'Exporters to suffer huge losses from EU concessions'

Value-Added Textile Forum (VTF) leader Muhammad Aasim Shah has said that ministries of commerce and foreign affairs and exporters, to get duty-free access to the European Union markets, have to bear huge losses when they would meet the demand of the foreign buyers after payment of duty.
Briefing local journalists about his experiences in Heimtex festival, he said that the government is going to announce 2011 as 'Year of Export'. But at Heimtex, the biggest textile fair in the world recently held in Frankfurt, Germany, last week was a source of disappointment among the exporters of Pakistan.
As buyers did not get the benefit of zero rating as announced from EU, they are moving their business back to China and India. Aasim said that after much struggle and demand of the exporters of Pakistan, the European Union realised the sacrifices of Pakistan in war against terror and recent flood ravages and announced duty-free access for 75 different textile commodities from Pakistan to their market from the January 1, 2011. But regretfully the EU deferred this for next three months as Indian lobby at European Union was so effective and influential that they forced EU to hold the decision over this relaxation to Pakistan.
He said: "It is complete failure of our foreign policy and lobbyists as we could not maintain this relaxation. As a 'front ally' in war against terror, Pakistani exports and business have suffered much as nobody cares to take risk to visit Pakistan. Duty relaxation was announced in the middle of the year and it brought a good sign that importers moved to Pakistan to enjoy the duty-free facilities, and record shows that we had a very positive growth over exports on last few months and considering this aspect".
Aasim said that importers are of the view that Pakistani government failed to convince the member countries of EU over this issue where the lobby against Pakistan is stronger.
He suggested that Pakistan can avail an opportunity of next EU joint meeting session to get approval in its favour. He said this is also a matter of prestige of exporters of Pakistan as well as the government of Pakistan.
He said that President, Prime Minister and foreign minister should raise this issue at international fora to get maximum concession and to safeguard Pakistan's economy and trade.
Aasim said that due to non-finalisation of the deals regarding duty-free access of 75 articles, hundreds of orders were diverted to Pakistan's competitors like Bangladesh, Sri Lanka and China. "Though buyers showed great interest in our products, yet we could not convince them regarding the settlement of tariff issue which is still pending". He stressed that it is high time that the government should provide all-out support to already entrenched industry to emerge as winner not only for the country but the millions of people dependent on textile sector. He requested Prime Minister Yousaf Raza Gillani, Minister for Textile Industry, and Foreign Minister to strongly take the issue of Duty Free Access with EU to settle the matter as early as possible. He further said that time is running out "and we should cash the opportunity before it's too late," and sympathy of EU in the context of floods is washed away by the strong lobby of the competitors, like India.