Reactions on EU concessions on Pakistan exports

[Lankan Ranger]

Reactions on EU concessions on Pakistan exports

The business community while welcoming the European Union’s (EU) positive gesture regarding its proposed plan to allow 75 Pakistani products duty-free access to its markets, on Friday demanded that the EU leaders should give this favour for a longer period instead of only three years while bed linen and T-shirts should also be included in the list.

The EU on Thursday had unveiled its draft proposal for 900 million euros ($1.3 billion) Pakistani goods duty free export to the EU from next year under EU’s plans for trade assistance to the flood-hit country. Out of a total 75 products included in the draft proposal around 65 are related to the textile industry.

All Pakistan Textile Mills Association, Punjab Secretary Anees-ul-Haq while talking to Daily Times said that overall it is a very positive gesture, however, he also said that two big textile export items, bed wears and T-shirts, were not included in the list.

“These two items should also be given access to the European markets because there was a lot of business in these products,” he said.

He said that 1.5 million cotton bales had been damaged in the flood-hit areas of South Punjab and Sindh causing a major loss to the country in the textile sector. He said that the duty free access of Pakistani products to international markets would create more jobs in the country and there would be a considerable boost to the textile sector.

The Lahore Chamber of Commerce and Industry (LCCI) President Shahzad Ali Malik appreciated this step on part of the EU terming it a big achievement of the Pakistani government, which would give a kick off boost to the national economy. However he also demanded that the EU leaders should give this facility forever instead of just three years.

LCCI Senior Vice President Sheikh Muhammad Arshad also lauded the EU leaders for lending a helping hand to the striving Pakistan industry in this hour of need when the country was fighting with the after affects of floods on the national economy. He said three years were not the appropriate time period because keeping in view the devastating damages the country needed this concession for a longer period until it recovers.

Mahmmod Ahmed, an industrialist dealing in paper production and printing, said that the credit goes to the government of Pakistan and the traders community for this strategic win. He said we didn’t need foreign funds instead such kind of support from the developed parts of the world would be really helpful to put step towards self reliance and property.

According to EU trade chief Karel De Gucht, this move was meant to help Pakistan recover from the devastating floods and maintain political stability. On the other hand, Islamabad has agreed to take back illegal migrants returned by EU states. Most of the trade concessions will be on textile exports, though there will be no tariff cuts on Pakistan’s main product bed linen.

It is pertinent to mention here that EU leaders had a tendency to get included Pakistan main textile product - bed linen - also in the list but a consensus could not be ensured because of open criticism and opposition form the EU industry.

Daily Times - Leading News Resource of Pakistan

 

[Omar1984]

Custom duty waivers

EU countries to remain major gainers

* Bed linen not among 65 exempted items

By Razi Syed

KARACHI: The facility of the custom duty free exports of textile and leather products will benefit EU countries, as they will get the finest products on the cheapest price in the world.

European Union (EU) has exempted Pakistan’s leading value-added textile and leather products exports from custom duty for the next three years. Undenatured ethyl alcohol of actual alcoholic strength of 80 percent is also included in the 75 lines.

The exemption will benefit sixty five textile product lines, but not bed-linen, with four out of 10 EU imports in that category are already being exported from Pakistan at heading the list, which also includes six lines of leather goods and three of footwear.

“Though the custom duty exemption will benefit these sectors but the huge beneficiaries will be European countries as they will sell finest products of the world on huge interest”, cotton and cotton products analyst, Shakeel Ahmad said.

Ahmad said the EU custom duty free export offer would go in effect from January 1, 2011 and it is termed as an aid-linked package designed to help recover the country from the flood catastrophe.

He said proposing to lift duties on 75 lines by EU would however benefit exports of Pakistan but major export of bed linen and raw cotton in textile category has been left unattended.

He said falling rupee against dollar and other major currencies and finest exports on cheaper rates from Pakistan would greatly benefit the EU countries.

The unilateral suspension of duties, available for the next three years, concerns goods accounting for 27 percent of Pakistan’s current imports to the EU.

He said lifting duties on the products would result in an estimated increase of EU imports from Pakistan to the tune of around $140 million.

Exports from Pakistan are currently worth around 3.3 billion euros each year, 900 million euros of which comes from these 75 lines.

The package will be presented for approval to member states and the European parliament in the next few days and will only come into effect if World Trade Organization partners grant a waiver.

Chairman Pakistan Tanners Association on Skin and Hides and Environment, Agha Saiddain said our leather and leather products exports will be able to face the Indian and Bangladesh exports.

“We will become cost effective to an extent of fifty percent in the international market and if the government provides cheaper power without interruption and other incentives, we will double our export”, Agha added.

He said the package was exclusively designed for Pakistan; it is not available to other countries including India, Bangladesh and Turkey.

He said India would definitely express sensitiveness with WTO, but it is hoped that EU officials would do something to do away the complaint.

The list included the items and extent of duty concession allowed by the EU also dried mushrooms and truffles, whole, cut, sliced, broken or in powder, cotton yarn, Plain weave cotton fabric, woven fabrics of cotton, twill weave cotton fabric, men/boys overcoats, anoraks etc, of cotton, knitted 100 percent, floor-cloths, dishcloths, dusters and similar cleaning cloths, made up articles of textile materials etc.

Grain splits leather, strips or sheets of hides and skins of bovine, prepared after tanning or crusting, without hair on chamois leather, patent leather and patent laminated leather.

Specially designed gloves for use in sport, of leather or composition, protective gloves of leather or composition leather, for all trades, mittens and mitts of leather or composition leather, special sports gloves.


Daily Times - Leading News Resource of Pakistan