Temporary easing of trade curbs by US/EU: Pakistani exports may get upto $3 billion boost

Pakistan may get $3 billion increase in exports in the short term with the lifting of the trade restrictions against Pakistan by the United States and Europe, textile industry circles said. Pakistan's textile exports have increased impressively since 2003 when the EU had enhanced duty-free quota for textile exports for Pakistan, marking $10.3 billion by the end of June 2010.
Pakistan has again secured trade relief from the European Union, waiving tariffs on certain textile products from Pakistan for up to three years, starting in January. However, much depends on WTO reaction to the EU waiver, likely to be taken up anytime.
Meanwhile, Pakistan enjoys duty-free status on about $200 million worth of its exports as a beneficiary of the US Generalised System of Preferences program, but these do not include textile products. Textile circles said that the United States had imposed a $315 million tariff penalty on Pakistani exports last year, or about 10 percent of their total value. Because textile products are taxed heavily, Pakistan pays disproportionate tariff rates in comparison with more diversified economies.
The All Pakistan Textile Mills Association (Aptma) leadership has been persuading the US administration at all appropriate forums for more and more trade concessions. They have also been critical to the snail's pace developments in the US Senate on the passage of law on establishment of Reconstruction of Opportunity Zones (ROZs). According to them, the US has not responded to Pakistan's textile industry in a befitting manner despite the frontline state role played by Pakistan in the war against terrorism.