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  • Feb 18th, 2004
  • Comments Off on Machinery and dyes import: textile industry to cancel all orders to Europe
Pakistan's textile industry has decided to cancel all orders for the import of machinery and dyes and chemicals from Europe if the European Union (EU) did not review its decision to remove Pakistan from the General System of Preferences (GSP) scheme and impose anti-dumping duty on export of bed-linen.

The announcement was made at a press conference on Tuesday on the eve of the visit of EU Political Commissioner for External Relations Chris Patten.

Addressing the press conference the textile industry giants Bashir Ali Muhammad of All Pakistan Textiles Mills Association (Aptma), Shabbir Ahmed of Pakistan Bed-linen Exporters Association, S.M. Obaid of Towel Manufacturers Association of Pakistan and Afroze Lari demanded that the GSP concession should be extended for a year as has been extended in the case of three South American countries for their continued fight against drugs.

The textile leaders accused the EU of betraying the bed-linen exporters by pledging increased quota and duty-free status, which ended up with a punitive duty of 13.1 percent and another 11 percent duty in lieu of the GSP concession. The encouragement by the EU led the textile exporters to invest $ 3 billion in installing new machinery imported from Europe.

They said that 25 percent duty on textile exports from Pakistan would make our textile products non-competitive and the country would lose dollars 2 billion exports at a stretch.

They termed the EU action against Pakistan a negation of the new WTO regime, which was aimed at removing all trade barriers.

It appears that the major powers want to put restrictions on trade with developing countries under the garb of globalisation.

They warned that the EU actions would result in massive unemployment in the textile industry, which was the largest contributor to the economy of Pakistan, which was struggling hard to fight against terrorism and poverty.

The unemployment, they feared, might harm the country's fight against terrorism and drug trafficking.

The industry leaders urged President Musharraf, who is also chairman of the Federal Export Board, to raise the issue with the EU leaders during their visit on Thursday and save the industry from total collapse.

Also present at the press conference were Naseem Sattar and Shoaib Majid.

Copyright Business Recorder, 2004


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