States.

They pointed out that currently the majority of apparel exporters are medium-sized enterprises.

They said that these businesses would grow bigger once they get market access in the same way as the apparel sector in Bangladesh.

The sources said that the US delegation avoided making any commitment. It, however, promised that these proposals would be discussed at the higher level when they go back to the United States.

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