Pakistani Textile Sectors Square Off over Duty-Free EU Imports

Two major sectors of Pakistan’s textiles industry are engaged in a war of words over a European Union (EU) package of 75 items that can be imported from Pakistan, duty-free, beginning in 2011. There is a large number of raw textile materials on the list and some value-added products as well.

The raw material producers are thrilled with the development and look forward to greater demand for many of their products, including gray cloth, cotton yarn and various fabrics. Indeed, Pakistani President Asif Ali Zardari expressed gratitude for the EU willingness to grant trade concessions in an effort to bolster his nation’s economy, which is under severe pressure due to the massive flooding it recently endured. The value-added sector, on the other hand, has grave concerns that so many of the raw textiles materials they need domestically will be in short supply due to the lack of import duties in EU countries.

The Chairman of the All Pakistan Textile Mills Association (APTMA), Ejaz Gohar, has estimated that the access to EU markets will help the Pakistani textile industry generate an additional $2.5 billion, in addition to providing a large number of employment opportunities. Sources believe that APTMA will hold a press conference soon to address this issue and answer the questions of the value-added textile manufacturers.