APTMA warns of export threat, urges govt to seek preferential US market access

The All Pakistan Textile Mills Association (APTMA), one of the country’s largest industrial bodies, on Wednesday urged the government to immediately engage with the United States to secure preferential market access for Pakistan’s textile exports.

“We are writing in the context of recent trade developments that materially affect Pakistan’s export competitiveness,” APTMA said in a letter to the Federal Minister for Commerce, Jam Kamal Khan.

The association highlighted that major competitors have secured improved market access to the USA through new trade arrangements.

“India has negotiated a tariff of 18% with the United States, while Pakistan faces around 19%. The European Union and India have concluded a free trade agreement.

Most recently, Bangladesh has secured zero-tariff access to the United States market for garments and made-ups manufactured with American cotton,” it said.

APTMA was of the view that these developments “pose a serious and immediate threat” to Pakistan’s textile and apparel exports.

The association said that the country’s textile sector was already under severe stress due to high energy and input costs, interest rates, and taxes in the region, and an overall difficult business environment.

“Improved market access for competitors, combined with lower input costs, risks further erosion of Pakistan’s export share in our largest market,” said APTMA.

The association proposed that the Ministry of Commerce to seek tariff concessions for Pakistani textile and apparel exports to the United States for products made with American cotton, in exchange for enhanced imports of US cotton.

“We also approached the American Embassy with a proposal for concessional market access,” it said.

“In view of the rapidly changing competitive landscape, we respectfully urge that the Government of Pakistan may kindly approach the United States authorities to seek duty-free access for Pakistani textile and apparel products made from American cotton.

Such an arrangement would support Pakistan’s exports, strengthen bilateral trade, and increase US cotton sales.”