Pakistan has bright chances to compete in the US market following Chinese imposition of duty on its export of most sensitive textile and clothing products from January 1. The Chinese Ministry of Commerce recently announced that the export taxes would be imposed from January 1, 2005 to limit an expected surge in the textile and apparel exports after the elimination of quotas.
According to the sources here, the Chinese move would benefit Pakistan, which had a large export of trousers and cotton underwear to the US, and the Chinese levy would make Pakistan textile products more competitive in the US market.
The international textile sources quoted the China's former World Trade Organisation (WTO) negotiator as saying that China would impose the export tariffs raging from two percent to four percent with a maximum rate of 10 percent on a selected list of most sensitive products.
The sources believed the Chinese authorities would apparently target most sensitive US categories such as cotton, and man-made fiber trousers, cotton underwear and man-made fiber shirts.
Taxes will not apply on the value of targeted products but on the quantities to stimulate the sales of higher quality items. By levying the export taxes, Beijing mainly aimed at improving its image in the developed and developing countries, the sources added.
It is said that China's exporters already received the orders for spring deliveries and the prices had been negotiated. Beijing's decision will not limit the current fall in the apparel prices.