WASHINGTON (September 20 2008): Arguing that the most vital step the Unites States can take to help Pakistan succeed is to create economic opportunities for its people, a top American expert has urged Washington to ease its tariff policies toward Pakistani products as a way to bolster the South Asian country's exports.
"The single most useful thing the United States can do to help Pakistan succeed is to put Pakistanis to work. And the single most effective step toward this end Washington could take would be to eliminate its current punitive tariff policies on Pakistani exports," Robert Hathaway, Director of Asia Programme at Woodrow Wilson Centre says.
As it currently stands, US trade policy actually discriminates against Pakistan, he noted in an article entitled "Getting Smart on Pakistan." "US tariffs on Pakistani textiles' easily Pakistan's most important export" are far steeper than on similar goods from other countries. As Edward Gresser of the Progressive Policy Institute has pointed out, each container of exported towels puts 500 Pakistani men and women to work.
"Yet, textile exports from literally dozens of developing countries around the world face lower US tariffs than do Pakistani textiles. The least we could do is to level the playing field for Pakistani goods," Hathaway reasoned in the article distributed by the Common Ground News Service. The author/editor of several articles and books on Pakistani economy and energy needs said many rich countries enjoy US trade benefits not available to Pakistan.
Last year, Pakistani exports to the United States totalled not much more than a quarter of the value of Sweden's exports. Yet the $365 million in tariff duties the US imposed on Pakistan was almost three times the figure it extracted from Swedish goods. "No wonder many Pakistanis disbelieve our protestations of good intentions toward their country."
"It makes good political, economic, and strategic sense for the United States to move - and quickly - to give Pakistani textile exports preferred tariff status " or at least parity with their competitors.
"Doing so will not be easy. Entrenched US interests will denounce the idea as too costly for American industry and too destructive of American jobs. But surely a way can be found to meet the legitimate concerns of US companies and workers. As the United States seeks to help Pakistan, trade parity should be at the top of the next administration's agenda." On the political side, he advocated that the United States must work to sustain democratic governance and the rule of law in Pakistan.
"In the days and weeks ahead, the administration must make clear its expectations of Pakistan. The good news is that - contrary to what Pakistanis widely believe - the United States wants for Pakistan the very same things most Pakistanis desire: a stable government responsive to their wishes, a prosperous economy that meets the needs of the meekest as well as the mightiest, a judicial system that dispenses impartial justice, an end to extremist-sponsored violence and peace with its neighbours."
In the United States, there is widespread support for generous and long-term assistance to Pakistan, he said citing bipartisan legislation, the Biden-Lugar bill, which is now under consideration on Capitol Hill. The bill envisions a tripling of US assistance during the next decade and prospects for its adoption are promising, Hathaway added.
