EU trade package: textile industry may contribute 1 billion euro to exchequer

The textile industry of Pakistan is likely to contribute up to one billion Euros to the national exchequer after approval of the trade package from the European Parliament earlier cleared by the World Trade Organisation (WTO).
Dr Ikhtiar Baig, Advisor to the Prime Minister on Textile, while talking exclusively to the Business Recorder said that the trade package that had been approved by the WTO regarding the trade concessions to Pakistan on 75 textile items had now reached Brussels. "After discussions upon the terms and conditions of this trade package, the European parliament would give its approval," the advisor said.
Dr Baig said that these trade concessions announced by the WTO would initially be effective for two years from January 1 to December 31, 2013 but the time period could be extended for another year. "Pakistan can add up to one billion euros to the national exchequer during this period," he added.
Muhammad Jawed Bilwani, Chairman Pakistan Apparel Forum told this scribe, "This step taken by WTO would highly be beneficial for the textile sector of Pakistan as the industry is already undergoing severe crisis due to the electricity and gas load shedding and our cost of production has doubled compared to last year. It is a fact that this package is a blessing for our textile industry that remains the major foreign exchange earner for Pakistan".
Yarn, fabric, denim fabric, ladies' jeans, leather, ethanol, knitted and woven garments are among the 75 items that are part of the trade package. These 75 items amount to almost €900 million in import value, accounting for about 27% of EU imports from Pakistan (€ 3.3 billion).
Bilwani noted that the EU was Pakistan's largest trading partner, receiving almost 30% of Pakistan's exports - worth almost € 3 billion. Pakistan's trade with the EU was mainly composed of textiles, which accounted for over 70% of total Pakistani exports to the EU, followed by leather products, which was 13% of the total Pakistani exports, he added.
"The textile industry of Pakistan may earn 300 million euros per annum after the approval of this trade package", Bilwani said. He added that there were 14 products of the package that were subject to Tariff Rate Quotas (TRQs) and would be eligible for import into EU duty free up to a specified quantitative limit. This quota had been established on the basis of 2007-2009 exports and items included yarn, fabrics, knitted garments, woven garments and home textiles, he further said.
There were some types of woven fabrics, gloves, T-shirts, track suits, curtains, floor cloths, made-up articles of textile material etc that would be importable from Pakistan without any quota and free of duty by the EU, he said.