PTEA concerned over US tariff

FAISALABAD: Patron-in-Chief of the Pakistan Textile Exporters Association (PTEA) Khurram Mukhtar has expressed concern over the recent tariff actions by the United States (US), stating that while these measures present challenges for Pakistan’s textile exports, they appear to be part of a broader strategy and don’t seems definitive.

“The United States is our single largest export market and a deeply valued trading partner,” Mukhtar stated. “Despite the recent tariff adjustments, we believe Pakistan retains a competitive edge over other textile-exporting nations, thanks to our fully integrated supply chain, commitment to quality and long-standing trade relationships.”

Mukhtar emphasized that the US actions, though impactful, should not be viewed in isolation. “The global response especially on services offered by US companies abroad will be crucial in determining the broader implications. These tariffs have the potential to trigger multidirectional ripple effects across the global economy.”

Highlighting the historical bilateral trade relationship, Mukhtar noted, “Pakistan has been a significant importer of US cotton for decades, directly supporting American farmers and strengthening our mutual economic ties. It is vital that the US administration acknowledges this partnership and refrains from policies that disproportionately harm Pakistan’s exports.”

He further pointed out that the elasticity assumptions commonly applied in US tariff models may not reflect the unique trade dynamics between the two countries.

“The US must consider the real-world implications of these measures rather than relying on general assumptions.”

To address these challenges, PTEA plans to engage proactively with US trade officials and advocate for preferential market access. At the same time, efforts are underway to diversify export markets, enhance value addition and call upon the government to implement industry-supportive policies.

“As a goodwill gesture and a strategic move to bolster ties, Pakistan is ready to give preference to key US imports such as cotton, soybean, scrap, and petroleum products,” said Mukhtar.

“Lowering tariffs on these essential commodities can pave the way for reciprocal measures from the US, leading to a more balanced and sustainable trade relationship.”

He expressed optimism: “We are confident that through mutual understanding and proactive dialogue, we can reach a constructive agreement with the United States Trade Representative (USTR). This is not just a challenge, it is an opportunity for Pakistan to strengthen its trade position and further deepen economic cooperation with the US.”