Embargoes on textile exports to the US are expected this year because of non-availability of carry forward quota due to removal of quotas in 2005.
Pakistan's textile exports, which are already under pressure in EU markets because of withdrawal of GSP (generalised system of preferences) concession, will suffer another set back due to the loss of C.F. quota which constitutes 6 to 7 percent of the total quota for USA.
The C.F. quota, utilised by exporters during a year, is adjusted in quota ceiling in the following year. Since there would be no quotas in 2005, shipment made against C. F. quota would be stopped at US ports.
Chairman Pakistan Bedwear exporters Association (PBEA), Shabir Ahmad has expressed concern over loss of C.F. quota that would adversely affect the textile exports.
Fearing embargoes on shipment from quota countries, the US exporters are trying to shift orders to countries and categories already freed of any questions.
The US exporters' fear that many shipments might be forbidden to enter the US territory by the end of the year and the superstores would not be able to receive certain items for the holiday season.
The US Trade Administration will reject requests for any increase in textile quota in 2004 under C.F. provision, said the US under Secretary for International Trade Grant Aldonas.
In USA a number of textile associations have sent a letter to President Bush, urging him to forbid the use of C.F. quota this year.
Under the provision of C.F. quota, the low cost countries enjoyed the benefit to borrow 6 to 7 percent of quota for US while the EU limited the advance use of quota to 5 percent.