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FTA phase 2 delayed by a month; will
Punjab to make women’s

take effect from Jan 1
hostels for industrial

zones workers
The second phase of the Free Trade Agreement tariff concessions enjoyed by the ASEAN countries.
(FTA) between China and Pakistan will take effect
from January 1, 2020 instead of December 1, 2019 Under the Phase-II of China-Pakistan FTA, both
as it has been delayed for a month reportedly due to countries will liberalise 75 percent of tariff lines for
The Punjab government is considering proposals
help the LCCI members find resolutions for their
delays in government approvals and protocols on the each other. The agreement covers 313 tariff lines of
problems faster.
for setting up of women’s hostels in Punjab’s
Chinese side. US $8.7 billion of Pakistan's overall exports and US
industrial estates for the women working in the $64 billion of China’s global imports. A total of 1,037
Niazi added that the government and LCCI would
factories and industries there, said Provincial
A joint statement is expected to be released after the products will now have duty-free access to the
soon issue a labour card and is considering
Labour Minister Ansar Majeed Khan Niazi.
Chinese approvals are acquired. Chinese market; textile and garments sector is at the
inspection free regime, which would be a favour for
forefront of this deal and will help enhance the
businesses.
Inaugurating the Labour Department Help Desk at
In December, Abdul Razak Dawood, Adviser to the sector’s exports to China as it offers the same duty
the Lahore Chamber of Commerce and Industry
Prime Minister for Commerce, Textile, Industry & free access enjoyed by ASEAN countries. A total of
Production and Investment, announced that the 1,760 or 25 percent of tariff lines are categorized as
LCCI President Irfan Iqbal Sheikh told the minister
(LCCI), he added that the government is also
second phase would come into effect from Decem- Protected Tariff Lines under the agreement and
that the chamber had prepared recommendations
working on the unification of taxation. He said the
ber 1 and it was becoming operational earlier than covers 37 percent of Pakistan's imports from China.
help desk would work as a link and hotline between
for the government to ensure a business-friendly
usual. He said that it usually took a year to make atmosphere in the country.
the ministry and the business community and would
such agreements operational between countries but
because of the special relations enjoyed by both the During the first phase, local manufactures com-
countries, this agreement would become operational plained about the unbalance in the deal, especially
from December 1. the textile sector, which raised concerns about the
Knitwear exports grows by 8.69% in
favours it granted the Chinese textile industry. Tariffs
The textile sector of Pakistan expected to get a boost were imposed on Pakistani garment exports during
in exports to China as the phase II of the FTA the first phase, whereas the country’s competitors
first five months of fiscal year
between China and Pakistan as it offered the same from the ASEAN had duty free access.
Knitwear exports from Pakistan grew by 8.69 period last year.
percent during the first five months of the current
Ethiopia – the next textile
financial year as compared to the exports of the Meanwhile, on month on month basis, textile
corresponding period last year, as per the data of exports from the country also grew by 7.03 percent
Pakistan Bureau of Statistics. in November, 2019 as it was recoded at $1.177
manufacturing hub?
billion against the exports of $1.099 billion during
During the period starting July up till November, the same month last year. However, it decreased by
2019 around 51,240 thousand dozen knitwear 3.10 percent in the month of October, 2019 as
worth $1.320 billion were exported as compared the
textile products worth $1.214 billion were exported
Despite challenges like energy supply, customs China Chamber of Commerce for Import and Export
in thse previous month.
exports of 48,315 thousand dozen valuing $1.215
procedures, lack of backward linkages and insuffi- of Textile and Apparel (CCCT), according to an ITC
billion during the same period last year.
cient skills, Ethiopia has the potential to become a press release.
global textile manufacturing hub with its wide and During the period under review, 206,971 metric tons
of bed wear worth $1.013 billion were exported
The data showed that readymade garments exports
young labour pool, growing market potential, The event attracted more than 100 international
against the exports of 180,960 metric tons valuing
during the same period also grew by 13.19 percent
advantageous trade agreements and strategic buyers, potential Chinese investors, representatives
and $1.156 billion were reported by exporting about
$968.151 million during the same period last year.
position, participants agreed at a recent dialogue in of Chinese and foreign companies in Ethiopia and of
Whereas, around 76,210 metric tons of towels
26,181 thousand dozen readymade garments as
Addis Ababa. Ethiopian institutions. It was followed by field visits to
compared the exports of 19,225 thousand dozen factories in several industrial parks around Addis
worth $317.484 million were also exported against
the exports of 74,657 metric tons valuing $314.348
valuing $1.021 billion during the same period
The dialogue on Ethiopia’s potential to become the Ababa.
last year.
next textile and apparel (T&A) supply base for the million during the same period last year.
world was organised in November by the Internation- The Ethiopian government has also prioritised the
In the last five months, cotton cloth valuing
Textile group exports from the country increased by
al Trade Centre (ITC) under the Partnership for development of this sector, setting up the Ethiopian
$847.106 million were exported compared to the
4.68 percent from last year as textile products worth
Investment and Growth in Africa (PIGA) project. The Textile Industry Development Institute (ETIDI) to
over $5.763 billion were exported as compared to
exports of $880.050 million during the same period
discussion was organised in collaboration with the strengthen the overall value chain, and created a
last year as it decreased by 3.74 percent.
exports of $5.506 billion during the same
Ethiopian Investment Commission (EIC) and the conducive investment climate for the sector.
July/August 2020
November/December 2019