Page 19 - January-February-2021

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UK fashion and textile sector

in crisis due to post BREXIT

trade arrangements

The new post-Brexit trade agreement has The consumers on both sides of the English
drastically changed the order of business and Channel are refusing purchases because of the
Tarde in the UK but one such sector that has faced unexpected VAT and tariff charges and the smaller
the most difficulty is the Britain’s fashion and textile companies that also help support the UK’s fashion
industry which is worth £35billion. The red tape industry do not have enough funds to maneuver
and travel restrictions are upsetting complex and do business amidst these new rules.
international supply chains of the fashion industry.
Over 400 prominent fashion experts have written a While the UK govt. spokesperson said, “We are
letter to Prime Minister Boris Johnson addressing working closely with businesses in the fashion
the gravity of the situation. industry to ensure they get the support they need
to trade effectively with Europe, and seize new
“Many firms could be weeks away from going opportunities as we strike trade deals with the
world’s fastest growing markets.” The UK Cabinet
under. We need a radical overhaul of customs Office said it was working carefully with businesses
arrangements including VAT on all goods shipped in the fashion industry to regulate to the new
into the EU by the end of February, or British trading environment and was responsive that
brands will die”, said Designer Katharine Hamnett. some businesses were facing challenges.

Commerce ministry planning a

different approach for exports due to

the downward trend in cotton

The year 2020 proved to be the worst year not only Compared to the actual produce, the target that was
for the people but for cotton production as well. After set for cotton production was 863 kilograms and
the outbreak of Covid-19, there was a downward hardly 635 Kilograms per acre was cultivated whilst
trend recorded by the media reports that shows for the overall production came up to 5.5 million bales.
Pakistan’s cotton production. In 2020, only 3.8 million The cotton area has also reduced by 4pc in 2020
acres of cotton was cultivated. going from 2.9m to 2.5m.

Abdul Razzak Dawood, Advisor to Prime Minister The data showed that Pakistan’s exports to 10
Imran Khan on Commerce and Investment warned markets declined particularly to the United Arab
that the top officials of the commerce ministry are Emirates (UAE) fell by 22% from $607 million last
considering to cut off 10 countries by rebuff country’s fiscal year to this year’s $474 million. The country’s
exports and instead devise strategies with trade exports to the Kingdom of Saudi Arabia fell by 8.2%
attaché. from $217.46 in 2019 to $199.73 in the same period.

January/February 2021