Home »Cotton and Textiles » Pakistan » New Year to bring hopes, fears for textile exporters

  • News Desk
  • Jan 1st, 2005
  • Comments Off on New Year to bring hopes, fears for textile exporters
The New Year would bring both hopes and fears for Pakistani textile exporters as the quota regime would come to an end and a free world market would offer more competition than ever before. While some exporters find it a new attraction with more opportunities to grow, many believe that the developing countries exporters would be worst sufferers.

The quota-free regime under the WTO would be implemented from January 1, 2005. Pakistan being dependent on textile products for most of its export has yet not come out with a clearer picture to deal with the quota-free regime.

Exporters said that the European Union had already devised new arsenals in their weaponry and would be used against the exporters of developing countries.

"The compliance of labour laws, health and environment could be used as weapons against the exporters from developing countries," Aptma Sindh Balochistan Zone former chairman Mushtaq Ahmed Vohra said.

He said buyers' would come and check the labour conditions and environment and they can reject our environmental condition without argument. He explained with an experience that recently a European Union buyer sent his men to check a factory and the people after staying only for two days left the country fearing security risks and the exporter lost his orders.

Another major fear was about anti-dumping duty, which could be imposed even after implementation of quota-free regime. The condition that if someone complains about the dumping and duty is imposed on the exporters, then the complainant would also get the share from the anti-dumping duty.

"This is clearly an incentive from the western world for their people to start complaining about dumping," Vohra said.

However, many exporters see more opportunities in the wake of quota-free regime and set their targets for increase. The exporters have no doubt about beginning of cut-throat competition with the first day of first year of quota-free regime. Pakistani exporters expressed their confidence for the growth of exports and believe that quota-free regime would help them in building history.

They rejected the argument that China would pose any threat to Pakistani exports. China announced to double its textile exports after implementation of WTO and planned to capture the lucrative European and American markets. Even India sees China as the main competitor as the country is able to produce cheaper and quality products. "We are far better than China as far as quality is concerned," a textile exporter Waqar Khan said, adding that the Pakistanis have their established relations in the world textile market.

However, exporters were of the view that they could not reduce the cost up to the level of China.

They said Pakistani textile industry has prepared itself to face the new era of quota-free regime. In the last four years at least $5 billion have been invested for upgrading the textile industry.

Many exporters said that future of textile exports largely depends on Pakistan's relation with the European Union and the United States. They said that the exports of Turkey have reached $72 billion and the country has announced to take it to $80 billion and the reason is political stability. The European Union has decided to consider Turkey for the membership and negotiations would be started soon.

The exporters showed their confidence that Pakistani leadership was able to cater to more profitable relations with the western world.

"Hopes are higher than the fears," an exporter said.

Copyright Business Recorder, 2005


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