The Pakistan Leather Garment Manufacturers and Exporters Association (Plgmea) has spoken of great scope for leather and leather garments export to the ten newly inducted European Union (EU) members.
Plgmea Chairman, Fawad Ijaz Khan in a statement said the leather industry as a whole had shown remarkable growth during July 2003 to February 2004 in the export of leather and leather garments to the new members in EU fold, which now had a combined population of 75 million.
He said the total leather exports to these countries surged by about 100 percent to dollar 4.50 million from dollar 2.26 million during the same period, last year.
Plgmea Chairman said that the most positive impact of these countries, joining the EU fold, was reduction in import duty from 23 percent to 4 percent in Poland. Some countries, which had zero duty on import of leather and leather goods would now raise it to the standard 4 percent, he added.
Fawad pointed out that most of these countries had cold weather, which was most suitable for the consumption of leather products, such as jackets. Buyers in these countries had access to the Russian markets, which created another good opportunity for the Pakistani exporters, he said.
The Plgmea chief suggested that the government should also realise that export potential, and devise international marketing campaign to penetrate those markets for boosting the exports.
He said the government should use its influence in the World Trade Organisation, so that high customs import duty of 20 percent on leather garments import into Russia should be reduced, which had adversely affected our exports to that country.
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