Page 10 - November/December-2019

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PAK-EU collaboration for development

of Pakistan’s textile sector

Adil Bashir, Punjab Executive of APTMA, has and greenfield venture extends in all sub-segments
assured that they will work in collaboration with the of the textile sector for making of an empowering
European Union for the development of Pakistan’s situation," he added.
The textile sector of Pakistan will get a boost in During the first phase of the FTA, local manufac- textile industry. He also concluded that “APTMA had
exports to China as the second phase of the Free tures complained about the unbalance in the a functioning influence in anchoring the EU GSP Androulla Kaminara, Envoy Assign to Pakistan,
Trade Agreement (FTA) between China and deal, especially the textile sector which raised Plus status for Pakistan. Consequently, Trade from during her visit to Lahore Chamber of Commerce
Pakistan will offer the same tariff concessions concerns about the favours it granted the Pakistan to EU has expanded remarkably, initially, and Industry (LCCI) said: “There is no uncertainty
enjoyed by the ASEAN countries. Chinese textile industry. They believed that the however it has turned out to be stale at €5.5 billion that Pakistan has an immense potential to twofold
FTA was damaging the local industry and giving for the last three years”. trade, in any case, recognition of the board is the
The agreement covers 313 tariff lines of US $8.7 undue advantage to the Chinese. The govern- key for the legislature and industry to keep up and
billion Pakistan's overall exports and US $64 ment took note of the demands by the industry He said that combined efforts of APTMA and the continue trades." She added “we could upgrade
billion of China’s global imports. Textile and as they pointed out that during the first phase, current government had resulted in the formulation trade in different areas other than the textile sector.”
garments sector is at the forefront of this deal tariffs were imposed on Pakistani textile exports. of improved and long-term textile strategies for the
and will help enhance the sector’s exports to At the same time, they complained that the growth of Pakistan’s textile industry. “We are keen to assist Pakistan with upgrading
China as it offers the same duty free access to country’s competitors from the ASEAN had duty trade to the EU and might want to be its accomplice
ASEAN countries. free access to the Chinese market. “Stockholders are acutely anticipating to commence in such manner,” Androulla Kaminara, Envoy Assign
BMR (balancing, modernization, and replacement) to Pakistan asserted.
The agreement is already bearing fruits as the To fix this disparity, the Pakistani government held
Indian yarn exports dropped more than 38 several rounds of negotiations with their Chinese
percent for the first six months of the current counterparts and now hope that the second
fiscal year. According to reports in the Indian phase of the FTA would overcome the concerns
press, the cotton yarn exports between April and of the local manufacturers and increase exports. Brexit: Extension agreement by
September of this year dropped from US $2.08 As a counter-measure, the sensitive list had been
billion to US $1.27 billion compared to the same increased from 10% to 25%, totaling 1760 tariff European Union until January 31st
period from last year. lines and covers 37% of Pakistan's imports from
China. This, the two sides hope, will give protec-
The Indian report cited the FTA’s second as a tion to Pakistani industry from Chinese import,
major reason for the decline as it said that the and the textile and garments sector is a major The separation of United Kingdom (UK) from the Johnson’s promised deadline.
India did not enjoy the same tariff free access to beneficiary of this sensitive list. Whereas, the European Union (EU) — better known as Brexit
the Chinese market, whereas India had to pay 3.5 tariffs from the industry had also been lifted to — has become a prolonged, antagonistic affair The UK was scheduled formerly to quit the EU
to 5 percent tariffs. increase the export of the sector. The Chinese without any clear solution. on October 31, 2019 but does not currently have
side also agreed to immediate market access on a trade deal in place with the EU. The European
The full effects of the second phase of the FTA its priority products, tariff reduction and measures EU President Donald Tusk tweeted that EU has Union has agreed to the deal with the UK, but
could be gauged after the deal comes into effect for protection of the domestic industry on agreed upon the acceptance of proposal by UK this has yet to be approved by the Parliament.
from December 1, which would boost the exports Pakistan’s request. to extend the Brexit until January 31, 2020. Third time postponed Brexit is pretty
of Pakistani products to the Chinese market. Though, it offered the UK an option to leave anti-climactic though, the European Union does
Earlier in the month, Abdul Razak Dawood, The first phase of FTA between China and earlier if it could approve the Brexit deal before not want to be accused for expensive no-deal
Adviser to the Prime Minister for Commerce, Pakistan was signed on November 24, 2006 and that date. The decision, agreed upon by Brexit and all expected trade and economic
Textile, Industry & Production and Investment, became operational in 2007. The negotiations for ambassadors from the 27 other EU countries, chaos for both UK and the European Union —
announced that the second phase would come the second phase began in 2011 and after eleven granted a three-month extension to Britain’s EU yet some Brexit supporters wants to take the risk
into effect from December 1 and it was becoming rounds, both sides signed the agreement in April membership, increasing the chances of a UK because they are thinking that it could bring an
operational earlier than usual. He said that it of 2019 in Beijing. election before the end of the year and ending instant and conclusive end to UK relations with
usually took a year to make such agreements any hope of a departure by Prime Minister Boris the European Union.
operational between countries but because of the Now, the second phase is about to take effect
special relations enjoyed by both the countries. which is already showing some positive signs.

October/November 2019