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    EU Proposal To Grant Tariff Reductions To Textiles In Pakistan

    2010/11/5 14:34:00 44

    EU Textiles

      

    European Commission

    A formal proposal to suspend import tariffs on 75 products in Pakistan in the next three years has been announced, aiming to increase Pakistan's exports to the EU by nearly 100 million euros (about US $140 million).

    The EU Trade Commissioner Karel De Gucht said, "this proposal will be a substantive proposal to promote economic recovery in Pakistan.

    "


    Most of the 75 Pakistan products recommended by the EU for exemption from import duties are garments and textiles, which are the main export items of Pakistan, and 60% of them are exported to the European Union.


    The EU's proposal to grant tariff relief to textiles in Pakistan includes knitted or crocheted gloves, and its application is universalization.

    Preferential duty

    (GSP) the tax rates and general tariff rates are 6.4% and 8% respectively; the GSP and general tariff rates applicable to women's cotton garments are 9.6% and 12% respectively.

    The EU recommends that many products of yarn and cotton should also be included in the list of products imported from the customs, as well as a number of knitted and woven garments.


    The EU's proposal to grant a tariff free import of certain textiles in Pakistan will be implemented from January 1, 2011 as approved by the Council of Ministers of the European Union.


    European textiles and

    tailoring

    Opposition to the EU's possible trade preferences in Pakistan is surging, and the canal claims that if the measure is implemented, it threatens nearly 120 thousand jobs.


    After the European Union indicated that it proposed to grant temporary tariff relief to certain textile projects in Pakistan to help flood victims' economic recovery, the European Textile and Clothing Confederation (Euratex) has sent a letter to Van, the chairman of the European Council, to express its "serious concern" about the measure.


    Euratex mentioned in the letter that "we are not prepared to become an industry abandoned because of political considerations that need to be given to the interests of third countries in trade policy".

    However, Euratex believes that the trade preferences provided by the European Union are of little help to the support of the Pakistani countries affected by the floods.


    Euratex chairman Dr. Peter Pfneisl said, "Pakistan textile and garment industry is located outside Pakistan disaster area", "in addition, Pakistan textile and garment industry is very competitive, and the production facilities are excellent and efficient. Therefore, the EU's trade preferences will be the Pakistan textile and garment industry, rather than the victims who really need help."


    European insiders also worry that when the new regime takes office in 2014, the EU leaders will change the standard of applying GSP+ special preferential treatment scheme, which will benefit Pakistan.


    Euratex alleges that these tariff concessions will create a "negative impact" on the overall supply chain currently covering the European yarn and fabric to garments and household textiles, not only to the 27 member states of the European Union, but also to Turkey, which is benefited from the preferential relationship with the EU.


    Spain s Consejo intertextil Espanol (CIE) recently said that tariff concessions granted to Pakistan textiles could bankrupt 1000 Spanish manufacturers and lose 20000 jobs.


    However, although European textile and garment enterprises are against any assistance given to Pakistan, the leaders of the Palestinian industry believe that the EU's proposal for tariff relief is not enough. The measure can only promote the export of textile raw materials. Pakistan companies hope that tariff concessions can include more clothing items, and claim that the garment industry is the only industry that can increase employment opportunities and help the economic recovery of the Palestinian countries.

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    High Priced Cotton Will Replace Low Price Cotton &Nbsp; Next Year'S Clothing Price Or Inflation Will Rise.

    Cotton prices continue to rise, which is nearly two times the same period last year, and still can not see where the top is. In this regard, insiders said that cotton related enterprises could still rely on low price cotton stocks to maintain factory price stability this year. If the cotton price rising momentum is not contained next year, high priced cotton will replace low priced cotton and the price of clothing will probably rise.

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