News
Pakistan active for access to US textile market
ISLAMABAD, Nov 27 : Pakistan is actively pursuing the Bush Administration to grant market access to its textile sector in the wake of October 8 earthquake.
Before this earthquake, the Bush Administration had refused to grant market access in the textile sector because their strong internal lobbies were the staunch opponents to the idea of granting market access to anyone, especially in the textile sector.
“Pakistan’s textile sector may remain unable to perform up to the desired mark due to devastation caused by the earthquake. Market access to the US is essential to achieve the desired exports target during the current fiscal,” a high-level official said while giving background briefing about Islamabad’s endeavours to get access to US textile market.
Pakistan had already asked the Bush Administration to allow Qualified Industrial Zones (QIZs) along with bordering areas of Afghanistan for proving incentives to products meant for export purposes. Israel and Jordan are currently enjoying the QIZ facility for providing incentives to their exportable products.
Pakistan is standing with the US in its so-called war against terrorism in the aftermath of 9/11 scenario when the Bush Administration took military action to oust the Taliban regime from Afghanistan. Afterwards, Pakistan’s military had started operation on its own volatile tribal areas to apprehend al-Qaeda and Taliban supporters and dozens of military personnel lost their lives during the operation.
“As we have done a lot in this war against terrorism and on reciprocal basis Pakistan’s exports should be given incentives by giving edge to our products in their market,” a high-level official said.
Now Pakistan has again presented new demand for obtaining market access in the textile sector, which the US had refused earlier due to their strong internal lobbies.
Commerce Minister Humayun Akhtar Khan left for US on Saturday for pending market access issues, which need urgent attention from the United States Trade Representative (USTR), Rob Portman and the US State Department.
After the devastating earthquake of October 8, the commerce minister wrote to Ambassador Rob Portman, the USTR that this large-scale catastrophe had caused huge displacement of both skilled and unskilled labour in manufacturing, particularly in the textile sector of Pakistan.
Much of the labour from these areas has gone back home to care for their children and this phenomenon has created a huge void in labour availability in the textile manufacturing industry.
Under the circumstances, Pakistan was unlikely to maintain its current export levels to the USA, unless it was allowed favourable market access, for which Pakistan has already submitted a proposal to the US government. In view of the challenges Pakistan is confronted with, the commerce minister will actively follow-up the proposals filed with the US government.
The visit starting from 28th November to last till December 3, 2005. The most important issue is of market access for Pakistan textiles for which Pakistan has been urging the US authorities at every available opportunity.
Another important objective of the commerce minister’s visit is that USA and Pakistan have institutional arrangements for cooperation in trade and investment for which both countries had signed a Trade and Investment Framework Agreement (TIFA) in 2002.
Over the past years, Pakistan has made good progress in resolving some of the important issues that US authorities always raised in bilateral meetings, like Intellectual Property Rights, the Westinghouse case, etc.
The time is now appropriate to ask the US for the next TIFA meeting to discuss bilateral trade and investment issues. The minister will also discuss the updated position of the ongoing negotiations between Pakistan and the USA on the proposed Bilateral Investment Treaty (BIT).
In addition to his meetings with USTR and high officials of State Department, Commercial Counselors New York and Los Angles have arranged his meetings and receptions with importers’ association, media, think tank and opinion makers.