Pakistan Asks U.S. and Europe to Reduce Textile Tariffs

By Jim.Robinson|August 26, 2010

In the aftermath of the worst flood in its history, Pakistan is once again asking the United States and Europe to lower their import tariffs on textile goods. The most recent request comes with a new sense of urgency, however, given that 20 percent of Pakistan is underwater and nearly 20 million of its citizens have been displaced by the floodwaters.

The country has made this request before, saying that improved access to those markets will provide better employment opportunities and lure young people away from radical ideologies. Pakistani textile professionals say that a reduction of the tariffs would be more beneficial than aid packages when it comes to combating extremists, who thrive by recruiting the unemployed youth.

Approximately 15 percent of the country’s cotton crop (two million bales) has already been destroyed by the flooding, raising fears of shortages for textile companies. It’s a harsh blow for Pakistan’s textile industry, which has suffered in recent years as China began to dominate the market through its much greater economies of scale. Textile goods generate about half of the nation’s 2010 export income, accounting for more than US$10.3 billion.