The News International, Pakistan
Different trade agreements to boost textile industry
By our correspondent
22 December 2012
LAHORE: Advisor to Prime Minister on Textile Dr Mirza Ikhtiar Baig said that trade concessions on 65 items from the EU, implementation of GSP plus status from Jan 1, 2014, preferential trade agreement (PTA) with Turkey, signing the second phase of free trade agreement (FTA) with China and trade opportunities with India are reasons for buoyancy in textiles.
While talking to the media on his visit to Lahore, he said that the country’s textile industry would get a benefit of $320 million with the duty-free trade facility from EU for concessions on 65 items. “This facility would continue till December 31, 2013,” he said. “A PTA with Turkey would be signed from early next year that would reduce the import duty on Pakistani products by 6.4 percent in Turkey.” Pakistani products are currently attracting a duty of 24.5, which would be slashed down to 18.10 percent after the PTA.
Regarding the GSP plus status to Pakistan, he said that the criteria has been revised and approved by EU and all exports would be accommodated under the facility from January 2014.
He said that in the second phase of FTA, starting from January 2013, the Chinese market for Pakistani raw materials would be expanded, as China’s textile industry is phasing out production of raw material as well as value-added textile products due to 20 percent increase in wages.
In view of trade with India, he said that the duty on all Pakistani textile products, barring 100 items, would range in between five to 10 percent from April 2013 onwards, which would open a new window of opportunity for Pakistan in the Indian market.
He added that the export of coarse count yarn to India would be bullish once bilateral trade is open between the two sides.