The proposed bill to extend 14 Asian nations' textile exports duty free into USA is likely to face a strong opposition as Senators favouring local textile producers would resist such a move, trade sources said.
The bill introduced by Democrats, Senator Dianne Feinstein seeking trade relief for 14 Asian LDCs (least developed countries), including Bangladesh, Sri Lanka and Cambodia, has already been tabled and would be presented for debate in the Senate soon.
The other countries recommended to be given preferential status under Trade Act are Afghanistan, Bhutan, Cambodia, Kiribati, Laos, Maldives, Nepal, Samoa, Solomon Islands, East Timor, Tuvalu, Vanuatu, and Yemen. While not classified as a least developed country, Sri Lanka is included to promote economic recovery from the 2004 tsunami. The stakeholders extremely worried over US move, were of the opinion that duty free status to Bangladesh, Cambodia and Sri Lanka is destined to have a serious onslaught on Pakistan's apparel exports in particulars and textile exports in general.
It is also expected that some African countries would strongly oppose the recent US move as they were in way of establishing their textile sector after getting duty free market access into USA under AGOA (African Growth and Opportunity Act), few years back.
While introducing the bill, the senators argued that such privileged market access would help eliminate the roots of extremism in some Asian countries by creating jobs, reducing poverty and ensuring political stability.