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National

October 9, 2010
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Apparel, home textile not on EU duty concession list

National

October 9, 2010

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KARACHI: The list of 74 items, on which the European Union has announced import duty concessions from Pakistan, did not include major value-added textile products, said the textile-makers on Friday.
“The EU trade concession’s list does not include our strength textile products such as apparel and home textile,” said Zubair Motiwala, Advisor to chief minister, Sindh, on investment.
Most of the items in the list were primary raw material, secondary raw material and semi finished goods, he said.
The proposed list available with The News includes about 60 percent items of raw materials like plain woven-fabrics of cotton, cotton yarn and fabrics of various qualities.
Motiwala added that textile makers will have to develop especial capacity to manufacture and export those finished and value added textile products, which the EU has allowed in the list.
“To develop capacity for manufacturing those non-strength items, we will be required raw material of which we are already short and the export of raw material to the 27-bloc nations under the available 74-item list would aggravate the for local manufacturers.”
Shabbir Ahmed, former chairman of Pakistan Bedwear Exporters Association, said that the list did not provide much to the nation of which quantum the textile makers were awaiting.
Moreover, the condition of clearing the final list of concessionary items by the World Trade Organization at last may become a hurdle in the way of EU to help the nation to fight against flood devastation.
Fawad Ijaz Khan, chairman of Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA), said in a press statement that the proposals of European Union Executive Committee to liberalize import from Pakistan will not benefit export of leather garments.
He added that EU has given concessions on import of hides and skins which will cause shortage of raw material for leather garments in the country. He said that it was most difficult time

for leather garments industry because of shortage of hides and skins, which was caused due to the recent floods in the country. “About one million livestock has been killed by the floods and around 20 million livestock are displaced. These displaced animals are also facing starvation due of lack of fodder.
“The only one leather finished item in the proposed list of duty free import from Pakistan is leather gloves, which currently have 5-10 percent duty in EU.”
President, vice president and senior vice president of KCCI in a joint press statement have said that that the government had given a list of around 200 items to the EU initially, but only 75 items were cleared, which would only increase export in little amount, though they hoped the list would expand in future and help local business and industrial community.
“The business community of Pakistan expected far more from EU in a bid to lend support to the flood-hit economy. Pakistan deserves the special treatment that regional competitors enjoy.”
They, however, hailed initiative of EU to suspend duties on export of leather, textile and agriculture goods for the period of three years.
Sultan Chawala, president of Federation of Pakistan Chambers of Commerce & Industry also appreciated European Union for agreeing the grant of trade concessions on certain items.
“This will help Pakistan to overcome the impact of devastating floods and maintain political stability.”

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