Pakistan, China and India are widely expected to gain from the new quota-free system of global textile trade. Pakistan may benefit from the export of raw cotton, yarn cloth and garments that account for three-fifth of the country's overseas shipments. According to a report published in Chinese media on Thursday, India is no longer the front-runner to challenge China for the fastest economic growth among the world's most populous nations, the Pakistan is.
The reports referred to Pakistan's new budgetary proposal scrapping a 15 percent tax on materials imported by the country's textile industry.
A textile windfall would be a big bonus for an economy brimming with optimism, and quite deservedly. After all, it has been two decades since it last grew as fast as this year. Mimicking China's growth may be a tough act to follow, but Pakistan seems determined, the report added.
Meanwhile, a senior official of the Chinese commerce Ministry warned against allowing the textile issue between China and the United States to become an "obstacle" to other trade.
"The textile issue is exaggerated in the US. It should not become a major obstacle that blocks Sino-US trade, as textile trade only accounts for around six percent of annual trade volume between the two countries," the sources added.
China's textile exports to the US stood at 10 billion dollars in 2004, while imports of farm produce from there, which reached 7.7 billion dollars last year, was enough to just about match the figure.
China had also become the largest buyer of cotton and soybean from the US.
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