Page 16 - TEXtalks International July/August 2022

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Expected India-UK FTA alarms

US textiles imports from
Pakistani textile exporters

India-Pakistan are on the rise

With India likely to sign a Free Trade Agreement EU-GSP scheme following Brexit.
(FTA) with the United Kingdom (UK) soon, exporters
of various products in Pakistan fear they might lose
The UK is Pakistan’s fourth largest market for
The textile imports of the USA are on the rise, and Apparel constituted the bulk of textiles and garments
important markets to India in Europe. Being the
exports. As much as 85% of Pakistan’s exports to
imports from India and Pakistan grew by around imported by the US in January-March 2022. It was
the UK consist of other made-up textile articles,
major competitor for various products in the foreign
53-54%. On the other hand, imports from Honduras, valued at $24.314 billion, while non-apparel
articles of apparel, cotton, and leather products. All
market, India may occupy the lucrative market under
which is among the top 10 suppliers, registered a imports accounted for $8.053 billion, according
a relaxed or free duty structure.
these products currently enjoy duty-free access to
growth of only 20.97 % compared to the same to the latest Major Shippers Report released by
the country under the GSP+. The UK is also
period of the previous year. The total import of the US department of commerce. Of the total
Pakistan’s 15th largest source of imports. Major
Moreover, although Pakistan also enjoys a relaxed
textiles and apparel by the United States continues US textile and apparel imports of $32.368 billion
imports include iron, steel, machinery, electrical
duty regime in the UK under the UK-Generalised
to grow at a high rate and rose by 31.37% to during the period under review, cotton products
equipment, made-up textile articles, and miscellane-
Scheme of Preferences (GSP) system, the facility is
$32.368 billion in the first three months of 2022, were worth $14.495 billion, while man-made
going to conclude by the end of next year as the UK
ous chemical products. However, if the markets go
compared to $24.639 billion in the same period of fiber products accounted for $16.259 billion,
has placed Pakistan in the “Enhanced Framework,”
to India, Pakistan’s textile sector could suffer a
2021. With 27.47% share, China is the largest followed by $739.258 million of wool products,
considerable loss.
which is the same as the GSP Plus category of the
supplier of textiles and clothing to the US, followed and $874.120 million of products from silk and
by Vietnam with 13.59% share. vegetable fibers.
AGI Denim becomes AD
Stakeholders want to promote
the first company in
organic Cotton production in Pakistan
Pakistan to earn B
Compared to other materials on the market, organic cotton is one of the most environmentally friendly
Corp certified status
options, as it does not have a harsh manufacturing process. The production of organic cotton fabric uses
less energy, releases fewer greenhouse gases and due to the improved soil quality, uses significantly less
water. Cotton production in Pakistan is integral to the economic development of the country. The nation is
Karachi-based AGI Denim is the first company in
impact areas of governance, workers, community,
largely dependent on the cotton industry and its related textile sector, and the crop has been given a principal
Pakistan to earn B Corp certified status. AGI scored
environment, and customers. Applicants must reach
status in the country. However, being a thirsty crop and consuming a huge number of fertilizers, it has also
a 91.4 overall B Impact score. The vertical denim
a benchmark score of over 80 while providing
many disadvantages. Thus, the world is moving towards organic cotton and so should Pakistan.
manufacturer began the certification process in evidence of socially and environmentally responsible
2019, preparing for and answering 200 questions
practices relating to energy supplies, waste and
Recently, speakers in a three-day workshop in Pakistan called for organic cotton production which aims to
about its operation. Ahmed Javed, AGI Denim’s
water use, worker compensation, diversity, and
bring sustainability by reducing the use of pesticides, synthetic fertilizers, and water. They also stressed that
executive director, said that the certification process
corporate transparency.
organic cotton supports biodiversity conservation and promotes agroforestry in Pakistan, whereas conven-
required the company to make a few changes to
tional cotton production practices, with excessive use of chemical fertilizers and pesticides, pose threat to a
lower its environmental and social impact. It also
In Pakistan, sustainable manufacturing is becoming
wildlife and lead to the degradation of habitats and ecosystems. WWF-Pakistan is promoting organic cotton
pushed the company to introduce policies that put
the only solution to survive due to the alarming
people, communities, and plants at the heart of
with sustainable practices, which has resulted in a 22% reduction in pesticides, 12% reduction in the use of
pollution levels. Thus, AGI denim is making it
every decision it makes.
irrigation water, and 19% reduction in the use of synthetic fertilizer, which ultimately reduces the per unit
possible to show the other textile sectors that
greenhouse gas emissions at the farm level, compared to cotton produced by non-participating farmers.
The B Corp certification addresses the entirety of a business is possible while taking care of the environ-
company’s operations and covers the five key ment, community, and workers.
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